RAJYA SABHA COMMITTEES – A PROFILE (2011)

(Standing Committees and Department-related Parliamentary Standing Committees)

SUMMARY OF WORK DONE

RAJYA SABHA SECRETARIAT NEW

July, 2012/Asadha, 1934 (Saka)

RAJYA SABHA COMMITTEES – A PROFILE (2011)

(Standing Committees and Department-related Parliamentary Standing Committees)

SUMMARY OF WORK DONE

(1st January to 31st December, 2011)

RAJYA SABHA SECRETARIAT NEW DELHI

July, 2012/ Asadha, 1934 (Saka)

PREFACE

This publication attempts to present, in a concise form, information about the activities of five Standing Committees as well as eight Department-related Parliamentary Standing Committees being administered by the R ajya Sabha Secretariat, for the period from 1 January to 31 December, 2011. 2. For the sake of better understanding, the material has been divided into thirteen chapters dealing with one Committee at a time. Each chapter gives information regarding composition of the Committee, subjects selected for examination, review of work done, Reports presented, etc. 3. After every chapter, Annexures containing details of the sittings of Committees and Sub-Committees, etc. have been appended.

NEW DELHI; V.K. AGNIHOTRI, July, 2012 Secretary-General.

Committee Co-ordination Section

Price: ` 150.00

Website:http://www.rajyasabha.nic.in E-mail : [email protected] CONTENTS

Chapter No. Name of the Committees Page Nos.

Chapter I Committee on Subordinate Legislation 1-15

Chapter II Committee on Petitions 16-26

Chapter III Committee on Government Assurances 27-52

Chapter IV Committee on Papers Laid on the Table 53-83

Chapter V Committee on Ethics 84-85

Chapter VI Committee on Commerce 86-114

Chapter VII Committee on Health and Family Welfare 115-152

Chapter VIII Committee on Home Affairs 153-183

Chapter IX Committee on Human Resource Development 184-237

Chapter X Committee on Industry 238-256

Chapter XI Committee on Personnel, Public Grievances, Law and Justice 257-293

Chapter XII Committee on Science and Technology, Environment and Forests 294-299

Chapter XIII Committee on Transport, Tourism and Culture 300-322

CHAPTER-I COMMITTEE ON SUBORDINATE LEGISLATION

I. Composition of the Committee

1.1 The Committee was constituted on 29th September, 2010 with the following composition:—

1. Shri Kalraj Mishra — Chairman 2. Shri Jesudasu Seelam 3. Ms. Sushila Tiriya 4. Shri Vijay Jawaharlal Darda 5. Shri P. Kannan 6. Shrimati Maya Singh 7. Shri 8. Shri Narendra Kashyap 9. Shri Ali Anwar Ansari 10. Dr. K. P. Ramalingam 11. Dr. Janardhan Waghmare 12 Shri Syed Azeez Pasha 13. Shri Bharatkumar Raut 14. Shri M. V. Mysura Reddy 15. Shri Ahmad Saeed Malihabadi

II. Subjects selected for examination

1.2 The Committee had identified the following subjects for detailed examination: —

Sl. Ministry/Department Subject Date of Identification No. 1. Ministry of Civil Aviation Airports Authority of (Major 16.09.2011 Airports) Development Fee Rules, 2011

2. Ministry of Commerce & Newsprint Control Order, 2004 10.06.2011 Industry (Department of Industrial Policy & Promotion)

3. Ministry of Environment & (i) The Coastal Regulation Zone 13.06.2011 Forests Notification, 2011

(ii) E-Waste (Management and 25.11.2011 Handling) Rules, 2011

4. Ministry of Home Affairs The Andaman & Nicobar Islands 10.06.2011 Municipal Services (Classification, Control and Appeal) Rules, 2008

5. Ministry of Textiles Central Silk Board Silkworm Seed 14.06.2011 Regulations, 2010

1 III. Review of work done

(a) Sittings of the Committee

1.3 During the year, the Committee held 14 sittings for 19 hours and 41 minutes. A statement showing the dates of sittings of the Committee held during the period under review, the duration of the sittings and the subjects discussed is given in Annexure-I. (b) Study Visits 1.4 The Committee undertook two study visits during the year to have on the spot study of the subjects under its examination as per the details given below: — Sl. Dates Places visited Rules/Regulations Considered No.

1. 19th—25th Bangalore, Cochin 1. Central Silk Board Silkworm Seed Regulations, June, 2011 and Munnar 2010 2. Special Economic Zone Rules, 2006 3. The Coffee Board Cadre & Recruitment Rules, 1993 4. The Coffee Board Servants (Probation) Rules, 1986 5 Regional Rural Banks (Appointment and Promotion of Officers) Rules, 2010 and the current status of priority sector lending 6 Electrical Wires, Cables, Appliances and Protection Devices and Accessories (Quality Control) Order, 2003 7. Gas Cylinder Rules, 2004 8. Coastal Regulation Zone Notification, 2011 9. Coir Industry (Registration) Rules, 2008 10. Newsprint Control Order, 2004 11. IMCC (Permission to existing Medical Colleges) Regulations, 2006 12. Spices (Grading and Marking) Rules, 2005— Implementation of 176th Report of the Committee 13. BIS Hallmarking of Gold Jewellery Scheme 14. IMCC (Postgraduate Unani Education) Regulations, 2007 15. IMCC (Postgraduate Ayurveda Education) Regulations, 2005 16. Rubber Board (General Provident Fund) Rules, 1966 17. Bio-diversity Rules, 2004 18. Reverse Mortgage Scheme and other Social Sector Schemes 2. 25th September Mumbai and Goa 1. Coastal Regulation Zone Notification, 2011 to 1st October, 2. Kandla Port (Authorization of Pilots) Regulations, 2011 1964—Implementation of 163rd Report of the Committee

2

Sl. Dates Places visited Rules/Regulations Considered No. 3. Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 4.Regional Rural Banks (Appointment and Promotion of Officers and Employees) Service Rules, 2010 and priority sector lending schemes with special reference to micro credit to farmers 5. Reverse Mortgage Scheme, 2008 and other social schemes being operated by the Bank 6. Airports Authority of India (Major Airports) Development Fee Rules, 2011 7. Airports Authority of India (Management of Airports) Regulations, 2003 8. Highways Administration Rules, 2004 9. JERC for the State of Goa and Union Territories (Terms and Conditions for determination of Tariff) Regulations, 2009. 10. Motor Spirit and High Speed Diesel (Regulation) of Supply and Distribution and Prevention of Malpractices) Order, 2005

1.5 In addition, the Committee also undertook local visits inside Delhi on subjects under its examination as given below:—

Sl. Dates Rules/Regulations Considered No. 1. 18th January, (i) Telecom Consumer Protection and Redressal of Grievances Regulations, 2011 2007 (ii) DTH Broadcasting Services (Standards of Quality of Services and Redressal of Grievances) Regulations, 2007

2. 19th January, (i) The Electrical Wires, Cables, Appliances and Protection Devises and 2011 Accessories (Quality Control) Order, 2003

(ii) BIS (Terms and Conditions of Service) Regulations, 2007

(iii) BIS Hallmarking of Gold Jewellery Scheme

(iv) Mineral Conservation and Development Rules, 1988

3. 26th May, 2011 AIIMS Regulations, 1999-Implementation of 178th Report of the Committee

4. 23rd December, (i) Airports Authority of India (Management of Airports) Regulations, 2003 2011 (ii) Airports Authority of India (Major Airports) Development Fee Rules, 2011

3 IV. Reports Presented

1.6 During 2011, the Committee presented following Reports to the House: —

Sl. Report No. Subject No. and Date of Presentation 1. 190th Statutory Orders Laid on the Table of the Rajya Sabha during its 220th Session (16.03.2011) 2. 191st (i) Railways (Punitive Charges for Overloading of Wagons) Rules, 2007 (16.03.2011) (ii) Delhi Advocates’ Welfare Fund Rules, 2001—Implementation of 169th Report of the Committee

3. 192nd Statutory Orders Laid on the Table of the Rajya Sabha during its 221st Session (26.8.2011)

4. 193rd (i) The Building and Other Construction Workers (Regulation of Employment and (26.8.2011) Conditions of Service) Central Rules, 1998

(ii) State Emblem of India— (Regulation of Use) Rules, 2007—Implementation of 188th Report of the Committee

5. 194th The Haj Committee Rules, 2002 (26.8.2011)

6. 195th Statutory Orders Laid on the Table of the Rajya Sabha during its 222nd Session (16.12.2011) 7. 196th (i) The Tea Marketing (Control) Order, 2003 (16.12.2011) (ii) The Prohibition of Sale of Cigarettes and Other Tobacco Products around Educational Institutions Rules, 2004

1.7 Minutes of the sittings of the Committee on Subordinate Legislation relating to various Reports presented to the House were prepared and presented to the House along with the relevant reports. V. Summary of Recommendations

(a) 190th Report

Statutory Orders Laid on the Table of the Rajya Sabha during its 220th Session.

1.8 The Committee examined the notifications containing Subordinate Legislation that were laid before the Rajya Sabha during the 220th Session in the light of its recommendations as contained in its 131st, 135th and 152nd Reports regarding timely and proper laying of Notifications and reiterated this stand.

(b) 191st Report

(i) Railways (Punitive Charges for Overloading of Wagons) Rules, 2007

1.9 The Committee is of the opinion that the Rules should reflect the maximum limit of overloading in a wagon beyond which detachment of overloaded wagons for off loading or detachment should be done.

4 1.10 The Committee is of the view that in case of overload on weighment, the restricted speed, based on the rail-infrastructure, on which the wagons would run, and, the maximum overload on weighment upto which it would be allowed to run, should be categorically mentioned in the Rules.

1.11 The Committee suggests that the Rules for punitive charges for overloading of wagons, should aim at not only reducing overloading of wagons, but, also, at effectively reducing loading tolerance, at successive rate every year.

1.12 The Committee appreciates the rationale for levying punitive charges for overloading in “safe operation.” However, the Committee is of the view that these charges can be treated at par with source of revenue. The Committee, therefore, recommends that the punitive charges for overloading wagons can be modified as a measure of generation of revenue as overloading of wagons not only endangers safety of the wagons, but, results in leakage of revenue also.

(ii) Delhi Advocates’ Welfare Fund Rules, 2001—Implementation of 169th Report of the Committee

1.13 The Committee notes with satisfaction that the Government of NCT of Delhi has carried out amendments in the Delhi Advocates’ Welfare Fund Rules, 2001 incorporating its suggestions/recommendations in:—

(i) Rule 9 (8) by providing that the Chairperson presiding over the meeting, exercises his voting right only in cases where there is a tie in the votes cast, for the purpose of resolution of the same; (ii) Rule 12(1) by prescribing a specific time period of 4 months for issuing a certificate for recognition in Form-IV and also by providing for an authority for appeal/review, if the application for recognition is rejected which may be the State Bar Council of each State; (iii) Rule 14 by prescribing 6 months as the period for seeking re-admission as a member of the fund and by fixing the interest on arrears at the time of re-admission at not exceeding 3% and by prescribing a period of 15 days to ensure continuity of the membership of the fund and that the membership may be discontinued if the member failed to respond; (iv) Rule 15 by prescribing six months for the issuance of certificate of membership to the fund; (v) Rule 16 by increasing the period from 15 to 45 days for intimating the removal/ suspension of a member from the State roll to the Trustee Committee; (vi) Rule 19 by substituting the word 'thiery' with the word 'thirty', thereby rectifying a typographical error.

(c) 192nd Report

Statutory Orders Laid on the Table of the Rajya Sabha during its 221st Session

1.14 In addition to the concern expressed by the Committee over delay in laying of Notifications on the Table of the House, the Committee also express their deep concern over delay in framing of rules/regulations under different Acts. The Committee in its 47th report presented to the House on 14.9.1981 has recommended that the rule-making process should be completed within a period of six months of the coming into force on an Act. The committee has further recommended that in case a Ministry is not able to adhere to this time limit, it should seek extension of time for completing the rule-making process. The recommendation of the Committee reads as follows:—

“The Committee feels that the rule-making process could well have been completed within the time limit of six months which the Committee has laid down for making of rules under an Act after coming into force of that Act. Where however, a Ministry does not find it possible to adhere to the time limit, they should inform the Committee of the reasons why they cannot make rules within the time limit and seek extension of time for completing the rule-making process.”

1.15 The Committee is constrained to take note of the fact that the Ministries/Departments of Government of India are not complying with the Committee’s recommendation to complete the process of framing of

5 subordinate legislation contemplated under various Acts of Parliament within a period of six months. At the same time, the Committee also does not receive requests for extension of time for completing the rule-making process in terms of its recommendations as above from most of the Ministries/Departments. The Committee takes a serious note of the prevailing situation in which the Ministries/Departments are neither able to complete the task of framing rules/regulations under different Acts within the given six months’ period nor do they suo- motu approach the Committee for seeking extension of time. The Committee further notes that in order to ensure timely framing of rules/regulations it has taken an initiative to monitor the progress of framing of subordinate legislation in respect of all legislations brought about by different Ministries/Departments of Government of India from the year 2003 onwards with a view to ensure that the framing of subordinate legislation is not delayed. The Committee, however, finds that the responses from the Ministries/Departments have not been prompt in this monitoring exercise undertaken on behalf of the Committee.

1.16 In view of the above position, the Committee once again reiterates its recommendation that the Ministries/Departments should ensure putting in place subordinate legislation positively within a period of six months of coming into force of the Act. The Committee further recommends that in case the Ministry fails to meet with this deadline, they should invariably approach the Committee for seeking extension of time. The Committee further recommends that in cases where the time limit of six months is not adhered to, they should, while laying rules/regulations before the Parliament invariably lay a statement explaining the reasons why the framing of rules/regulations was delayed beyond six months so as to keep the Parliament apprised of the compliance of the Parliament’s mandate conferred upon the Executive.

1.17 The Committee examined the notifications containing Subordinate Legislation that were laid before the Rajya Sabha during the 220th Session in the light of its recommendations as contained in its 131st, 135th and 152nd Reports regarding timely and proper laying of Notifications and reiterated this stand.

(d) 193rd Report (I) The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Central Rules, 1998 1.18 The Committee during the course of its discussions with the concerned Ministries and other organisations associated with the implementation of the Rules observed the following facts:

1.19 The Committee expressed its dismay over the fact that even after the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 1998 have been in operation for a sufficiently long time, the States have shown a general reluctance to implement the welfare measures in its true spirit. This is evident from the data submitted by the Ministry of Labour and Employment. As per the statistics, States like Chhattisgarh, Jharkhand, , Uttar Pradesh and others have not even registered a single worker under the Act. However, on the other hand, the Committee appreciates the efforts made by States like Kerela and Tamil Nadu in getting the registration of workers done. The Committee therefore, recommends that a time frame should be decided and progress made by States be monitored regularly. The Committee hope that the Central Advisory Committee would ensure all States take adequate steps to implement the Rules. The Committee is also of the view that the Ministry of Labour has two models before it, one operational in Kerala and other in Tamil Nadu. The Committee therefore, recommends that the Ministry should examine both the models and see if any improvements in the existing provisions can be made at Central or State levels.

1.20 The Committee observed that the registration process was lengthy and the paper work involved discouraged the workers, majority of whom were illiterate and migrant. It felt that the duty attendance register could be used to issue certificates and to register the workers. The Committee, therefore, recommends that the paper work involved should be reduced to the minimum and steps be taken to ensure adequate publicity to the Rules. The feasibility of issuing identity cards with all India validity should also be studied and if possible be implemented. The Committee appreciates the proposal to extend Rashtriya Swasthya Bima Yojana to Building and Other Construction Workers as it is a progressive step and hopes steps would be taken to ensure its success. The district labour inspectors should also undertake field trips and register workers on the spot. The concerned 6 agencies should also be motivated to generate awareness about the rules amongst the workers as also to facilitate the registration so that they were covered under the rule for availing of the benefits.

1.21 During the course of the discussions the fact came up time and again that a number of States have still to frame welfare schemes for the workers as contemplated under the Act. This had on a number of occasions led to situation where the concerned agencies had deposited the cess collected by them but it was lying ideal in the absence of welfare schemes which the concerned State Governments have to frame. The Committee expresses its concern over the issue and hopes that the Ministry would make efforts to persuade the States to take suitable time bound steps in this regard. The Committee also suggests that the Ministry could frame Welfare Schemes which the States can adopt with suitable modifications.

1.22 The Committee notes that nowadays development of infrastructure has led to lots of construction activity, both in the private and public sector. These projects involve large number of construction workers and the well being of these workers is a cause of concern. The Committee, therefore, recommends that special measures/mechanism be put in place to ensure adequate implementation of the welfare measures contemplated for them under the Rules. Measures like awareness programmes for the workers may be organized to help them gain knowledge about their rights.

1.23 The Committee expresses its concern about the occupational diseases effecting the health of the workers and the need for ensuring adequate provisions to be made to protect the workers from such occupational diseases. The Committee, therefore, recommends that the Rules should also provide for safety measures to prevent such occupational diseases and provision for their treatment in case the worker gets affected.

1.24 The Committee has also noted that some of the organizations are not paying the cess contemplated under the State Act. The Committee, therefore, recommends that the concerned stake holders should resolve the issue of collection of cess under the State Act at the earliest so that the rights of the workers are not lost.

(II) State Emblem of India-(Regulation of Use) Rules, 2007—Implementation of 188th Report of the Committee

1.25 The Committee is happy to note that the Ministry of Home Affairs vide their Notification No.GSR 629(E) dated the 23rd July, 2010 have since notified the State Emblem of India (Regulation of Use) Amendment Rules, 2010 incorporating the suggestions/recommendations of the Committee as contained in its 188th Report as follows:

(i) By amending Rule 10(4) to provide that no professional qualification or private profession shall be mentioned with the name of the person authorized to use the emblem under these rules on the stationery, including the letter heads, visiting cards and greeting cards with the emblem printed or embossed on it;

(ii) By amending Explanation to Schedule I to provide that for the purpose of this Schedule, the expression ‘officer’ shall mean a gazetted officer’;

(iii) In Schedule II, in part II for paragraph (ii), the following paragraph shall be substituted, namely:— “(ii)(a) car of the Vice-President when he or his spouse is travelling by such vehicle; (b) the spare car following the car of the Vice-President;” (iv) By amending the Explanation to Schedule III to provide that for the purpose of this Schedule, “Government” includes the Central Government, State Governments, Administrations and other Offices mentioned in Schedule I.

7 (e) 194th Report

(i) The Haj Committee Rules, 2002 Amendment of Haj Committee Act and Rules 1.26 The Committee is happy to note that the Ministry of External Affairs is planning to bring out a new legislation on the Haj Committee. But the Committee is constrained to note that the Ministry has taken a very long time in coming out with the new legislation. The Committee, therefore, recommends that this should be carried out expeditiously, without any delay. The Committee also recommends that the Ministry should take steps to frame the rules simultaneously so that there is no further delay. While framing the rules, the Ministry should take note of the suggestions of the Committee which were agreed by the Committee vide their O.M. dated the 5th July, 2005 as follows:

(i) The Committee had suggested that there should be provisions in the Rule 7(2) rendering it obligatory on the part of the members to disclose any interest in the management of any business relating to pilgrims traffic, etc. The Ministry had responded that it would be a good idea to ascertain such information through individual declaration at the time of their selection/nomination to the Committee and agreed to explore the possibility of dealing with it in consultation with the Legislative Department of the Ministry of Law and Justice.

(ii) The Ministry agreed to delete the words “summarily” from Rule 7(3) which empowers the Chairperson to decide all points of order or procedure by amending the rule.

(iii) The Ministry agreed to amend Rule 11(1) by specifying the level of officers within Group ‘A’ for the purpose of TA/DA in order to make the provision more specific.

(iv) The Committee pointed out that the word “ordinarily” in Rule 16(1) tends to make its provision vague and suggested that it should be deleted. The Committee was of the view that there should be specific provisions in the rules relating to the appointment of the other officers and employees of the Committee and the terms and conditions of their service. The Ministry agreed to make amendments in the Rule accordingly. The Ministry also agreed to add the words “deputation or” between the words “on” and “temporary”.

(v) The Ministry accepted the Committee’s suggestion that it would be more appropriate if Rule 16(4) contains a schedule indicating the sanctioned posts for the Committee along with their scales of pay and agreed to amend the rule accordingly in consultation with the Legislative Department of the Ministry of Law and Justice.

(vi) The Ministry agreed to delete the words “ordinarily” from Rule 16(6) pertaining to granting of casual leave.

(vii) The Ministry admitted to a typographical error in Rule 20(3) and agreed to the Committee’s suggestion to amend the rule so as to make it applicable to the category mentioned in Rule 20(2)(b) also along with Rule 20(2)(a) and (c).

(viii) The Committee pointed to the contradictory provisions in Rule 26(1)(a) which provides for a special meeting to be held within three months before the end of the financial year for the purpose of preparation of budget and Rule 26(4) which provides that the estimate sanctioned by the Haj Committee is to be submitted to the Central Government before the first day of September, each year. The Ministry admitted to the typographical error and assured necessary amendments in the rules.

Goodwill delegation

1.27 The Committee notes that there is no provision for Goodwill Delegation in the Haj Committee Act and that no criteria is prescribed in the matter of selection of delegates. The Committee expresses serious concern about 8 the fact that selection of delegates is being done arbitrarily and as a means of political appeasement. The Committee also questions the need for sending such a large delegation. The Committee, therefore, recommends that either a provision should be made in the Act for Goodwill Delegation or the Ministry should come out with clear-cut rules/guidelines prescribing the criteria for selection of delegates. The Committee also notes that the Comptroller and Auditor General has made adverse comments regarding extravagant goodwill delegations. The Committee, accordingly, recommends that there should be a limit to the number of goodwill delegates so as not to incur unnecessary expenditure.

Private Tour Operators

1.28 The Ministry has conveyed that the quota allotted to the Private Tour Operators (PTOs) was part of the bilateral agreement between the Government of India and the Kingdom of Saudi Arabia and not out of the allocations made to the Central Haj Committee. The Committee finds it ridiculous that seats negotiated as part of bilateral agreement between the Government of India and the Kingdom of Saudi Arabia should be given away to non-state actors when the Haj Committee itself is not able to fulfil the application for seats. The Committee is of the view that considering the shortage faced by the Central Haj Committee, the entire country- quota negotiated by the Government of India should go to the Haj Committee. The Committee is of the opinion that if the quota given to PTOs is allocated to the Haj Committee, it will considerably ease the shortage currently faced by the Haj Committee. The Committee also notes that majority of the PTOs which were allocated the pilgrims quota were from one or two specific areas of the country. The Committee feels that PTOs should not be restricted to a particular area and should be equitably distributed as per the Muslim population. The Committee also finds that the system of allotment of Haj seats to the PTOs is without proper norms and guidelines and it lacks transparency. Many cases went to Courts on this count only. The Government should furnish a report on the issue of complaints of allotment of quota to PTOs. Also, new entrants are not encouraged and this seems to be the handiwork of strong lobby of existing PTOs. All these need to be attended to promptly and rectified.

Government Quota

1.29 The Committee disputes the argument of the Ministry that the government’s discretionary quota is utilized towards honouring the recommendations of the MPs/MLAs. The Committee expresses its anguish over the fact that letters/recommendations of M.Ps. for the Haj pilgrimage are not replied/responded to by the Ministry/Haj Committee. The Committee is unanimous in its opinion that replies should at least be sent to the Members on priority, and if necessary, with detailed explanation of reasons for not honouring the recommendations. The Committee recommends that the process of allotment of the government’s discretionary quota should be made more transparent.

Rules/Guidelines for issue of pilgrim passes

1.30 The Committee is not satisfied with the Ministry’s reply that Rule 30 of the Haj Committee Rules, 2002 covers the issue of pilgrim passes. The Committee notes that Rule 30 of the Haj Committee Rules, 2002 is mere reproduction of the provisions of Section 35(1) of the Act and does not prescribe anything substantial regarding the pilgrim passes. The Committee, therefore, recommends that such mere repetitions of the provisions of the Act in the Rules/Regulations should be avoided in future. The Committee, accordingly, recommends that suitable rules/guidelines should be framed on the issue of pilgrim passes.

Senior Citizens

1.31 The Ministry has indicated its agreement to give priority to such elderly applicants who have not ever performed Haj by assigning some weightage in Qurrah to repeat applicants who are elderly citizens over new applicants. The Committee recommends that the Ministry should come out with guidelines in this regard and start implementing it from the Haj 2011.

9 Accommodation

1.32 The Committee is happy to note that the Ministry is considering long-term accommodation arrangements for Indian pilgrims subject to local laws and regulations. The Committee expects the Government to frame clear guidelines in this regard. The Committee recommends hiring the accommodation on the long term basis nearest to Haram Sharif. Government should endeavour to provide accommodation to pilgrims above 60 in the green category and should see that all pilgrims above 65 must get accommodation in green category. The Committee also feels that there should be some permanent staff of Haj Committee of India at the CGI, Jeddah and be responsible for ensuring neat, clean and hassle free accommodation. The Committee strongly recommends that proper habitability survey of bathroom and toilet facilities at the places of residences and also proper functioning of lifts in multistoried buildings which cause hardships to women and the aged should be conducted by the consulate staff and Haj Committee before hiring such buildings and merely municipal certificates submitted by the building owners should not be relied upon. The Committee urges the Ministry to speed up the process without any further delay in this regard.

Complaint redressal

1.33 The Committee urges the Ministry as well as the Haj Committee to build a robust complaint redressal mechanism and see to it that complaints are redressed quickly and effectively. The Ministry should take necessary steps and keep a close watch as to whether complaints are being dealt with effectively by the Central and State Haj Committees.

Accounting and Auditing

1.34 The Committee observes that there is very elaborate arrangement for the financial administration provided under the statute. The Committee is unhappy to note that such important provisions relating to financial administration have been violated during the successive years and the Ministry failed to discharge its supervisory role. It seems that after the Act came into force the organization with Chief Executive Officer at the helm of affairs did not comprehend the importance of statutory provisions relating to financial administration. The Committee also feels that there should be a permanent Chartered Accountant in the organization along with designated staff to handle the accounts for efficient financial administration. The Committee recommends that Ministry or Haj Committee should appoint a Committee to have proper study by some professional organization to find out the problem areas in the working of Haj Committee Secretariat and request them to suggest quality improvement and efficient working of organization.

1.35 The Committee recommends that a suitable mechanism should be adopted so that delays in compilation of the accounts of the Haj Committee by the Chartered Accountants are avoided in future. The Committee also notes that the Comptroller and Auditor General has recently made adverse comments upon the functioning and finances of the Haj Committee. The Committee, therefore, recommends that sound financial practices and discipline should be followed by the Haj Committee so as to avoid the recurrence of such instances in future.

State-wise distribution of Haj quota

1.36 The Committee noted that the Haj Committee pilgrim quota was distributed among the States and Union Territories on the basis of Muslim population in the 2001 census. The Committee, however, felt that there were lots of discrepancies in the distribution of quota and that there was no transparency in the process. The Committee, therefore, recommends that there should be more transparency in the allocation of quota to the states and steps should be taken to eliminate discrepancies in this regard. The Committee also recommends that the data on the allocation of Haj quota and the population of Muslims in each state should be uploaded on the website of the Ministry of External Affairs as well as the Haj Committee of India as soon as they are allocation to ensure that there is complete transparency in this regard.

Facilities for Haj pilgrims

1.37 The Committee expressed serious shock and concern over the high figure of around 300 people dead during Haj 2010 and wanted the Government to make sure that no such instances are repeated in future. The

10 Committee felt that better services in the form of better medical services and better habitation should be provided to avoid the recurrence of such deaths in future.

Shifting of Haj headquarters

1.38 The Committee suggested that MEA should consider shifting the headquarters of the Haj Committee from Mumbai to Delhi. The Committee noted that in the past, most of the Hajis made their trip by ship and Mumbai being the most important port of India, it was made the capital of Haj Committee of India. However, at present, most of the Hajis travelled by flight and there being a Haj terminal in Delhi, made Delhi a more favourable choice. The Committee is of the opinion that Act should be suitably amended for the purpose.

Computerized database for Haj registration

1.39 The Committee directed the Ministry to consider having a computerized database where one can register for Haj. This database should be published on the website of the Ministry and/or the Haj Committee of India to make the process more transparent. The Committee was also of the opinion that preparations of Haj for a particular batch should start well in advance at least two years back so that pilgrims get adequate time to do required preparations.

Creation of separate cadre for Haj Committee Secretariat

1.40 The Committee recommends the Government to get professional study done by some reputed organization and assess the workload and professionalism in the Haj Committee. The Committee is of the view that middle level posts like Accounts Officer and Administrative Officers should be in the rank of at least Deputy Secretary to the Government of India so that the organization gets efficient person handling financial and personnel matters. The Government should endeavour to make the organization more professional and efficient by creating a separate cadre for Haj Committee Secretariat and may also upgrade some of the posts urgently.

Website of Haj Committee

1.41 The Committee has gathered that the website of the Haj Committee of India is not fully satisfactory. It needs to be developed further. Its e-mail system particularly collapses frequently. Some of the information given on the site is sometimes outdated. The site is not fully responsive, interactive and with online facility. The Committee therefore directs that the website of the Haj Committee should be developed properly.

(f) 195th Report

Statutory Orders Laid on the Table of the Rajya Sabha during its 222nd Session

1.42 The Committee examined the notifications containing Subordinate Legislation that were laid before the Rajya Sabha during the 222nd Session in the light of its recommendations as contained in its 131st, 135th and 152nd Reports regarding timely and proper laying of Notifications and reiterated this stand. (g) 196th Report (i) The Tea Marketing (Control) Order, 2003 1.43 The Committee notes that the Ministry of Commerce and Industry have since amended the Tea (Marketing) Control Order, 2003 as per its recommendations and notified the same as follows: (i) The Ministry vide its Notification No. S.O. 270 (E) dated the 27th February, 2004 (Annexure- IV) have published the Tea (Marketing) Control (Amendment) Order, 2004 wherein necessary amendment has been made by way of insertion of the words ‘not below the rank of Assistant Development Officer or Inspector’ after the words ‘any officer of the Board’ for the purpose of search and seizure; and

(ii) The Ministry vide its Notification No. S.O. 1170 (E) dated the 20th October, 2004 (Annexure-V) have published the Tea (Marketing) Control (Second Amendment) Order, 2004

11 where by Para 25 of the Order of 2003 which empowered Central Government to constitute a Committee on tea marketing has been deleted.

1.44 The Committee notes that the Tea (Marketing) Control Order, 1984 were replaced by the Tea (Marketing) Control Order, 2003, which prescribes for stricter regulation of the auctions, marketing activities and the calling for information from the persons engaged in this industry. The Committee, however, feels that the objectives of the Order did not warrant prescription of such high levels of regulation in the current era of autonomy and liberalization. The fact that the Tobacco Board is also monitoring the primary marketing of tobacco is no justification in the Committee’s opinion. The Committee, further, observes that certain provisions of the 2003 Order reportedly caused some concern to the buyer community with regard to their implementation especially the provisions relating to definition of buyer/manufacturer, his registration, payment for registration fee, submission of returns etc. The Committee notes that in order to remove the genuine difficulties of the various sections of the tea industry for the purpose of implementation and compliance of the new order, the Government has since brought amendments to the Tea (Marketing) Control Order 2003 by way of Tea (Marketing) Control (Amendment) Order, 2004. It is hoped that the amendments to Tea (Marketing) Control Order 2003 will help in removing the genuine difficulties faced by the buyers/sellers of tea.

(ii) The Prohibition of Sale of Cigarettes and Other Tobacco Products around Educational Institutions Rules, 2004

1.45 The Committee observes that tobacco product manufacturers increasingly focus on youth and children. Our efforts, therefore, should be to ensure that tobacco products are not easily available to children and that they are prevented from involuntary smoke as enshrined in the Preamble to the Act. The Committee, accordingly, hopes that the Ministry of Health and Family Welfare would consciously and diligently work towards this end so that the Rules serve the purpose of the law in true spirit apart from complying with our Treaty obligations under Framework Convention on Tobacco Control (FCTC). We ought to adopt all the international best practices in implementing the law in letter and spirit.

1.46 The Committee expresses its concern that children between the age group of 13-15 years are taking to smoking. The Ministry’s attempt for detoxification and to get the youngsters de-addicted from tobacco has not been very successful. The Committee notes that the Ministry is taking action for strict implementation of the rules under the Code of Criminal Procedure (Cr. P.C.). The Committee, however, feels that much more needs to be done to bring about the required behavioural change amongst youth and school going children by starting aggressive education and awareness programmes through media campaigns. The Committee noticed that after the meeting, a visible media campaign depicting dangerous effects of using tobacco products was started and warnings/pictures on cigarettes and chewing tobacco was made more prominent. It had no doubt had the desired impact. The Committee compliments the agencies—government and non-government involved in this and calls upon them to continue this effort with renewed vigour.

1.47 The Committee deprecates the laxity shown by the Ministry in laying the notification on the Table of the House. The Committee is not convinced by the reason advanced (non-availability of printed copies of the notification) and feels that the time of one year in procuring the printed copies was not at all acceptable. The Committee does not approve of such inordinate delay in laying the papers and directs that such delays should not recur in future. The Ministry must evolve suitable arrangements with the Ministry of Urban Development to avoid delays in preparing printed copies from Government of India Press in future.

1.48 The Committee notes that the Ministry have no objection in replacing the imperial system of measurement of distance of hundred yards as specified in the Act by the metric system which is more prevalent today and which would require amendment to the Act. The Committee hopes the Ministry would do that as and when amendment of the Tobacco Act, 2003 is considered.

1.49 The rules provide that the display board should be displayed at a conspicuous place outside the educational premises stating prominently that sale is prohibited within a radius of one hundred yards and that there should not be any objection from the educational institutions in prominently displaying the board. The Committee, accordingly, recommends the Ministry to ensure that this rule is strictly adhered to and the display boards are prominently displayed and directs the Ministry of Health and Family Welfare to furnish a status report on the

12 number of educational institutions in Delhi and NCR (National Capital Region) which are not complying with this rule. Regular inspections should be done in this regard.

1.50 The Committee is aware that peer pressure was the single factor for youngsters to take to smoking. The tobacco companies also, therefore, consciously work on the young people for two reasons. One, peer pressure is easier to build and two, it is fashionable. The Committee is concerned over the serious health hazards including high health costs of the treatment of cancer and cardiovascular diseases, of which 30% are cancer cases on account of tobacco. The Committee is happy that the Ministry has undertaken the “Global Adult Tobacco Survey and hopes that the Ministry would consciously and consistently work towards taking steps for effective monitoring and assessment at every stage of the implementation of the rules.

1.51 The Committee found that the monitoring of implementation of Rules left much to be desired. One can find shops and vendors selling tobacco products within the prohibited area of 100 yards from school/ educational institutional premises. The Committee feels that strict vigilance around the educational institutions was required. The Committee observes that punishment for violations or non observance of Rule has to be quick and significant, if it is to act as a deterrent. Then only, can the menace of tobacco be contained. The Committee notes that the Ministry of Health and Family Welfare does not have any objection and has assured to enhance the penalty for selling tobacco products within 100 yards from educational institutions from the existing Rs. 200/- as and when a comprehensive amendment of the Tobacco Act, 2003 could be considered.

1.52 The Committee is happy to note that an attempt has been made by the Ministry of Health and Family Welfare to provide alternative cropping system and alternative livelihood to the tobacco growers/farmers and the people working in tobacco industries who will be displaced. The Committee appreciates the Ministry’s efforts to select some vocations which can be beneficial for the small shopkeepers who are dependent for their livelihood on the sale of tobacco products. The Committee hopes that the Ministries of Health and Family Welfare, Labour, Rural Development, Industry and Commerce would coordinate with each other to find a workable solution in this regard to everyone’s satisfaction.

1.53 The Committee takes a serious view of the Ministry not furnishing information/replies on the concerns and queries raised by the Members of the Committee during it’s meeting despite two letters sent by the Committee Secretariat in this regard. The Committee, therefore, takes this opportunity to give specific directions in the matter so as to ensure prompt disposal of its references made to the Ministries/Departments/Organizations etc. The replies should be furnished positively within a month and in case it is not possible to do so within one month of the receipt of the reference in the Ministry, the Committee may be informed of the reasons of delay in writing and specific request be made to the Committee for the extension of time.

VI. Secretariat

1.54 The Committee Section (Subordinate Legislation) headed by two Assistant Directors constitutes the Secretariat of the Committee. A Joint Secretary, a Joint Director and a Deputy Director remained in charge of the Branch.

1.55 To assist the Committee in its work, the statutory orders laid on the Table of the Rajya Sabha, Bills passed by the Parliament, representations/references received from individuals/Ministries and the material received from the Ministries/Departments/Various non-official organizations and individuals were studied from which points were culled out and questionnaires for written replies/evidence were prepared for the use of the Committee.

1.56 The Secretariat collected material for on-the-spot studies and prepared study tour notes.

1.57 The work relating to drafting of Reports of the Committee and their considerations and approval along with their presentation, laying, printing and distribution was undertaken. The Secretariat also dealt with the work relating to the scrutiny of action taken notes received from the Ministries concerned on the recommendations contained in the Reports of the Committee and preparation of Draft Reports of the Committee on the Action Taken Reports.

13 ANNEXURE I (See Para 1.3) Details of the sittings of the Committee on Subordinate Legislation during the year 2011 Sl. Date Duration Subject No. Hrs-Mts. 1. 28.01. 2011 0.45 Consideration of memoranda on the following subjects: (i) The Cement (Quality Control) Order, 2003—Implementation of 174th Report of the Committee

(ii) The Central Motor Vehicles Rules, 1989—Implementation of 175th Report of the Committee

(iii) The Spices Grading and Marking Rules, 2005—Implementation of 176th Report of the Committee

(iv) The Colliery Control Rules, 2004

(v) AIIMS Regulations, 1999—Implementation of 178th Report of the Committee

2. 14.02.2011 1.50 Oral evidence of representatives of the Secretary (Economic Relations), Ministry of External Affairs; Secretary, Ministry of Civil Aviation and the CEO, Haj Committee of India on the Haj Committee Rules, 2002

3. 14.03.2011 0.30 To consider and adopt the 190th Report on Statutory Orders laid on the Table of Rajya Sabha during its 220th Session and 191st Report on certain rules/regulations under its examination

4. 05.04.2011 2.08 Oral evidence of the Secretary, Ministry of Health & Family Welfare (Department of Health) and Director, AIIMS on the AIIMS Regulations, 1999—Implementation of 178th Report of the Committee.

5. 21.04.2011 1.50 Oral evidence of the Secretary, Ministry of Tribal Affairs and representatives of the Ministry of Environment & Forests on the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Rules, 2007

6. 04.05.2011 2.00 Oral evidence of the Secretary, Ministry of Health & Family Welfare (Department of Health), representatives of Dental Council of India and Prof(Ms.) Naseem Shah, Chief Professor & Head, Centre for Dental Education & Research, AIIMS on the following regulations:

(i) Dental Council of India Postgraduate Diploma Course Regulations (Dental Materials), 2008

(ii) Dental Council of India Dental Hygienists Course Regulations, 2008

(iii) Dental Council of India Postgraduate Diploma Course Regulations, 2008

(iv) Dental Council of India Dental Mechanics Course Regulations, 2008

14 Sl. Date Duration Subject No. Hrs-Mts. 7. 19.05.2011 1.45 1. Oral evidence of the Secretary, Ministry of Commerce & Industry (Department of Industrial Policy & Promotion) on the Gas Cylinder Rules, 2004

2. Oral evidence of the Additional Secretary, Ministry of Women & Child Development on the Juvenile Justice (Care and Protection of Children) Rules, 2007

8. 08.07.2011 1.00 Review meeting on the study visit of the Committee to Bangalore, Cochin and Munnar from 19th to 25th June, 2011.

9. 20.07.2011 1.38 Oral evidence of the representatives of the Ministry of Mines, Geological Survey of India and the Indian Bureau of Mines on the Marble Development and Conservation Rules, 2002 and the Offshore Areas Mineral Concession Rules, 2006

10. 21.07.2011 2.15 Oral evidence of the Secretary, Ministry of Women & Child Development on the Protection of Women from Domestic Violence Rules, 2006 and National Commission for Protection of Child Rights Rules, 2006

11. 24.08.2011 0.45 To consider and adopt the draft 192nd, 193rd and 194th Reports of the Committee

12 03.11.2011 1.15 Review meeting of the study visit of the Committee to Mumbai and Goa from 25th September to 1st October, 2011

13 11.11.2011 1.00 Consideration of the following memoranda:

(i) Building Development Board (Supply of Building Materials) Bye-Laws, 2003

(ii) Representation from Shri A.Kalyanasundharam, Senior Vice- President, ITAT

(iii) Rail Land Development Authority (Constitution) Rules, 2007

(iv) The Electronic Furnishing of Return of Income Scheme, 2007

(v) The Service Tax (Provisional Attachment of Property) Rules, 2008

(vi) The Tax Return Preparer Scheme, 2008

(vii) The Income Tax (5th Amendment) Rules, 2006

(viii) The Petroleum and Natural Gas Regulatory Board (Levy of Fee and other Charges) Regulations, 2007

14 14.12.2011 1.00 To consider and adopt the draft 195th and 196th Reports of the Committee

15 CHAPTER - II COMMITTEE ON PETITIONS

I. Composition of the Committee

2.1 The Committee was constituted on 29th September, 2010 with the following composition:—

1. Shri Bhagat Singh Koshyari — Chairman 2. Shri Nandi Yellaiah 3. Shri Rajeev Shukla1 4. Shri Avinash Pande 5. Shri Balavant alias Bal Apte 6. Shri Rajaram 7. Shri Paul Manoj Pandian 8. Shri Veer Pal Singh Yadav 9. Shri P. Rajeeve 10. Shri

II. Petitions examined by the Committee

2.2 The Committee had examined the following petitions:—

Sl. From whom Countersigned Subject matter of the Date of Date of presentation/ No. received by petition admission by report to House and Hon'ble reference to the Chairman, Committee Rajya Sabha 1. Shri Sanjay Shri Rajeev Petition praying for 11.03.2011 18.03.2011 Prabhu and Chandrasekhar, grant for one rank one (By Shri Rajeev others r/o Member, Rajya pension to the armed Chandrasekhar, MP) Bangalore Sabha. forces personnel.

2. Shri Bharat — Petition praying for 28.11.2011 07.12.2011 Jhunjhunwala re-examination of the (By Secretary-General) and others, policy of making r/o tunnel-based Uttarakhand hydropower project.

3. Shri Rahul — Petition praying for 16.12.2011 19.12.2011 Gaur, r/o complete ban on the (By Secretary-General) Noida , Uttar manufacture of Pradesh spurious drugs in our country and other related issues.

III. Review of Work done

(a) Sittings of the Committee

2.3 During the period under review, the Committee held 19 sittings which lasted for 24 hours and 41 minutes. A statement showing the dates of the sittings of the Committee held during the period under review, the duration of the sittings and the main agenda taken up during those meetings is given in Annexure-II.

1 inducted into Council of Ministers w.e.f. 12th July, 2011 16 (b) Study Visits

2.4 During 2011, the Committee undertook the following study visits to interact with representatives of NGOs, Women's Groups, Medical and Legal Practitioners, Social Activists, etc. and the concerned State Governments on the petition praying for need to curb female foeticide and representatives of Konkan Railway Corporation Ltd. & IRCON alongwith representatives of Ministry of Railways (Railway Board) with reference to the petition praying for development of railway networks in Uttarakhand, Himachal Pradesh and other Himalayan:—

Sl. Dates Places visited Discussions Purpose No. 1. 18th to 25th Bhubaneswar, (i) Interaction with (i) In connection with January, 2011 Mumbai and Goa representatives of the examination of issues raised in NGOs, Women's the petition submitted by Dr. Groups, Medical and Ranjana Kumari and Dr. Manasi Legal Practitioners, Mishra of Centre for Social Social Activists etc. and Research, New Delhi praying for the concerned State urgent need to curb female Governments foeticide. representatives.

(ii) Interaction with (ii) In connection with representatives of the examination of issues raised in Konkan Railway the petition submitted by Shri Corporation Ltd along- Kedar Singh Fonia, MLA, with the representatives Uttarakhand and six others, all of Ministry of Railways resident of Uttarakhand on the (Railway Board). petition praying for development of railway network in Uttarakhand, Himachal Pradesh and other Himalayan States.

2. 24th to 27th Srinagar (i) Interaction with (i) In connection with examin- April, 2011 representatives of the ation of issues raised in the NGOs, Women's petition submitted by Dr. Groups, Medical and Ranjana Kumari and Dr. Manasi Legal Practitioners, Mishra of Centre for Social Social Activists etc. and Research, New Delhi on the the concerned State petition praying for urgent need Governments to curb female foeticide. representatives.

(ii) Interaction with (ii) In connection with representatives of the examination of issues raised in IRCON alongwith the the petition submitted by representatives of Shri Kedar Singh Fonia, MLA, Ministry of Railways Uttarakhand and six others, all (Railway Board). resident of Uttarakhand on the petition praying for development of railway network in Uttarakhand, Himachal Pradesh and other Himalayan States.

17 IV. Reports Presented

2.5 During the year 2011, the Committee presented four Reports to the House as per following details:- Sl. Report Date of Subject No. No. Presentation

1. 139th 24.08.2011 Petition praying for urgent need to curb female foeticide

2. 140th 07.09.2011 Petition praying for amendments in Section 498A of Indian Penal Code, 1860

3. 141st 19.12.2011 Petition praying for development of railway network in Uttarakhand, Himachal Pradesh and other Himalayan States

4. 142nd 19.12.2011 Petition praying for grant of One Rank One Pension to the Armed Forces Personnel

V. Summary of Recommendations:

2.6 Summary of important recommendations of the Committee made in its reports presented during 2011 is as under:—

(a) 139th Report on petition praying for urgent need to curb female foeticide

Strict implementation of PC & PNDT Act, 1994 and Rules thereunder 2. 7 The Committee observes that number of ultra sound machines has inverse relationship with trend of child sex ratio in any given area. The Committee desires that the District Appropriate Authority needs to be pro- active and devise area specific strategies including pregnancy tracking and close monitoring of ultrasound clinics, etc. to curb the incidence of female foeticide.

2.8 The Committee recommends strict regulation and control over import of ultrasound machines including sophisticated machines like Colour Doppler, etc. The import should be linked and enforced with respect to PNDT registration, so that the machines can be effectively tracked, after their import. The Committee recommends that the Medical Council of India (MCI) should take cognizance of doctors indulging in violation of PNDT Act and take swift action for cancellation of registration of the errant doctors. In Committee's view, an active involvement of MCI would act as a check on the unethical medical practitioners.

2.9 The Committee recommends that the Government may devise ways and means to see that the Medical Termination of Pregnancy (MTP) Act is not circumvented to give way to sex selective abortion. In Committee's view, the Government may incorporate effective checks in the MTP Act, so that each case that comes under this Act is thoroughly checked in the light of attendant facts and circumstances to rule out sex selective abortion.

Central Supervisory Board and State Supervisory Board 2.10 The Committee recommends that the CSB as well as SSBs should meet regularly as per the requirement of the law for better implementation of the provisions of PC&PNDT Act and Rules made thereunder which would have definite impact on the social problem of female foeticide. The Committee is unable to visualize any plausible reason for the CSB meeting at such long gaps when the Act prescribes two meetings in a year. The Committee would like the Ministry of Health and Family Welfare to look into the causes of such serious lapse and devise a mechanism so that the Boards at the Centre and the State level meet frequently to monitor and review the proper implementation of the PC&PNDT Act, 1994.

2.11 The Committee is constrained to note the low/steep fall in the CSR in States like Jammu and Kashmir, Maharashtra, Uttarakhand, etc. and districts like Jhajjar, Mahendragarh, Rewari, Sambha, etc. in the country. The Committee would like the Government to undertake specific studies to find out the real cause as to why 18 certain regions in the country are repulsive to girl child. Based upon the outcome of the study, the Government should come out with specific action plans to ensure that the worst affected States/Districts, as per the census 2011, get adequate support so that they come out of this deplorable situation. The Committee further recommends that the Central Government should undertake some special monitoring in respect of these States/Districts to ensure that the efforts show the right results.

2.12 The Committee takes note of preventive as well as incentive measures taken by various States to contain the problem of female feticide. Some of the States have introduced cash incentives for the families having one or more girl children for their education and marriage. Some other States have introduced prize scheme for the panchayats or villages which are trying to improve child sex ratio in their respective territories. The Committee recommends that those States where the child sex ratio is below the national average should take pro-active role in giving cash incentives as well as other incentive measures to the families for retention and education of the girl child.

Elimination of exchange of dowry in marriage 2.13 The Committee notes with concern that the CSR is conspicuously and continuously low in some of the affluent Northern States like Haryana, Punjab, Jammu and Kashmir and NCT of Delhi and UT of . Why is it so, needs to be considered. The evil of dowry is one of the vital causes leading to low status of girl child in the society. Unfortunately, the practice of dowry is still prevalent in these States/UTs, despite the dowry prohibition law of the Central Government. The Committee is unhappy that this law enacted in 1961 has been unable to check the evil of dowry in the society. The Committee, accordingly, recommends that Government should take immediate steps to review the toothless Dowry Prohibition Act, 1961 and ensure that it prescribes some mandatory obligations in the form of disclosures/joint declarations on the parties to the marriage (on both sides) so that they remain conscious and bound socially and legally to their resolves/declaration of not having asked for/given any dowry in marriage. Once this is brought into practice, the Committee hopes that the evil of dowry would start subsiding and the dislike for the girl child would taper off.

2.14 The Committee specifically recommends that the registration of marriage must be made mandatory and undertaking from both the parties should be maintained at that time to the effect that no dowry has been exchanged between those parties. The Committee understands that publicity of high expenses on marriages of rich people have cascading effects on the psyche of middle-class and lower-middle class citizens of the country. The tendency to show one’s status at the time of marriage ceremony has indirect impact on the issue of female feticide. The Committee recommends that the Ministry may find ways and means to regulate high expenses on marriage ceremony. Besides amendment to Dowry Prohibition Act, popularisation of the provisions of the Act as well as value of girl child in the society must be done regularly by involving the religious leaders, sports and film stars. The Committee suggests that appropriate study material about twin social evils of dowry and female foeticide as well as value of girl child may be included in the school curriculum to change the mindset of future generation to overcome this evil. Lessons learnt by young boys and girls at school against dowry can go a long way in eradicating this evil from the society in the course of time and inculcate equality between a boy and a girl child who when grown up are equal contributors at home and in society in their respective sphere.

Girl Child Education 2.15 The Committee recommends that benefit of fee waiver may be extended to all girl children in schools under CBSE and other boards. Private schools may also be impressed to give certain percentage of benefit of fee waiver to girl children in their schools in addition to concession given to students under Economically Weaker Section (EWS) category. The benefit of special consideration in admission in Kendriya Vidyalayas and Navodaya Vidyalayas may be extended to second girl child as in the case of concession of fee is extended to the second girl child in these schools.

(b) 140th Report petition praying for amendments in Section 498A of Indian Penal Code, 1860

2.16 The Committee recommends that the offence under Section 498A of IPC may continue to remain cognizable and non-bailable as any change in the law at this stage might go against the interest of the women

19 community in general. The Committee fears that any interference in the present law might reverse the social protection of women in their matrimonial home that has been built up so far.

Making the offence under Section 498A IPC compoundable 2.17 The Committee feels that in case of any marital discord which has reached the stage of a complaint under Section 498A, IPC, it would be better if the parties have the option of a compromise whereafter they can settle down in their lives appropriately for a better future rather than diverting their energies negatively by pursuing litigation. The Committee recommends to the Government to consider whether the offence under Section 498A, IPC can be made compoundable.

2.18 Having recommended that the offence under Section 498A of IPC should continue to be cognizable and non-bailable, the Committee strongly recommends that the ill-effects and misuse of the present legal provisions is also checked. The Committee fears that failure to do so might leave no option except to dilute the law by making the same non-cognizable and bailable.

Power to arrest 2.19 The Committee recommends that the provisions of Section 498A IPC should be suitably modified so as to define the term ‘relative’ which may exclude the arrest of small children and very elderly people and also distantly related persons who might not have a role in the commission of offence. The Committee would very much like to see that the powers of arrest on such complaints are exercised carefully and cautiously. The Committee notes that advisories have been issued by the Ministry of Home Affairs to all State Governments/ UT Administration for preventing the misuse of Section 498A IPC. The Committee would like these guidelines to be followed and implemented strictly in letter and spirit by the State Governments/UT Administration. The Committee further recommends that these guidelines should be adequately published by the State Governments/UT Administration and displayed publically in police stations so that the public is aware of their rights/liabilities and is not harassed on account of ignorance of law.

2.20 The Committee recommends that arrests under Section 498A, IPC should be done only with the written orders of the police officer of the level of DCP or equivalent and for acceptable reasons. The Committee also recommends that the State Governments/UT Administrations may issue necessary directions in this regard. The Committee in this context further recommends that the State Governments/UT Administrations may also keep an eye on the number of complaints registered under Section 498A, IPC and the arrests made as follow up by calling periodic data from their police Department for monitoring whether the provisions of the law are not being misused. In case the State Governments/UT Administrations fail to check the misuse there would be no option left but to dilute the offence, the Committee feels.

Counselling and Mediation 2.21 The Committee recommends that adequate provisions may be introduced in Section 498A to make the process of counselling compulsory before any arrests are made. The Committee further advocates that professional and trained family counselors should do the counselling in the Women's Cell so that frivolous cases are screened at the initial stage itself and Section 498A is invoked in rare cases. The Committee also recommends that the process of counselling which is being handled by the Police Department should be developed professionally by involving qualified counselors and reputed NGOs so that people have more confidence in the mechanism and they could be approached for intervention timely and arrive at some settlement without reaching the stage of complaint under Section 498A, IPC.

Time bound trial 2.22 The Committee recommends that a provision may be appropriately inserted under Code so that the offence under Section 498A may be tried in the fast track courts with a mandate to deliver judgment in time- bound manner.

20 Check on false complaints 2.23 The Committee recommends that Section 498A be amended so as to provide for specific penalty in case the complaint is found to be false or with some other ulterior motive. The Committee hopes that this would act as a deterrent because the complainant will be aware of the consequences which may follow if the complaint is found to be false by the Court, at any stage of the proceedings.

Dowry and Registration of Marriage 2.24 The Committee is of the considered view that a strong and effective anti dowry law can go along way in curbing matrimonial disputes. Accordingly, the Committee recommends that the existing Dowry Prohibition Act, 1961 may be strengthened so that no dowry is given in marriage and whatever gifts are exchanged in the marriage are listed out and acknowledged by the parties to the marriage in writing. The Committee feels that such a step by the Government would curb the dowry related matrimonial disputes which are substantial portion of the whole lot of disputes.

Juvenile in conflict with law (Section 498A IPC) 2.25 The Committee recommends that services of professionally trained family counselors may be utilized in the Crime Against Women Cell/Mahila Desk at every police station for mediation, conciliation of conflicts arising out of matrimonial relationship between warring spouses which would also take care of custody, care and protection of their children. The Committee reiterates that the recourse to Section 498A or arrest thereunder should not be taken before making an attempt for reconciliation through the assistance of professional family counselors.

2.26 The Committee recommends that there is a need to ensure that provision of Section 498A should not be invoked in case of juveniles. However in case of any aberrations, the police must ensure that the children are put under the care of Child Welfare Committee which would arrange for counselling and interim care of the children in child friendly environment.

(c) 141st Report petition praying for development of railway network in Uttarakhand, Himachal Pradesh and other Himalayan States

2.27 Notwithstanding the role of the Ministry of Railways as the nodal ministry, the Committee appreciates the effort made by the Planning Commission, Ministry of Finance and the Ministry of Defence which have been instrumental in addressing the issue of development of railway network in the Himalayan States. The Committee acknowledges the significant initiative of the Deputy Chairman, Planning Commission of India who has informed the Chairman, Committee on Petitions that following four projects have been identified as strategically important railway line projects from the defence point of view:

(i) Rupai - Parasuramkund (ii) Rishikesh - Karanprayag (iii) Tanakpur - Bageshwar (iv) Jammu - Akhnoor -Poonch 2.28 The Committee expresses its gratitude for the initiative taken by the Government for initiating the exercise to implement the finally listed four strategically important projects. The Committee hopes that the Prime Minister Office would coordinate the effort to build these strategically important railway lines so that they are implemented within the next five years. The Committee strongly recommends that the other strategically important railway lines as prioritised by the Ministry of Defence may also be taken up in the subsequent phases. The Committee recommends that the Ministry of Railways may submit a report in terms of the four above mentioned railway lines on quarterly basis till the completion of these projects so as the Committee is apprised of the status of these projects.

2.29 The Committee takes note of the recent developments regarding the Rishikesh-Karnaprayag railway line which was inaugurated recently. The Committee appreciates the fact that the process of construction of

21 Rishikesh-Karnaprayag railway line has been initiated as this is a very important strategic railway line. However, the Committee is of the opinion that this railway line should be extended up to Chamoli. Similarly the Tanakpur–Bageshwar railway line needs to be extended to Jaujilbi. The Committee recommends that the construction work of Rishikesh-Karnaprayag project and the Tanakpur-Bageshwar-Jaujibli Project may be initiated at the earliest, and the Ministry of Railways must take up the matter with the Ministry of Finance on urgent basis, so that the projects do not get delayed. The Committee strongly recommends for enhanced coordination between the Planning Commission and the Ministry of Finance so that these projects are executed in proper time frame without any cost escalation.

2.30 The Committee strongly recommends the Defence Ministry should be actively involved in atleast bringing the urgency of the strategically important railway lines to the notice of the Planning Commission, Ministry of Finance and the Cabinet Committee on Economic Affairs on a regular basis so that our infrastructure does not lag behind in our total defence preparedness. The Committee also recommends that commercial aspects should be treated as secondary when it comes to the question of national security. The Committee urges upon the Government to draw up a time bound plan of action to execute and implement the strategically important projects in coordination with the concerned Ministries of the Central Government, State Government and other stake holders in a time-ound manner.

2.31 The Committee is dismayed to note that the prolonged land acquisition process is responsible in many of the cases for the huge escalation in the cost of any particular project. The Committee recommends that the approach adopted by the Konkan Railway, which managed to resolve land acquisition issues expeditiously must be taken including provision of welfare means for land oustees.

2.32 The Committee strongly recommends that the Government should create a separate pool of resources in terms of a separate corpus fund instead of seeking funds from the State Governments. This should be a non- lapsable plan fund to be utilized for strategically important railway lines. The Committee deliberated at length on the issue of funding by the State Government and the resultant cost escalation due to delays in allocation of resources by the State Government. The Committee feels that the only way out is to declare these projects as 'National Projects' or 'strategically important projects' with dedicated financial linkage.

2.33 The Committee was extremely concerned to note that since 1996, under the Backward Areas Development Scheme, no progress has been made and no financial resources have been sanctioned for the backward areas. The Committee feels that providing total budgetary support for projects in backward areas may be difficult but at least phase-wise allocation may be made so that the rail projects may be initiated. The Committee feels that the Pradhan Mantri Rail Vikas Yojana (PMRVY) may be integrated with the Backward Area Development Scheme and instead of having multiple schemes only one Scheme preferably under the nomenclature of PMRVY may be made, for which a fund should be created to implement the backward area and the socially desirable projects. The Committee appreciates the issue regarding the fiscal constraints as far as funding of strategically important railway line is concerned and advocates that some sort of a methodology like imposing a cess could be done on lines of PMGSY so that a corpus fund could be created to fund the strategically important lines.

(d) 142nd Report petition praying for grant of One Rank One Pension to the Armed Forces Personnel

2.34 The Committee takes note of the fact that a sum of 1300 crores is the total financial liability for the year 2011-12 in case OROP is implemented fully for all the defence personnel in the country across the board. The Committee is informed that out of this, 1065 crores would go to retirees belonging to Post Below Officer Ranks (PBOR) while the Commissioned Officers would be getting the remaining i.e. 235 crores. The Committee feels that 1300 crores is not a very big amount for a country of our size and economy for meeting the long pending demand of the armed forces of the country. The Committee understands that this 1300 crores is the expenditure for one year which might increase at the rate of 10 per cent annually. Even if it is so, the Committee does not consider this amount to be high, keeping in view the objective for which it would be spent.

22 2.35 The Committee is satisfied to note the efforts made by Government over the period to meet the demand of OROP of defence personnel. It is heartening to note that Government has on the basis of the recommendations of Cabinet Committee, spent 2200 crores for the purpose of meeting the grievance of defence pensioners. The net result is that while the demand for OROP stands almost met in the case of PBOR, the officers’ category remains much behind the target. Keeping in view the fact that Officers constitute a small proportion of the entire defence force and only a small proportion of the funds needed, i.e., 235 crores out of 1300 crores stand allocated to their share for implementing the demand in the officers’ category, the Committee strongly recommends that this may be implemented so as to keep up the morale of the service. The fact that there are large numbers of vacancies in the defence services at the officer’s level corroborates the requirement of suitable corrections in the officer’s category and make their service conditions more acceptable and attractive.

2.36 The Committee is not convinced with the version of the Ministry of Finance that the grant of OROP to the defence personnel would eventually generate similar requests from the civilian work force of the country under the Central Government and the State Governments. The Committee feels so because of the quite different terms and conditions of service of the two different categories of employments. The terms and conditions of armed forces are tougher and harsher than the civilian Government employee. There are restrictions of fundamental rights to the armed forces. Risk to life of a soldier is always higher as they work under severe strain and sense of insecurity with undefined and unlimited working hours. Transfers and dislocation alongwith bleak career prospects are other disadvantages attached with the armed forces. Their family life is also non-comparable with that of civilian Government employee. The Armed Forces are also subjected to Court Martial system for the shake of military discipline. In view of aforesaid uniqueness of Armed Forces it can not be equated with a civilian Government employee. Further, the Committee would not like this argument or apprehension to stand in the way of the legitimate and fair demand of the defence personnel. On the issue of returning of service medals by the defence personnel of our country to the President of India in view of the Governments' apathetic attitude towards their demand of grant of OROP, the Committee is of the view that our defence personnel should not feel alienated to this extent again and they are not forced to surrender their hard earned service medals in this manner to exhibit their discontent with the government policies.

2.37 The Committee feels that the decision of the Government to bring our defence personnel on the pattern of the civilians with regard to their pay, pension, etc. (from Third Central Pay Commission onwards) is not a considered decision which has caused hardship to the defence personnel and has given birth to their demand for OROP. The Committee understands that before the Third Central Pay Commission, the defence personnel were getting their pay/pension on the basis of a separate criteria unconnected with the criteria devised for the civilian work force. That criteria acknowledged and covered the concept of OROP which has been given up after the Third Central Pay Commission.

2.38 The Committee is not convinced with the hurdles projected by the Ministry of Defence (D/o Ex- Servicemen Welfare) in implementing of OROP for defence personnel. They have categorized the hurdles into administrative, legal and financial. The financial aspect has already been dealt with by the Committee. So far as the administrative angle is concerned, the Committee is given to understand that all the existing pensioners/ family pensioners are still drawing their pension / family pension based upon the lawfully determined pension / family pension. In that case, revision of their pension / family pension, prospectively, as a one time measure should not pose any administrative hurdle. So far as the legal aspect is concerned, the Committee is not convinced by the argument put forth against the implementation of OROP because the pension/family pension is based upon the service rendered by personnel while in service and comparison of services rendered during two sets of periods does not seem to be of much relevance. If seen from a strict angle, in each set of periods, the army officer performed the duties attached to his post and it may not be proper to infer that the officers who served at a later period performed more compared to the officers of earlier period. On the contrary, facts tilt towards treating past pensioners/family pensioners at par with the more recent ones.

2.39 The Committee further takes note of the fact that the reduction of around 26 pay scales into IV pay bands on the recommendations of the Sixth Central Pay Commission has aggravated the grievances of defence personnel. For example, after the Sixth Central Pay Commission, officers from the level of Lt. Colonel and

23 above fall in a single pay band i.e. pay band IV, carrying pay scale of 37,400 to 67,000. It means that defence retirees of earlier years from different ranks would get pension with reference of the minimum of the pay band irrespective of the fact whether they held much higher rank of Major General or Lt. General when they retired. Thus, under the existing dispensation, pursuant to the Sixth Central Pay Commission, the past retirees, particularly those, who retired from senior level posts, remain at a disadvantaged position. Keeping in view all the above factors, the Committee strongly recommends that Government should implement OROP in the defence forces across the board at the earliest and further that for future, the pay, allowances, pension, family pension, etc. in respect of the defence personnel should be determined by a separate commission so that their peculiar terms and conditions of service, the nature of duties they are required to perform, etc., which are quite different from the civilian work force, are duly taken into account while taking decision on the same.

VI. Secretariat

2.40 The Committee Section (Petitions) which provides secretarial assistance to the Committee on Petitions has presently a strength of one Assistant Director, three Assistants and one Attendant. A Joint Secretary, a Joint Director and a Deputy Director remained in-charge of the Branch.

2.41 To assist the Committee in its work, the background materials and other documents received from the Ministries/Departments/various non-governmental organizations and individuals was culled out for preparing questionnaires for written replies/evidence/report for the use of the Committee. Material from unconventional sources such as internet, news clippings, etc. were also utilised for examination and report on the subject.

2.42 The Secretariat also collected material from on-the-spot study visits of the Committee and judiciously utilized the inputs in the preparation of the Report of the Committee.

2.43 The Secretariat dealt with the work relating to the scrutiny of action taken notes received from the Ministries concerned on the recommendations contained in the Reports of the Committee.

24 ANNEXURE-II (See Para 2.3)

Details of the sittings of the Committee on Petitions during the year 2011

Sl. Date of Duration Subject No. Meeting Hrs-Mts. 1. 04. 01. 2011 1.40 (i) to record oral evidence of the Secretary, Ministry of Health and Family Welfare, on the petition praying for urgent need to curb female foeticide; and

(ii) to hear the petitioner on the petition praying for protection of interest of bonafide Indian national residing in Sikkim prior to its merger with India in 1975.

2. 04. 02.2011 1.10 To record oral evidence of the Secretary, Ministry of Women & Child Development, on the petition praying for urgent need to curb female foeticide.

3. 17.02.2.2011 1.10 To record oral evidence of the Secretary, Ministry of Home Affairs, on the petitions praying for protection of interest of bonafide Indian national residing in Sikkim prior to its merger with India in 1975 and amendments in Section 498A of the IPC, 1860.

4. 24.03.2011 1.10 To recording evidence of non-official witness on the issues raised in the petition praying for urgent need to curb female foeticide.

5. 08.04.2011 2.00 To record oral evidence in the Secretaries of the Ministries of Defence and Finance on the petition praying for development of railway networks in Uttarakhand, Himachal Pradesh and other Himalayan States.

6. 04.05.2011 1.55 To hear the petitioner on the petition for grant of one rank one pension to the armed forces personnel.

7. 16.05.2011 3.00 To hear the organization and individuals of the petition praying for grant of one rank one pension to the armed forces personnel.

8. 27.05.2011 1.05 To record oral evidence in the Secretary, Ministry of Defence and Finance, on the petition praying for grant of one rank one pension to the armed forces personnel.

9. 03.06.2010 1.40 To hear certain organisation/individuals on the petition praying for amendments in Section 498A of the IPC, 1860.

10. 29.06.2011 1.50 To hear certain organization/individuals on the petition praying for amendments in Section 498A of the IPC, 1860.

11. 15.07.2011 1.15 To record oral evidence of the Secretary (Expenditure), Department of Expenditure (M/o Finance) and Secretary, Department of Pensions and Pensioner's Welfare (M/o Personnel Public Grievances and Pensions) on the petition praying for grant of one rank one pension to the armed forces personnel.

25 Sl. Date of Duration Subject No. Meeting Hrs-Mts. 12. 25.07.2011 0.56 To hear the representatives of National Commission for Women and National Commission for Protection of Child Rights on the petition praying for amendments in Section 498A of the IPC, 1860.

13. 01.08.2011 1.50 (i) To record oral evidence of the Secretary (Expenditure), Department of Expenditure (M/o Finance), on the petition praying for grant of one rank one pension to the armed forces personnel; and

(ii) To record oral evidence of the Secretary, Ministry of Women and Child Development, on the petition praying for amendments in Section 498A of the IPC, 1860.

14. 18.08.2011 0.45 To consider and adopt the draft 139th Report on the petition praying for urgent need to curb female foeticide.

15. 30.08.2011 0.15 To consider and adopt the draft 140th Report on the petition praying for amendments in Section 498A of the IPC, 1860.

16. 27.09.2011 0.30 to consider Memorandum No. 2/2011 regarding inordinate delay in submission of revised Action Taken Report (ATR) by Department of Financial Services (M/o Finance) on Hundred Thirty-sixth Report on the petition praying for benefits of pay revision and pension to the VRS optees and retirees of IFCI.

17. 18.10.2011 1.30 (i) To record oral evidence of the Secretary, Department of Financial Services (M/o Finance) alongwith CEO & MD, IFCI Ltd. on Action Taken by Government on its Hundred and Thirty- sixth Report on the petition praying for benefits of pay revision and pension to the VRS optees and retirees of IFCI; and

(ii) To record oral evidence of the Chairman, Railway Board, Ministry of Railways, on the petition praying for development of railway networks in Uttarakhand, Himachal Pradesh and other Himalayan States.

18. 14.11.2011 0.45 To record oral evidence of the Secretary, Department of Ex- servicemen Welfare (M/o Defence) on the petition praying for grant of one rank one pension to the armed forces personnel.

19. 16.12.2011 0.15 To consider and adopt the draft following Reports:-

(i) 141st Report on the petition praying for development of railway networks in Uttarakhand, Himachal Pradesh and other Himalayan States; and

(ii) 142nd Report on the petition praying for grant of one rank one pension to the armed forces personnel

26 CHAPTER-III COMMITTEE ON GOVERNMENT ASSURANCES

I. Composition of the Committee

3.1 The Committee was constituted on 29th September, 2010 with the following composition:—

1. Shri - Chairman 2. Shri Parvez Hashmi 3. Shri Shadi Lal Batra 4. Shri 5. Shri Ramdas Agarwal 6. Shri Avinash Rai Khanna 7. Shri Veer Singh 8. #Shri Moinul Hassan 9. Shri T.M. Selvaganapathi 10. Shri Birendra Prasad Baishya

# w.e.f. 06.12.2010

27 II. Subjects selected for Examination 3.2 The Committee on Government Assurances examined the assurances pertaining to the following subjects:-

Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

1. USQ No. 2847 dated 19.04.2005 Finance The Committee acceded to the regarding corruption in revenue request of the Ministry for Department. dropping of the assurance and the assurance was dropped.

2. (i) SQ No. 264 dated 21.03.2005 Tribal Affairs The Committee did not accede to regarding comprehensive policy for the request of the Ministry for tribal welfare (ii) USQ. No. 180 dated dropping of the assurance and 20.02.2006 regarding National Policy for directed that the Ministry be asked the welfare of tribals and (iii) USQ No. to expedite the formulation of the 2128 dated 21.03.2005 regarding policy as the finalization of the National Policy for empowering the policy is in advanced stage and tribals. furnish a Status Note in matter.

3. (i) USQ No. 115 dated 23.11.2006 Coal The Committee did not accede to regarding Death of Coal Miners, (ii) the request of the Ministry for USQ No. 875 dated 30.11.2006 dropping of the assurance and regarding Miners killed at the Nagda directed that the Ministry be asked Mine and (iii) USQ. No. 880 dated to furnish a Status Note giving the 30.11.2006 regarding Death of Coal progress made in the matter. Miners.

4. USQ. No. 2172 dated 03.09.2007 Human The Committee did not accede to regarding New Education Policy. Resources the request of the Ministry for Development dropping of the assurance and directed that the Ministry be asked to furnish a Status Note giving the specific reply in the matter.

5. USQ. No. 881 dated 28.11.2007 Defence The Committee acceded to the regarding Preparation for making Indian request of the Ministry for Soldiers Hi-Tech. dropping of the assurance and the assurance was dropped.

6. USQ. No. 102 dated 27.02.2008 Commerce & The Committee acceded to the regarding Scam in import of pulses. Industry request of the Ministry for dropping of the assurance and the assurance was dropped.

7. USQ. No. 3354 dated 24.04.2008 Road Transport The Committee did not accede to regarding progress of work of NHs. & Highways the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note giving the progress made in the matter.

28 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

8. USQ. No. 275 dated 18.02.2009 Defence The Committee acceded to the regarding Delay in Acquisition of New request of the Ministry for Military Hardware. dropping of the assurance and the assurance was dropped.

9. USQ. No. 242 dated 03.07.2009 Railways The Committee acceded to the regarding Rail Coach Factory in Kerala. request of the Ministry for dropping of the assurance and the assurance was dropped.

10. USQ. No. 550 dated 08.07.2009 Road Transport The Committee acceded to the regarding MOU for NHDP projects. & Highways request of the Ministry for dropping of the assurance and the assurance was dropped.

11. USQ No. 1659 dated 20.07.2009 Environment & The Committee acceded to the regarding National Plan on air pollution. Forests request of the Ministry for dropping of the assurance and the assurance was dropped.

12. (i) USQ No. 990 dated 13.07.2009 Power The Committee acceded to the regarding rural electrification in request of the Ministry for Rajasthan and (ii) USQ No. 2548 dated dropping of the assurance and the 27.07.2009 regarding rural assurance was dropped. electrification.

13. (i) USQ No. 3445 dated 04.08.2009 and Human The Committee acceded to the (ii) USQ No. 242 dated 20.11.2009 Resource request of the Ministry for regarding CBI cases against AICTE Development dropping of the assurance and the members. assurance was dropped.

14. USQ No. 3704 dated 07.08.2009 Consumer The Committee did not accede to regarding Monitoring agency to look Affairs, Food & the request of the Ministry for after the functioning of PDS. Public dropping of the assurance and Distribution directed that the Ministry be asked to furnish a Status Note giving the progress made in the matter.

15. (i) USQ No. 2899 dated 15.12.2009 Rural The Committee did not accede to regarding redefining of BPL criteria (ii) Development the request of the Ministry for SQ No. 277 dated 16.03.2010 regarding dropping of the assurance and inclusion of Minority in BPL List, (iii) directed that the Ministry be asked USQ No. 2750 dated 20.04.2010 to furnish a Status Note giving the regarding identification of BPL families progress made in the matter and and (iv) USQ No. 4286 dated 04.05.2010 also furnish the comments/ regarding fresh survey for BPL families. uggestions received by them from the States and Union Territories in this regard.

29 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

16. (i) USQ. No. 984 dated 17.7.1992 Urban The Committee did not accede to regarding booking of plots etc. Development the request of the Ministry for dropping of assurances and directed (ii) USQ. No. 1327 dated 18.6.1998 that the Ministry be asked to regarding cheating by reputed building furnish a Status Note in the matter. construction companies of Delhi (iii) USQ. No. 2159 dated 15.3.1999 regarding checking of nefarious activities of builders/dealers in Delhi (iv) USQ. No. 3070 dated 19.4.1999 regarding the Delhi Real Estate Development Regulation Bill (v) USQ. No. 1148 dated 2.3.2006 regarding Bill to check illegal constructions

17. USQ. No. 118 dated 3.12.2003 regarding Personnel, The Committee acceded to the medium of examinations Public request of the Ministry for Grievances and dropping of the assurance and the Pensions assurance was dropped.

18. (i) USQ. No. 813 dated 1.8.2006 Petroleum and The Committee acceded to the regarding Import of LNG from Iran and Natural Gas request of the Ministry for dropping of the assurances and the (ii) SQ. No. 560 dated 23.5.2006 assurances were dropped. While regarding Iran-Pakistan-India Pipeline acceding to the request, the Committee felt that the argument of involving other sovereign countries and issue beyond the control of the Government came too late as these facts were very much known to the Ministry from the day one. The request is made after taking a number of extensions and lapse of four years and had it been a little earlier, the precious time of the Committee could have been saved.

19. (i) USQ. No. 209 dated 27.7.2007 Heavy The Committee acceded to the regarding financial crunch in HCL Industries and request of the Ministry for Public dropping of the assurances and the (ii) USQ. No. 4036 dated 23.5.2006 Enterprises assurances were dropped. regarding visit of Chinese delegation to HCL (iii) USQ. No. 1868 dated 21.7.2009 regarding study for restructuring of HCL and (iv) SQ. No. 179 dated 1.12.2010 regarding revival of HCL

30 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 20. (i) USQ. No. 572 dated 4.3.2008 Petroleum and The Committee acceded to the regarding transit fee for Indo-Iran Gas Natural Gas request of the Ministry for pipeline dropping of the assurances and the assurances were dropped. While (ii) USQ. No. 1187 dated 11.3.2008 acceding to the request the regarding meetings on Indo-Iran Gas Committee felt that the argument of Pipeline involving other sovereign countries (iii) USQ. No. 1598 dated 4.12.2007 on and issue beyond the control of the Indo-Iran Gas pipeline project Government came too late as these facts were very much known to the (iv) USQ. No. 2530 dated 27.7.2009 Ministry from the day one. The regarding India-Iran gas pipeline and request is made after taking a (v) USQ. No. 801 dated 24.2.2009 number of extensions and lapse of regarding finalization of IPI pipeline four years and had it been a little agreement earlier, the precious time of the Committee could have been saved. 21. USQ. No. 567 dated 22.10.2008 Home Affairs The Committee acceded to the regarding caste and class conflicts in request of the Ministry for Rajasthan dropping of the assurance and the assurance was dropped. 22. USQ. No. 436 dated 8.7.2009 regarding Commerce -do- WTO negotiation on agriculture and Industry 23. USQ. No. 2008 dated 22.7.2009 Home Affairs The Committee did not accede to regarding reviewing working of NGOs the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter. 24. USQ. No. 2597 dated 18.8.2010 Defence The Committee acceded to the regarding implementation of Kargil request of the Ministry for Review Committee dropping of the assurance and the assurance was dropped. 25. USQ. No. 2599 dated 18.8.2010 Defence -do- regarding Artillery Guns for army 26. (i) USQ. No. 1338 dated 2.12.2002 and Urban The Committee acceded to the (ii) USQ. No. 39 dated 15.11.2007 Development request of the Ministry for regarding Delhi Rent Control Act, 1995 dropping of the assurance and the assurances were dropped. 27. USQ. No. 436 dated 25.4.2005 regarding Minority -do- white paper on minority communities Affairs 28. USQ. No. 4381 dated 4.5.2005 regarding Defence The Committee did not accede to corruption in armed forces the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

31 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 29. (i) SQ. No. 96 dated 4.3.2008 regarding Civil Aviation (i) The Committee acceded to the Greenfield airports in Rajasthan and request of the Ministry for Andhra Pradesh and dropping of the assurance given in reply to SQ.96 dated 4.3.2008 (ii) USQ. No. 483 dated 4.3.2008 regarding new airports project in regarding Greenfield airports in Rajasthan and Andhra Pradesh and Rajasthan and Uttar Pradesh the assurance was dropped. (ii) The Committee did not accede to the request of the Ministry for dropping of the assurance given in reply to USQ. No. 483 dated 4.3.2008 regarding new airports project in Rajasthan and Uttar Pradesh and directed that the Ministry be asked to furnish a Status Note in the matter.

30. SQ. No. 342 dated 16.4.2008 regarding Home Affairs The Committee did not accede to barbed wire fencing along international the request of the Ministry for border dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

31. USQ. No. 929 dated 24.10.2008 Steel The Committee acceded to the regarding Claims of the SAIL over the request of the Ministry for leaseholds on Chiria Iron Ore Mines dropping of the assurance and the assurance was dropped.

32. USQ. No. 301 dated 18.2.2009 regarding Home Affairs The Committee did not accede to NGOs receiving foreign funds the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

33. (i) USQ. No. 2519 dated 16.4.2008 Defence The Committee acceded to the regarding achievements of DRDO in request of the Ministry for non-strategic areas dropping of the assurances and the assurances were dropped. (ii) USQ. No. 3127 dated 23.4.2008 regarding recommendations of P. Rama Rao Committee on DRDO and (iii) 3131 dated 23.4.2008 regarding report of external review committee of DRDO

34. USQ. No. 274 dated 24.2.2010 regarding Textiles The Committee did not accede to NTC mill gutted in fire the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

32 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

35. USQ. No. 188 dated 20.11.2007 Civil Aviation The Committee did not accede to regarding casuality in the security area at the request of the Ministry for Delhi Airport dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

36. USQ. No. 826 dated 21.7.2004 regarding Home Affairs The Committee acceded to the status of the amendment of article 371 of request of the Ministry for the Constitution dropping of the assurance and the assurance was dropped.

37. (i) SQ. No. 264 dated 21.3.2005 Tribal Affairs The Committee did not accede to regarding comprehensive policy for the request of the Ministry for tribal welfare dropping of the assurances and directed that the Ministry be asked (ii) USQ. No. 2128 dated 21.3.2005 to furnish a Status Note in the regarding National Policy for matter. empowering the tribals

38. USQ. No. 178 dated 26.7.2006 regarding Commerce The Committee acceded to the single window clearance mechanism for and Industry request of the Ministry for manufacturing units dropping of the assurance and the assurance was dropped.

39. USQ. No. 917 dated 30.11.2006 External Affairs -do- regarding inclusion of Hindi language in UNO

40. USQ. No. 352 dated 21.10.2008 Culture -do- regarding financial irregularities in Victoria Memorial

41. USQ. No. 1059 dated 10.12.2008 Rural -do- regarding fake bank guarantee by Development contractors in Himachal Pradesh

42. SQ. No. 116 dated 24.10.2008 regarding Railways -do- Train Protection Warning System

43. (i) USQ. No. 609 dated 20.2.2009 Health and The Committee did not accede to regarding investment on health education Family Welfare the request of the Ministry for and urban amenities dropping of the assurances and (ii) USQ. No. 2103 dated 19.12.2008 directed that the Ministry be asked regarding Sarva Swasthya Abhiyaan to furnish the Status Note in the (iii) USQ. No. 1588 dated 17.7.2009 matter detailing the efforts made so regarding Health Mission for people of far in regard thereto. urban slums (iv) USQ. No. 3730 dated 7.8.2009 regarding National Urban Health Mission

33 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

44. USQ. No. 821 dated 10.7.2009 regarding Railways The Committee acceded to the coach manufacturing unit in Uttar request of the Ministry for Pradesh dropping of the assurance and the assurance was dropped.

45. USQ. No.2366 dated 24.7.2009 Health and -do- regarding AIIMS like institution in Family Welfare Bundelkhand

46. (i) USQ. No. 1888 dated 15.3.2010 Information The Committee did not accede to regarding MRP for Cable connection and the request of the Ministry for and Broadcasting dropping of the assurances and directed that the Ministry be asked (ii) USQ. No. 2471 dated 27.7.2009 to furnish the Status Note in the regarding entertainment tax evasion by matter Cable Operators

47. USQ. No. 2242 dated 15.4.2010 Tourism The Committee acceded to the regarding Southern Splendour Train request of the Ministry for Project in Andhra Pradesh dropping of the assurance and the assurance was dropped.

48. USQ. No. 2931 dated 22.4.2010 Communications -do- regarding Foreign Exchange rule and Information violation in Telecom Companies Technology

49. USQ. No. 2686 dated 18.8.2010 Road Transport -do- regarding amendments to National and Highways Highways Act

50. USQ. No. 2450 dated 1.12.2010 Road Transport -do- regarding six laning of all NHs passing and Highways through Vadodara-Mumbai and Ahmedabad to Rajkot

51. USQ. No. 1822 dated 9.12.2002 Mines The Committee did not accede to regarding post closure settlement of the request of the Ministry for BALCO dropping of the assurance and observed that there was no change in the status of the matter since the last communication received from the Ministry in September, 2009. The Committee accordingly directed that the Ministry be asked to furnish the details of steps taken in the matter since September, 2009 till date.

52. USQ. No.4166 dated 14.5.2007 Human The Committee acceded to the regarding setting up Madarsa Board Resource request of the Ministry for Development dropping of the assurance and the assurance was dropped.

34 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

53. USQ. No. 2178 dated 9.12.2009 Commerce The Committee acceded to the regarding separate FTAs with Malaysia, and Industry request of the Ministry for Thailand and Indonesia dropping of the assurance and the assurance was dropped.

54. USQ. No. 3696 dated 7.8.2009 Chemicals The Committee did not accede to regarding review of subsidy and the request of the Ministry for disbursement method of fertilizers Fertilizers dropping of the assurance. The Committee observed that in so far as the irregularities in Bihar are concerned the High Court vide its order dated 19.08.2008 ordered that Secretary, Department of Fertilizers in consultation with Chief Secretary, Government of Bihar should constitute a Committee for the purpose of verification of sales of fertilizers whereas the Department of Fertilizers requested the State Government of Bihar on 29.02.2008 to constitute the Committee. The Committee would like to know the reasons for not following High Court’s Order. The Committee further observed that the Committee so constituted was to complete the task in 6 months. However, even after 3 years the task is not completed. The Committee directed that the Ministry may be asked to furnish Status Note with particular reference to the above points.

55. USQ. No. 2156 dated 9.12.2009 Commerce The Committee acceded to the regarding no consensus in meeting of & Industry request of the Ministry for WTO Members dropping of the assurance and the assurance was dropped.

56. USQ. No. 481 dated 2.3.2010 regarding Finance The Committee did not accede to Amendment in FRBM guidelines the request of the Ministry for dropping of the assurance. The Committee observed that such a reply from the Ministry was not acceptable. It further observed that when the recommendations of the Finance Commission had been accepted by the Ministry, they should expedite the issue. The Committee directed that the Ministry be asked to furnish the Status Note in the matter.

35 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 57. USQ. No. 1237 dated 9.3.2010 regarding Finance The Committee acceded to the World Bank Assistance for Gujarat request of the Ministry for dropping of the assurance and the assurance was dropped. 58. USQ. No.325 dated 28.7.2010 regarding Home Affairs The Committee did not accede to pilferage of ammunition from CRPF the request of the Ministry for Group centre at Rampur dropping of the assurance and directed that the Ministry be asked to furnish the Status Note in the matter. The Committee observed that such a defence that the matter falls under the State list should have been taken by the Ministry at the initial stage when the question was admitted and not acceptable now. 59. USQ. No. 2464 dated 1.12.2010 Road Transport The Committee acceded to the regarding upgradation of 3700 and Highways request of the Ministry for kilometers of National Highways dropping of the assurance and the assurance was dropped. 60. USQ. No.4865 dated 9.5.2005 regarding Information and The Committee acceded to the Advertisement of Function in Panchjanya Broadcasting request of the Ministry for dropping of the assurance and the assurance was dropped. 61. SQ. No. 630 dated 10.5.2000 regarding Home Affairs The Committee acceded to the recruitment of personnel for Paramilitary request of the Ministry for Forces dropping of the assurance and the assurance was dropped. 62. (i) SQ. No. 264 dated 21.3.2005 Tribal Affairs The Committee did not accede to regarding comprehensive policy for the request of the Ministry for tribal welfare dropping of the assurances and (ii) USQ. No. 2128 dated 21.3.2005 reiterated its earlier decision that regarding National Policy for the Ministry may expedite the empowering the tribals formulation of the Policy as it is in advanced state and directed that the (iii) USQ. No. 180 dated 20.2.2006 Ministry be asked to furnish the regarding National Policy for the welfare Status Note in the matter. of tribals and (iv) USQ. No. 444 dated 3.3.2008 regarding draft policy on scheduled tribes 63. USQ. No. 272 dated 27.7.2006 regarding Communications The Committee acceded to the Banking facility in Post Offices and Information request of the Ministry for Technology dropping of the assurance and the assurance was dropped. 64. SQ. No. 2220 dated 12.12.2006 Petroleum and -do- regarding Russia’s participation in Iran- Natural Gas Pakistan-India Pipeline Project

36 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 65. USQ. No. 1514 dated 4.12.2007 Culture The Committee acceded to the regarding National Cultural Policy request of the Ministry for dropping of the assurance and the assurance was dropped. 66. (i) USQ. No. 1497 dated 13.3.2008 Planning The Committee acceded to the regarding Recommendations of Commission request of the Ministry for Knowledge Commission and dropping of the assurances and the (ii) USQ. No. 1496 dated 13.3.2008 assurances were dropped. regarding National Knowledge Commission 67. USQ. No. 251 dated 18.2.2009 regarding Commerce and The Committee did not accede to Scam in import of pulses Industry the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to pursue the matter with CBI and furnish the Status Note in the matter. 68. USQ. No. 294 dated 7.7.2009 regarding Civil Aviation The Committee acceded to the dues of Airlines request of the Ministry for dropping of the assurance and the assurance was dropped. 69. SQ. No. 93 dated 9.7.2009 regarding Culture The Committee did not accede to statue of Chhatrapati Shivaji the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to take up the matter with the State Government at the Secretary level for an early decision. 70. SQ. No. 273 dated 22.7.2009 regarding Home Affairs The Committee did not accede to death sentence for offenders of rape the request of the Ministry for dropping of the assurance and directed that the Ministry be given a time of 6 months to complete the consultations and arrive at decision and furnish the Status Note in the matter. 71. USQ. No. 3780 dated 7.8.2009 regarding Railways The Committee did not accede to Coach factory to Manufacture ICF design the request of the Ministry for fabricated bogies dropping of the assurance and directed that the Ministry be asked to furnish the Status Note indicating the exact area of land involved in litigation, number of people affected and reasons for approaching the court. The Committee also decided to hear the Chairman, Railway Board and concerned officials of Kerala on a later date.

37 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 72. SQ. No. 497 dated 29.4.2010 regarding Culture The Committee acceded to the Recommendation of National Knowledge request of the Ministry for Commission dropping of the assurance and the assurance was dropped. 73. USQ. No. 1874 dated 11.8.2010 Home Affairs The Committee did not accede to regarding Spurt of extremist activities in the request of the Ministry for Kerala dropping of the assurance and directed that the Ministry be asked to furnish the Status Note in the matter. 74. USQ. No. 2455 dated 1.12.2010 Road Transport The Committee acceded to the regarding maintenance of NHs passing and Highways request of the Ministry for through Punjab dropping of the assurance and the assurance was dropped. 75. (i) SQ. No. 90/25.11.1997 regarding New Civil Aviation The Committee did not accede to Civil Aviation Policy; the request of the Ministry for (ii) USQ. No. 1355/9.6.1998 regarding dropping of the assurances and New Civil Aviation Policy; directed that the Ministry be asked to furnish a categorical reply (iii) USQ. No. 2909/14.7.98 regarding stating that the Government does Status of Tata Singapore Airlines not intend to frame a Civil Aviation Alliance; Policy. (iv) USQ. No. 93/30.11.1999 regarding formulation of new civil aviation policy; (v) USQ. No. 2375/12.12.2000 regarding role of aviation policy on international services; (vi) USQ. No. 1681/7.8.2001 regarding finalization of new civil aviation policy; (vii) USQ. No. 618/26.11.2002 regarding impact of new civil aviation policy; (viii) USQ. No. 1663/5.8.2003 regarding new civil aviation policy; (ix) SQ. No. 38/6.7.2004 regarding regulator for Civil Aviation Sector; (x) SQ. No. 22/6.7.2004 regarding recommendations of Naresh Chandra Committee; (xi) USQ. No. 243/13.7.2004 regarding consumer-oriented civil aviation policy; (xii) USQ. No. 211/20.7.2004 regarding paid-up capital for new entrants in aviation sector; (xiii) USQ. No. 1170/14.12.2004 regarding recovery of dues from airlines; (xiv) USQ. No. 2176/22.3.2005 regarding entry of private sector players in ATF supply at Airports;

38 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry (xv) USQ. No. 114/26.7.2005 regarding development of civil aviation sector; (xvi) USQ. No. 287/14.8.2007 regarding new aviation policy; (xvii) USQ. No. 304/14.8.2007 regarding new civil aviation policy; (xviii) USQ. No. 900/21.8.2007 regarding vision 2020; (xix) USQ.No. 902/21.8.2007 regarding overseas operations by domestic airlines; and (xx) SQ. No. 45/ 21.10.2008 regarding new civil aviation policy;

76. SQ. No. 125/2.8.2005 regarding Petroleum The Committee acceded to the diplomacy on oil supplementary raised and request of the Ministry for by Smt. Ambika Soni, M.P. Natural dropping of the assurance and the Gas assurance was dropped.

77. SQ. No. 238/29.8.2007 regarding Home Affairs -do- independent law enforcement agency for investigating corruption cases

78. (i) USQ. No. 3475/21.12.2009 regarding Home Affairs The Committee acceded to the application of Central Acts in Nagaland request of the Ministry for and dropping of the assurances and the assurances were dropped. (ii) USQ. No. 2833/21.4.2010 regarding special package for Nagaland.

79. USQ. No. 199/24.2.2010 regarding Home Affairs The Committee did not accept the ensuring constitutional safeguard to stand of the Ministry and felt that indigenous people of Assam the argument put forward by the Ministry would have been valid at the time of answering the question by the Minister and, therefore, directed that the Ministry be asked to furnish a Status Note in the matter.

80. USQ. No. 1185/8.3.2010 regarding Power The Committee while acceding to CERC notification on renewal energy the request of the Ministry for dropping of the assurance was of the view that such a reply to the question was not warranted and the assurance was dropped.

81. USQ. No. 1548/9.3.2011 regarding Urban The Committee acceded to the funding of Phase-III and IV work by Development request of the Ministry for Delhi Metro dropping of the assurance and the assurance was dropped.

39 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry

82. USQ. No. 1574/11.3.2010 regarding External Affairs The Committee did not accede to passport to nationals from Pakistan the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note inter alia mentioning the date and details of registration of case and progress in the investigation.

83. SQ. No. 368/21.4.2010 regarding Doha Commerce The Committee acceded to the round of WTO discussion and Industry request of the Ministry for dropping of the assurance and the assurance was dropped.

84. SQ. No. 566/5.5.2010 regarding setting -do- -do- up National Institutes of Design

85. SQ. No. 183/6.8.2010 regarding formula Consumer The Committee did not accede to for sugarcane pricing Affairs, Food the request of the Ministry for and Public dropping of the assurance and Distribution directed that the Ministry be asked to furnish the Status Note in the matter.

86. USQ. No. 2648/18.8.2010 regarding Home Affairs The Committee did not accept the expediting updating of NRC in Assam stand of the Ministry and felt that the argument put forward by the Ministry would have been valid at the time of answering the question by the Minister and, therefore, directed that the Ministry be asked to furnish a Status Note in the matter.

87. USQ. No. 1317/22.11.2010 regarding Law and Justice The Committee was of the view appointment of Oath Commissioners. that the Department did not seem to be serious while answering the question as the fact put forth by the Department for dropping the assurance now was known to them when the question was replied. The Committee, therefore, did not accede to the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

40 Sl. Assurance No. (with date) taken up for Name of Status No examination Ministry 88. USQ. No. 1915/26.11.2010 regarding Consumer The Committee was of the view export of sugar. Affairs, Food that there was a specific assurance and Public in the reply and moreover what Distribution constitutes an assurance is for the Committee to decide and not by the Ministry. The Committee did not accede to the request of the Ministry for dropping of the assurance and directed that the Ministry be asked to furnish a Status Note in the matter.

89. USQ. No. 328/24.2.2011 regarding Science and The Committee acceded to the Structural health monitoring system. Technology request of the Ministry for dropping of the assurance and the assurance was dropped.

III. Review of Work Done

(a) Sittings of the Committee

3.3 During the year 2011, the Committee held 11 sittings and the time spent in those meetings amounted to 12 hours and 30 minutes. Statement showing the dates of sittings of the Committee held during the year 2011, the duration of the sittings, and the subject discussed are given in Annexure-III.

(b) Study Visits

3.4 During 2011, the Committee undertook three study visits to Chennai-Port Blair-Kochi, Leh-Srinagar and Amritsar-Chandigarh-Shimla as per the details given below to hold discussions with the managements of certain institutions/organizations etc. on the matters under its examination:

Place Name of the Organisation Subject

Chennai, Port Blair and (i) Chief Secretary, Andaman and (i) USQ. No. 2203 dated 9-12-2009 Kochi from 6th to 12th Nicobar Islands Administration regarding proposal to increase no February, 2011 fishing zone for coastal security, (ii) (ii) managements of State Bank of USQ. No. 3363 dated 26-04-2010 India and Syndicate Bank regarding protection of tribal culture, (iii) USQ. No. 3089 dated (iii) managements of Indian Bank and 23-4-2010 regarding time frame for Indian Overseas Bank debt waiver scheme, (iv) USQ. No. 2053 dated 8-12-2009 regarding (iv) managements of Chennai Port appointment on compassionate Trust and Ennore Port Ltd. ground in RRBs, (v) USQ. No. 2126 dated 16-3-2010 regarding (v) managements of Setu Samudram expansion of new ports, Corporation, Tuticorin Port Trust and classification of major ports, Dredging Corporation of India Limited.

41 Place Name of the Organisation Subject (vi) management of the Chennai (vi) USQ. No. 2568 dated 17-8- Petroleum Corporation Ltd. 2010 regarding classification of major ports. (vii) management of Neyveli Lignite Corporation (vii) USQ. No.1793 dated 10-8- 2010 regarding sea route (viii) Chief Secretary, Government of transportation between Ramesh- Kerala and management of the Cashew waram to Talaimannar in Sri Lanka, Export Promotion Council of India (viii) USQ. No. 3500 dated 04-08- (ix) managements of Kochi Refinery, 2009 regarding illegal import of HLL Lifecare Limited and Hindustan banned materials, (ix) SQ. No. 102 Newsprint Limited dated 24-2-2009 regarding social responsibilities of Oil Companies, (x) management of State Bank of (x) USQ. No. 1483 dated 02-12- Travancore 2009 regarding minimum wages to (xi) management of Cochin Shipyard contract and casual labours, (xi) Ltd. USQ. No. 583 dated 22-10-2008 regarding casual workers appointed (xii) managements of Coir Board, in Central Government Offices and Spices Board and Coconut CPSUs, (xii) USQ. No. 4007 dated Development Board 03-05-2010 Setting up of coal (xiii) management of Cochin Port regulatory authority, (xiii) USQ. Trust and representatives of Inland No. 1641 dated 20-07-2009 Waterways Authority of India regarding Coal Production, (xiv) USQ. No. 635 dated 05-03-2008 regarding decline in production of cashew, (xv) USQ. No. 1027 dated 04-08-2010 regarding Cashew Development Board at Kollam, (xvi) USQ. No. 511 dated 24-11-2009 regarding survey of population affected with Endosulphan pesticide in Kasargod district, (xvii) USQ. No. 4301 dated 4-5-2010 regarding new ship building subsidy scheme, (xviii) USQ No. 1972 dated 18-12-2008 regarding subsidy for ship building industry, and (xix) USQ. No. 372 dated 27-07-2006 regarding National Sea Waterways.

Leh and Srinagar (i) Deputy Commissioner, Leh and (i) USQ. No. 143 dated 22.02.2011 From 20th to 25th Chief Executive Officer Ladakh regarding Misappropriation and June, 2011 Autonomous Hill Development diversion of MNREGS wages, (ii) Council (LAHDC) and the USQ No. 3363 dated 26.04.2010 representatives of Ministries of Rural regarding protection of Tribal Development, Tribal Affairs and Culture, (iii) USQ No. 3269 dated Culture 09.12.2010 regarding events to promote art and culture, (iv) SQ. No. 376 dated 06.12.2010 regarding

42 Place Name of the Organisation Subject

(ii) Management of Rural Electrification of remote villages Electrification Corporation and and hamlets, (v) USQ 1476 dated representatives of Government of 10.03.2010 regarding roads and J and K/ LAHDC and Ministries of NHs constructed, (vi) USQ No. Power and New and Renewable 1636 dated 17.07.2009 regarding Energy. setting up of processing plants by SAIL, (vii) USQ. No. 3170 dated (iii) Chief Secretary, Government of 31.07.2009 regarding Katara J and K and the representatives of Banihal Rail Link Segment, (viii) Ministries of Rural Development and USQ No. 3534 dated 10.12.2010 Road Transport and Highways and regarding hiring of out agencies, Steel and National Highways Authority (ix) USQ No. 1490 dated of India (NHAI) and Steel Authority of 09.03.2011 regarding steps to India Ltd. restore damaged temples in J and K., (x) USQ. No. 2331 dated 15.04.2002 regarding tribal status to (iv) Managements of Rural Pahari in J and K, (xi) USQ No. Electrification Corporation (REC) and 2053 dated 08.12.2009 regarding representatives of Government of appointment on compassionate J and K and Ministries of Power and grounds in RRBs, and (xii) USQ New and Renewable Energy No. 2054 dated 15.03.2011 regarding provision of direct loan to (v) Management of Ircon International needy. Limited (IRCON) and RITES Ltd. and the representatives of the Government of J and K and Ministry of Railways

(vi) Chief Secretary, Government of J and K and the representatives of Ministries of Home Affairs, Tribal Affairs and Culture

(vii) Managements of J & K Bank Ltd. and State Bank of India and representatives of Ministry of Finance.

Amritsar, Chandigarh and (i) representatives of Government of (i) USQ. No. 1036 dated Shimla from 16th to 22nd Punjab and Ministry of Railways 05.03.2010 regarding change of September, 2011 name of Railway Stations, (ii) management of Indian Oil (ii) Supplementary raised by Shri Corporation Ltd. and representatives Avinash Rai Khanna, MP to SQ. of Ministry of Petroleum and Natural No. 221 dated 11.03.2011 regarding Gas delay in implementing Rail (iii) representatives of Government of Projects. Punjab and Ministry of Food Processing Industries (iii) USQ. No. 124 dated 09.11.2010 regarding subsidized (iv) management of Punjab National gas connections in rural areas and Bank and Punjab and Sind Bank and USQ. No. 731 dated 01.03.2011 representatives of Ministry of Finance, regarding opening of gas agency in RBI and NABARD Hoshiyarpur.

43 Place Name of the Organisation Subject (v) representatives of NHAI, (iv) SQ. No. 76 dated 25.02.2011 Governments of Punjab and Haryana regarding Setting up of mega food and Ministry of Road Transport and parks. Highways (v) USQ. No. 1452 dated (vi) representatives of PGI Chandigarh 23.11.2010 regarding Agricultural and Ministry of Health and Family Debt Waiver. Welfare (vi) USQ. No. 1476 dated (vii) Chief Secretaries of Government 10.03.2010 regarding Road and of Punjab and Haryana and NHs constructed. representatives of Ministry of Rural (vii) USQ. No. 3488 dated Development 25.04.2008 regarding patients (viii) Management of State Bank of treated free of cost in AIIMS & PGI Patiala and representatives of Ministry and point raised on 19.12.2008 of Finance, RBI and NABARD during discussion on Post Graduate (ix) Chief Secretary, Government of Institute of Medical Education and Himachal Pradesh and representatives Research, Chandigarh (Amendment) of Ministries of Rural Development Bill, 2008. and Earth Sciences (viii) USQ. No. 920 dated (x) Management of Ircon International 16.11.2010 regarding payment of Limited (IRCON) and RITES Ltd. and less than minimum wages under the representatives of the Government MGNREGS and USQ. No. 143 of Himachal Pradesh and Ministry of dated 22.02.2011 regarding Railways misappropriation and diversion of MGNREGS wages. (xi) representatives of SIDBI, UCO Bank and Ministry of Finance, RBI and (ix) USQ. No. 1741 dated NABARD 25.11.2010 regarding Doppler Radar in Himachal Pradesh. (xii) representatives of Government of Himachal Pradesh and NHAI, (x) USQ. No. 129 dated 20.11.2009 Ministries of Road Transport and regarding Rail line from Ghanauli Highways and Communication and to Baddi. Information Technology (xi) USQ. No. 2054 dated (xiii) representatives of Steel Authority 15.03.2011 regarding provision of of India Ltd. (SAIL) and Ministry of direct loans to the needy, Steel SQ No. 277 dated 15.03.2011 regarding fraudulent practices (xiv) managements of adopted by MFIs. Satluj Jal Vidyut Nigam Limited (SJVN) and National Hydro Electric (xii) USQ. No. 1289 dated Power Corporation Ltd. (NHPC) and 15.07.2009 regarding land required representatives of Ministry of Power. for construction and widening of NHs. and USQ No. 417 dated 29.07.2010 regarding Wireless Broadband connectivity in H.P. (xiii) USQ. No. 1636 dated 17.07.2009 regarding setting up of processing plants by SAIL. (xiv) USQ. No. 2925 dated 06.12.2010 regarding Hydel Projects Affecting Tribal Population.

44 3.5 Verbatim record of proceedings of the sitting of the Committee in which evidence was taken has been maintained. This comprised 120 pages.

IV. Reports Presented

3.6 During 2011 the Committee presented the following Report to the House:-

Sl. Report No. Subject Presented on No.

1. 65th Review of progress of implementation of assurances 19th December 2011

45 V. Summary of Recommendations

65th Report

3.7 The lack of categorical response on the part of the Government in the matter was surprising especially in light of the Planning Commission's view in the matter. The Committee recommended that the Ministry must communicate the categorical response of the Government on the issue of setting up of a separate Statutory Development Board for Konkan to the Committee at the earliest with a view to liquidate the assurance.

3.8 The statement of the Ministry that the Draft Bill was under consideration displays their casual attitude towards fulfilment of the assurance. The information provided in the Implementation Report was more or less the same as was provided at the time of answering the question as at that time also the central enactment was under consideration.

3.9 The Committee expresses its unhappiness at the attitude of the Ministry in furnishing an incomplete response and recommends that the Ministry should come back to the Committee with the action taken to expedite the introduction of Bill in Parliament.

3.10 The Committee is surprised to note that the Ministry had ignored the main purport of the question and furnished incomplete information in the Implementation Report. Khadi Industry is a major source of sustenance for the rural population and hence required vigorous efforts on the part of the Government for its development. In his reply, the Minister had mentioned that domestic as well as foreign aid had been received for development of Khadi industries and also separate funds had been allocated to KVIC. Then why Khadi was finding it difficult to survive.

3.11 The Committee recommends that the Government should apprise the Committee the observations and recommendations of the Indian Institute of Banking and Finance, Mumbai and the modalities worked out to give assistance to its units associated with KVIC.

3.12 The Committee expresses its dissatisfaction that the Ministry ignored such a vital assurance which was a part of the Question while forwarding the Implementation Report. The Ministry while sending the Implementation Report were required to be focused in their approach so that they did not lose sight of the assurance. The Committee recommends that the Government may keep the Committee informed of all issues relating to the project, steps taken so far and expedite the fulfilment of the assurance.

3.13 The Implementation Report should reflect a committed approach on the part of the Ministry in fulfilling the assurance. In the instant case, the Ministry have evaded an important part of the Question and forwarded an incomplete Implementation Report to the Committee. The fact that a certain activity (in this case Master Plan) was time consuming does not justify the Ministry to send an incomplete report. The Committee reiterates that the Ministry should ensure that all aspects of the Question have been replied to before forwarding the Implementation Report.

3.14 It is surprising to note that the Ministry forwarded the Implementation Report without bothering to check whether the information provided in it was in consonance with the information sought by the Member. Ethanol Blending Programme is one of the most ambitious programmes in the Indian Energy sector and the complex issue of ethanol blending in petrol has been hanging fire for quite a long time. The ongoing feud between the Ministries of Chemicals, Petroleum and Agriculture has stalled the environment-friendly fuel project. Petroleum is one of the most precious natural energy resources. With India developing at a fast pace, consumption of petroleum is increasing rapidly, forcing the Government to look for alternative energy resources. Hence, the Ethanol Blending Programme is a significant step in this direction. Besides being environment friendly, Ethanol is a supplement to the fossil fuels and would also bring good returns for sugar cane farmers. The Committee recommends that the Government should resolve the issue at the earliest in order to make the programme a success and for a pollution free environment in the country. The Committee hopes that the issue of pricing of ethanol may be finalised at the earliest and the assurance should be liquidated.

46 3.15 The Committee expresses its dismay at the delay in bringing out the Food Security Bill that addressed the basic need of a large percentage of the population living in perpetual hunger. The attitude on the part of Ministry that the Bill was still being examined was to say the least most intriguing. This lack of urgency to expedite is astonishing in view of reports of rising cases of hunger and malnourishment among the population living below poverty line. The Committee, therefore, recommends that the Government should expedite the consultation with the stakeholders and come up with the Food Security Bill at the earliest and fulfil the assurances.

3.16 The Committee expresses unhappiness at the evasive reply of the Ministry pertaining to the most vulnerable section of the society. More than four years have elapsed since the Question was raised on the floor of the Rajya Sabha, but the Government has only been able to form a Committee to study the suggestions and comments received on the proposed amendments. This kind of delay is not desirable nor can it be justified and it displays a lack of commitment on the part of the Government to address the issues concerning the differently abled. The Committee recommends that the Government should expedite the proposed amendments to the Act in order to provide a conducive environment to the differently abled in the country.

3.17 The Committee observes that the Ministry have furnished an evasive reply on a sensitive issue concerning national security. Often reports of Chinese incursions into Indian Territory appear in the media. The silence on the part of the Government is, to say the least, baffling. If there is no truth in these reports, the Government must come out strongly with facts and refute these reports. The Committee, therefore, recommends that the Ministry should provide categorical reply to the information sought by the Member and liquidate the assurance at the earliest.

3.18 Withholding of information on the main thrust of the Question by furnishing an incomplete Implementation Report by the Ministry was not at all appreciated by the Committee. The Question specifically pertained to the suggestion of the Review Panel on the provisions of the legislation but the Implementation Report is surprisingly silent on the issue. The Ministry have brushed aside the issue by simply stating that the Report had been submitted. The Committee recommends that it may be apprised of the suggestions made by the Review Panel and action taken on the same.

3.19 National Highways are lifeline of our country and hence need to be developed, maintained and monitored throughout the year. Mumbai-Goa Highway is an important highway as it sees a large tourist inflow both domestic and international, hence a great level of urgency is required to develop the stretch. The Committee directs the Ministry to expedite the feasibility study and take prompt action and liquidate the assurance.

3.20 The Committee is surprised to note that the Government have not been able to firm up dates for the resumption of the ferry services between Tuticorin and Colombo and Rameswaram to Thalaimannar which is of great significance to both India and Sri Lanka. The Committee recommends that the Government should expedite the date for starting the ferry services as people of both the countries are eagerly waiting for these services.

3.21 The Committee impresses upon the Ministries/Departments to cite cogent reasons as well as inform the Committee about the progress made towards fulfilment of the assurance and not in a routine manner, while seeking extension of time. The Ministries should seek timely extension and also ensure that every communication sent for consideration of the Committee has the approval of the concerned Minister.

3.22 The Committee observes that often the requests for dropping the assurances are addressed to the Ministry of Parliamentary Affairs or are sent without the approval of the Minister. The Committee therefore recommends that the Ministries should ensure that all communications regarding dropping of assurances should be addressed to the Committee and have the approval of the Minister. The Ministries should also avoid advising the Committee as to what constitutes an 'Assurance' as it is the prerogative of the Committee to decide as to what constitutes an 'Assurance'.

3.23 Keeping in view the fact that the Indian aviation industry is one of the world’s fastest growing aviation industries, it was imperative to expedite the decision on formulation of Civil Aviation Policy in the interest of the aviation sector. However, if it is felt by the Ministry that the policy is not required in view of its objectives already achieved, the Ministry may communicate a categorical reply to the Committee. The Committee further 47 recommends that the Vision 2020 of the Ministry should be distinct from the Civil Aviation Policy as it embodies the vision of an organisation.

3.24 The Committee is of the view that the issue of repeal/withdrawal of AFSPA from certain parts of the country is a sensitive issue. On the one hand, the recommendation of the Commission to repeal the Armed Forces Special Act justifies the demand of the Human Rights Organisations and other sections of the society and on the other hand, the situation in some parts of the country necessitates the continuance of the Act. Taking into account the amount of resentment against the Act, the Committee feels that the Act, if needs to be continued in some parts of the country warrants some amendments in its operations. The Government must act judiciously in the matter keeping in mind the concerns expressed by the Army as well as views expressed by the common man.

3.25 The Committee also recommends that the National Counter Terrorism Centre should be set up at the earliest in view of the perennial threat of terrorist attacks in the country. Any delay in this regard will prove detrimental to national security.

3.26 In view of the fact that NGOs play a vital role in the welfare of the society and a large number of NGOs are functioning at the Central and State level, the Committee is of the view that it is incumbent that there should be some kind of regulation, particularly with regard to registration and use of funds so that NGOs could perform a decisive role in the country as envisaged by the Planning Commission. Though considerable period of time has passed since the Foreign Contribution Regulation Act was passed by the Parliament but the Government has yet not notified it. The Committee recommends that the Government should frame and notify the rules/regulations under the Act and enforce the Act at the earliest. The Committee further recommends that much time has been taken by the Planning Commission in framing a comprehensive law for the regulation of NGOs which needs to be expedited.

3.27 The issue of honour killings is a blot on our society. Though laws exist to try cases of honour killings but with a view to make the law more specific and stringent, necessary amendments are required in the criminal laws of our country. The Committee, therefore, recommends that the amendments to the Criminal laws should be expedited before it becomes unmanageable and acquires dangerous proportions.

3.28 The Committee observes that the Ministry should expedite fulfilment of the assurances as the delay reflects lack of urgency on the part of the Government to resolve the issues. The unusual delay in bringing legislation to amend the Antiquities and Art Treasures Act, 1972 is a poor reflection on the Ministry’s functioning. The thefts of antiques clearly reflect the Government’s inability to protect the rich cultural heritage of our country. The Committee hopes that process of amending the Delivery of Books/Newspapers (Public Library) Act, 1954 would also be expedited.

3.29 On the issue of appointment of Class III and IV employees in Railways, the Committee expresses unhappiness at the fact that no data was furnished regarding the number of vacancies in different groups and observes that in this age of Information Technology this should not have been difficult.

3.30 The Committee expresses unhappiness at the inordinate delay in completing the Railway projects as the Railways are the life line of the country. Being an economical means of transportation, it is all the more imperative that the issues concerning it were addressed with utmost seriousness and sensitivity. The Committee observes that cost over runs afflicting Railway projects was a cause of great concern.

3.31 The Committee observes that the Debt Waiver Scheme should not have been based on the land holding or title of the land of a farmer but on the land being cultivated by a farmer. There might be farmers holding more land but actually cultivating less, hence would not be eligible for waiver. Further, a person who is cultivating the land on tenancy basis would also never be eligible for debt waiver.

3.32 The Committee appreciates the efforts made by Andaman and Nicobar Islands Administration towards welfare and development of primitive tribes in the islands. The Committee is of the opinion that the doors should be opened to those tribes who want to come into the mainstream and suggests that persons who were in touch with the tribes could be engaged to develop primers of languages spoken by the tribes. The Committee is

48 happy to note that the Andaman and Nicobar Islands Administration is taking strict action on persons promoting Jarwa tourism. The Committee recommends that the Administration must keep strict vigil on Andaman Trunk Road and severely punish those entering into Jarwa land without authorisation.

3.33 The Committee observes that the queries/objections raised by Ministry of Environment and Forests on various issues concerning Costal Regulation Zone in respect of ports should be dealt with by the Ministry of Shipping rather than passing it to the respective ports for sending their views to the Ministry of Environment and Forests. The Committee further observes that the ports should be allowed to concentrate on their core activities and should not be involved in administrative issues concerning policy matters.

3.34 The Committee also observes that there should not be any objection by the Ministry of Environment and Forests on expansion activities of ports within port limits. The Committee recommends that the Ministry of Shipping should work in close collaboration with the Ministry of Environment and Forests to sort out the pending issues as the delay would cause a loss in terms of investment, trade and infrastructure and impresses upon the representatives of the Ministry of Shipping to look into the problems being faced by the Ports.

3.35 The Committee observes that the Ministry takes 3-4 years in finalizing the installation of scanners and by the time they are installed, the technology changes, hence recommended that the Ministry should expedite the process. The Committee appreciates the prospect of the opening of the sea route between Rameswaram and Talaimannar in Sri Lanka as it would boost trade and tourism and would benefit the general population both in India and Sri Lanka.

3.36 The Committee notes that peripheral development should not be construed as Corporate Social Responsibility (CSR). The Committee further observes that under CSR only the persons living nearby the installations of a corporate entity were actually benefitting from various activities. The Committee is of the view that CSR should be targeted towards providing long term benefits like providing livelihood and should focus on skill development and emphasizes on the need for follow-up action to assess the reach of the programmes.

3.37 The Committee appreciates the efforts of CPCL towards ensuring the payment of minimum wages to the workers. However, the Committee also cautions them against the unscrupulous contractors who make money out of poor man’s labour.

3.38 The Committee observes that the Government does not appear to be serious about the formation of Cashew Board and recommends that the process for the formation of the Board should be expedited as it would help towards all round development of cashew plantation.

3.39 The Committee recommends that it was in the interest of Ship building industry to reintroduce the subsidy scheme. The Committee further recommends that levels of taxation and duties on ship building industry should be re-visited and in particular, the service tax in ship repair which has undermined the competitiveness of this industry be abolished.

3.40 The Committee recommends that the Ministry of Shipping should take up the matter with the Ministry of Environment & Forests more vigorously for clearing the proposals in order to fulfil the assurances and also Coastal Regulation Zone regulations should be made compulsory for new ports and not for the existing ones. The Committee strongly feels that expansion/modernization of ports within port area should be permitted in the interest of development of the existing ports.

3.41 The Committee recommends that the Government must ensure social auditing of the works done under MGNREGA and if it is not done for a considerable period, the funds should not be released further. The Committee further recommended that the Government should impress upon the State Government to spread awareness about the scheme in the State so that the desired benefits of the scheme could be achieved. Further, the Committee feels that some relaxation should be made out for timely and lump sum release of funds in view of the peculiar topography of the Ladakh region.

49 3.42 The Committee appreciates the efforts on the part of the Ministry of Power and is of the view that the electrification programme needs to be implemented more vigorously to tap the abundant sunlight in the Ladakh region which could be used to generate solar energy especially for remote areas where the grid system could not be operated so that a large number of people would be benefited, especially those living in far-flung areas.

3.43 The Committee observes that the roads in Jammu and Kashmir are in a bad state and feels that the roads and highways projects should be given priority in the state in view of the volatile situation in that state. The roads and highways should be kept in good condition for which strict quality control measures need to be adopted by the Government.

3.44 The Committee expresses unhappiness at the attitude of SAIL and feels that the concessions desired by SAIL do not fall within the domain of the State Government and wonders how the project was approved without taking into consideration these concessions? The Committee takes note of the development and opined that the issues impeding the project should be resolved at the earliest.

3.45 The Committee appreciates the work being done for completion of the project and notes that it is a challenging task considering the difficult terrain of the region and hopes that the Railways would rise to the occasion and would be able to finish the project in time. The Committee also observes that due to the location of the Katra-Banihal link in difficult terrain it is important that an effective and fool proof Disaster Management Plan is put in place.

3.46 The Committee notes and appreciates the efforts made by the State Government for rehabilitating the migrants. The Committee, however, feel that a lot still has to be done to instill a feeling of confidence among the migrants to return to the valley. The Committee hopes that with adequate help from the Central Government, the State Government would be able to rehabilitate the migrants in near future.

3.47 The Committee recommends that Banks should educate the farmers about the various Schemes and give wide publicity as they are unaware of those Schemes and guide them in availing the benefits under different Schemes. The Committee observes that while implementing the scheme, the interest of the farmers should be safeguarded and recommends to put in place a monitoring mechanism so that the farmers are benefited from the Scheme.

3.48 The Committee expresses its apprehension that few people would come forward to set up LPG dealership under the RGGVY and questions the economics of the subsidy given to the BPL families. The Committee recommends that in the present scenario when profits are low and attempts are being made to cap subsidies, ways should be explored to utilize the subsidy for providing incentives to ensure that people use Biogas plants for getting cooking gas. The surplus biogas could be purchased by the oil companies. This would amount to long term sustainability than short term measures like subsidies. The Committee advises the representatives to take up the matter with the Ministry of Environment and Forests.

3.49 The Committee observes that Highways are the lifeline of a country hence should be given priority in the development schemes. The Committee notes that the pace of work in most of the Highway projects is very slow. Hence the Government should take steps to expedite the work so that the people do not face inconvenience due to the poor infrastructure. The Committee also recommends setting up of a Committee to resolve the issues that were causing hindrances in the completion of the projects and observes that delay in completing the various projects is detrimental to our developing economy. The Highways should also be kept in good condition for which it is essential that strict quality control measures are adopted by the authorities.

3.50 The Committee recommends that the Ministry of Health and Family Welfare should consider the matter at their end and extend the required support to the Post Graduate Institute for starting an MBBS course.

3.51 The Committee observes that the objective of the Scheme is to provide gainful employment and a means of sustenance to people living in rural areas. Therefore, incidents of misappropriation/diversion of wages signify lack of effective monitoring by the concerned State Governments in implementation of the Scheme. The Government should put in place an effective monitoring mechanism to check such cases.

50 3.52 The Committee expresses its concern over the attitude of the State Administration over the fact that they did not forward their comments to the Ministry of Home Affairs for changing the name of the Attari station. The Committee recommends that the Ministry of Railways must reconsider the matter and initiate the proceeding to change the name of Attari station to Sham Singh Attari.

3.53 The Committee also expresses unhappiness at the attitude of the Northern Railways towards its delaying tactics in completing the railway projects particularly when State Government has fulfilled its obligation. The Committee recommends that the Ministry of Railways should take necessary steps at the earliest to complete the projects so as to obviate time and cost over run.

3.54 The Committee is not satisfied with the reply given by the representative of the Ministry and observes that the Government of Himachal Pradesh never said that Kalka-Baddi rail line may be taken instead of Ghanauli- Baddi. That was an additional demand. The Committee directs the representatives of the Ministry to take quick and favourable steps for getting the original project of Ghanauli-Baddi sanctioned so that the work on the proposed project could be started.

3.55 The Committee appreciates the commendable work being done by the public sector undertakings to address the needs of the displaced tribals and recommends that the Government should always keep the distinct needs of the tribal communities in mind before building any infrastructure.

VI. Secretariat

3.56 The Committee Section (Government Assurances) headed by an Assistant Director constitutes the Secretariat of the Committee. A Joint Secretary, a Director and Deputy Director remained in-charge of the Branch.

3.57 To assist the Committee in its work, material received from the Ministries/Departments/Various non- official organizations and individuals was studied from which points were culled out and questionnaires for written replies/evidence prepared for the use of the Committee.

3.58 The Secretariat also collected material for on-the-spot studies and gave inputs during the study visits undertaken by the Committee.

3.59 The work relating to drafting of the Reports of the Committee alongwith their presentation, laying, printing and distribution was also undertaken by the Secretariat.

3.60 The Secretariat also studied material like Parliamentary Debates, answers to Parliamentary Questions etc. relevant to the subjects under examination of the Committee.

51 ANNEXURE-III (See Para 3.3)

Details of the sittings of the Committee on Government Assurances during the year 2011 Sl. Date of Duration Subject No. Meeting Hrs.-Mins.

1. 04.01.2011 2.30 The Committee considered requests for dropping of Assurances received from various Ministries and heard the representatives of Ministry of Civil Aviation. 2. 17.01.2011 2.15 The Committee heard the representatives of the Ministry of Home Affairs on the progress of implementation of pending assurances pertaining to the Ministry and also ascertained the reasons for delay in their fulfilment. 3. 31.01.2011 0.50 The Committee considered requests for dropping of Assurances received from various Ministries. 4. 14.03.2011 1.30 The Committee considered requests for dropping of Assurances received from various Ministries. 5. 12.05.2011 1.10 The Committee considered requests for dropping of Assurances received from various Ministries. 6. 20.05.2011 1.30 The Committee considered requests for dropping of Assurances received from various Ministries.

7. 25.08.2011 1. 00 The Committee considered requests for dropping of Assurances received from various Ministries. 8. 07.09.2011 1.20 The Committee heard the representatives of Ministry of Culture in connection with the fulfilment of pending assurances pertaining to that Ministry and ascertained the reasons for delay in their fulfilment. 10. 14.11.2011 3.00 The Committee heard the representatives of Ministry of Railways in connection with the fulfilment of pending assurances pertaining to the Ministry of Railways and ascertained the reasons for delay in their fulfilment. 11. 16.12.2011 0.15 The Committee considered and adopted the draft 65th Report.

52

CHAPTER-IV COMMITTEE ON PAPERS LAID ON THE TABLE

I. Composition of the Committee

4.1 The Committee was constituted on 29th September, 2010 with the following composition:—

1. Shri Tariq Anwar – Chairman 2. Shri G. Sanjeeva Reddy 3. Dr. E. M. Sudarsana Natchiappan 4. Dr. Vijaylaxmi Sadho 5. Shri Vijaykumar Rupani 6. Shri K. B. Shanappa 7. Shrimati Gundu Sudharani 8. Shri Mahmood A. Madani 9. Dr. Barun Mukherji 10. Dr. Ashok S. Ganguly

II. Subjects selected for examination

4.2 The Committee performed the following functions:—

(i) Examined the laying of the Annual Reports and Audited Accounts of Government Companies, Public Sector Undertakings, bodies created by Acts of Parliament, Cooperatives, Institutions and Societies formed and financed by the Government;

(ii) Examined the delay in the laying of the Government Notifications/Orders on the Table of Rajya Sabha; and

(iii) Monitored the implementation by the Ministries of the recommendations of the Committee set out in its various reports.

III. Review of work done (a) Sittings of the Committee 4.3 During the year 2011, the Committee held 19 sittings lasting for 25 hrs, 30 minutes. A statement showing the dates of sittings of the Committee held during the period under review, the duration of the sittings and the subjects discussed are given in Annexure IV. 4.4 The Committee examined 341 requests received from the Ministries for grant of extension of time for laying the Annual Reports/Audited Accounts of Government Companies/Organisations and granted extension. The Committee also undertook local visits and held discussions with the managements of the concerned Government organizations. The representatives of some Ministries and organizations were also invited for oral evidence before the Committee.

(b) Study Visits 4.5 During the year 2011, the Committee visited the following Organisations to discuss with the Management regarding the delayed laying of their Annual Reports and Audited Accounts on the Table of the Rajya Sabha : —

53 Sl. No. Date of visits Company/Organisation visited 1. 1st February, 2011 (i) Bengal Chemicals & Pharmaceuticals Ltd. (BCPL), Kolkata (ii) Indian Institute of Management (IIM), Kolkata

2. 2nd February, 2011 Andaman & Nicobar Islands Integrated Development Corporation Ltd. (ANIIDCO), Port Blair

3. 3rd February, 2011 UT Mission Authority Sarva Shiksha Abhiyan, Andaman & Nicobar Islands, Port Blair

4. 4th February, 2011 National Institute of Siddha (NIS), Chennai

5. 5th February, 2011 (i) Board of Apprenticeship Training (BOAT), Chennai (ii) Central Institute of Plastics Engineering & Technology (CIPET), Chennai

6. 26th July, 2011 (i) Kerala Agro Industries Corporation Limited (KAIC) (ii) Sarva Shiksha Abhiyan, Kerala (iii) Sree Chitra Tirunal Institute of Medical Sciences and Technology

7. 27th July, 2011 Karnataka Agro Industries Corporation Limited

8. 28th July, 2011 Kidwai Memorial Institute of Oncology

9. 27th Sept., 2011 (i) AP Agro Industries Corporation Limited (APAIC) (ii) Hyderabad Pharma Infrastructure and Technologies Ltd. (iii) Salar Jung Museum, Hyderabad (iv) School of Planning and Architecture, Vijaywada

10. 28th Sept., 2011 (i) Council for Fair Business Practices at Mumbai (ii) Office of Controller General of Patents, Designs and Trade Marks (CGPDTM), Mumbai (iii) Maharashtra Agro-Industries Corporation , Mumbai

11. 29th Sept, 2011 (i) Mormugao Port Trust, Goa (ii) Goa Meat Complex Ltd., Panaji

12. 30th Sept, 2011 Goa Sarva Shiksha Abhiyan, Panaji

54 IV. Reports presented

4.6 During the year 2011, the Committee presented the following Reports to the House: -

Sl. Report Date of Subject No. No. Presentation 1. 125 01.03.2011 Regarding laying of the Annual Reports and Audited Accounts of Tea Board, Kolkata; Tobacco Board, Guntur, Andhra Pradesh and Indian Council for Cultural Relations (ICCR), New Delhi.

2. 126 01.03.2011 Regarding laying of the Annual Reports and Audited Accounts of Employees’ State Insurance Corporation (ESIC), New Delhi; Haj Committee of India and Food Corporation of India (FCI), New Delhi.

3. 127 22.03.2011 Regarding laying of the Annual Reports and Audited Accounts of Indian Institute of Technology, Mumbai, National Institute of Industrial Engineering (NIIE), Mumbai and Hyderabad University, Hyderabad.

4. 128 22.03.2011 Regarding laying of the Annual Reports and Audited Accounts of Asiatic Society, Kolkata, Centre of Excellence on Medicinal Plants and Traditional Knowledge, Bangalore and Singareni Collieries Company Limited (SCCL), Hyderabad.

5. 129 08.08.2011 Regarding laying of the Annual Reports and Audited Accounts of Indian Institute of Management (IIM), Bangalore; Sarva Shikshana Abhiyan (SSA), Karnataka and Indian Institute of Science (IISc), Bangalore.

6. 130 08.08.2011 Regarding laying of the Annual Reports and Audited Accounts of National Bank for Agriculture and Rural Development (NABARD), Mumbai; Damodar Valley Corporation (DVC), Kolkata; Industrial Investment Bank of India (IIBI), Kolkata & Kolkata Port Trust, Kolkata

7. 131 08.08.2011 Regarding laying of the Annual Reports and Audited Accounts of Aligarh Muslim University (AMU), Aligarh; Research and Information System (RIS), New Delhi and Indian Red Cross Society (IRCS), New Delhi

8. 132 19.08.2011 Regarding laying of the Annual Reports and Audited Accounts of Gas Authority of India Limited (GAIL) and Petroleum and Natural Gas Regulatory Board (PNGRB)

55

Sl. Report Date of Subject No. No. Presentation 9. 133 19.08.2011 Regarding laying of the Annual Reports and Audited Accounts of Centre for Railway Information System (CRIS), New Delhi; National Commission for Minorities (NCM), New Delhi and National Human Rights Commission (NHRC), New Delhi

10. 134 19.08.2011 Regarding laying of the Annual Reports and Audited Accounts of Bengal Chemicals and Pharmaceuticals Limited (BCPL), Kolkata; UT Mission Authority, Sarva Shiksha Abhiyan, Andaman & Nicobar Islands and Board of Apprenticeship Training (BOAT), Chennai

11. 135 07.09.2011 Regarding laying of the Annual Reports and Audited Accounts of National Institute of Youth Development (RGNIYD), Sriperumbudur, Tamil Nadu; All India Council for Technical Education (AICTE), New Delhi; and Central Information Commission, New Delhi

12. 136 07.09.2011 Regarding laying of the Annual Reports and Audited Accounts of Nehru Memorial Museum and Library (NMML), New Delhi; Sree Chitra Tirunal Institute for Medical Sciences & Technology (SCTIMST), Thiruvananthapuram; and STCL, Bangalore.

13. 137 21.12.2011 Regarding laying of the Annual Reports and Audited Accounts of Kerala State Agro-Industries Corporation Ltd; Sarva Shiksha Abhiyan, Kerala and Kidwai Memorial Institute of Oncology, Bangalore.

14. 138 21.12.2011 Regarding laying of the Annual Reports and Audited Accounts Of Commissioner for Linguistic Minorities (CLM), Allahabad; National Commission for Women (NCW) and National Institute of Siddha

15. 139 21.12.2011 Regarding laying of the Annual Reports and Audited Accounts of National Projects Construction Corporation Limited (NPCC); All India Institute of Medical Sciences (AIIMS), New Delhi and University Grants Commission (UGC)

V. Summary of Recommendations (a) 125th Report Tea Board, Kolkata

4.7 The Committee noted the delay in laying of Annual Reports and Audited Accounts of Tea Board. It also acknowledged the timely laying of papers in the last two years. The Committee hoped that the Tea Board and Ministry will ensure timely laying in future.

4.8 The Committee observed that the audit certificate was delayed despite timely submission of annual accounts. As per the written submission made before the Committee by the office of C&AG, it was informed that the audit process could be completed within 4 months, i.e. by 31st October, if the annual accounts are furnished in time, i.e. by 30th June. Yet it was observed that in case of Tea Board the audit process took almost 5 to 8 months. Taking note of the delay in the process of audit, the Committee recommended that the Ministry should take up the issue of duality of audit, with the C&AG.

56 4.9 The Committee recommended that the Review by the Ministry should be an objective appraisal of the performance against tangible benchmarks and a comparative assessment of the Board’s performance vis-a-vis global and domestic trends in the industry. The Committee also recommended that Ministry should give details of the process and methodology adopted for conducting such a review.

4.10 The Committee expected the Ministry to take due cognizance of the Committee’s observations and recommendations and take necessary steps to ensure its compliance.

Tobacco Board, Guntur, Andhra Pradesh

4.11 The Committee noted that the Annual Reports and Audited Accounts of Tobacco Board were persistently delayed. The period of delay varied from 1 month 24 days to 7 months 29 days. The Committee observed that both the Ministry and the Board failed to comply with the recommendations of this Committee and consequently, the Annual Reports and Audited Accounts were not laid within the stipulated period.

4.12 From the information placed before the Committee by the Ministry and also the deposition before the Committee by the Secretary, Ministry of Commerce and Industry and the Chairman, Tobacco Board, the Committee noted that delay was mainly on account of two reasons, i.e., the Audited Accounts were received late from the C&AG, and inordinate time taken in getting the reports translated and printed.

4.13 The Committee noted that the schedule prescribed by the Board for timely laying of the Annual Reports and Audited Accounts accords 120 days to receive the audited report but, during the period under examination, the receipt of audit certificate was delayed by maximum of 108 days (over and above 120 days) in 2006-07. The C&AG took 75 days and 56 days in 2007-08 and 2008-09, respectively, in releasing the audit certificate. The Committee considered that this period contributed substantially to the delayed laying of papers. The Committee suggested to both the Ministry and the Tobacco Board to take up the matter with C&AG so that audit certificate is released by them by 30th September every year. At the same time, the Committee also advised the Board to look into the management of accounts of the Board and ensure that standard procedures are followed, so that they do not face recurrent queries during audit. The Committee came across cases where the auditors took more time because the accounts were not maintained properly. Auditors, while auditing the accounts, had to raise queries and clarifications from the organisations which took time and thereby the delay was caused.

4.14 The Committee is, however, unable to understand from the delay statements how much time the Board took to furnish replies to the audit queries. In this connection, the Committee drew attention to the recommendation contained in its 22nd Report (Para 3.17) presented to House in December, 1985 regarding the information to be provided in delay statement. It provided that a delay statement should, inter alia, include the dates of receipt of draft audit report, replies given to audit queries. This information was missing in the delay statements laid along with the papers for the years 2006-07 to 2008-09. The Committee, therefore, impressed upon the Ministry to ensure compliance to the Committee’s recommendation referred to above.

4.15 The Committee noted that, as per the schedule drawn up by the Board, papers should reach the Ministry by 15th November every year, whereas papers were submitted to the Ministry after the prescribed period and, the period varied from 22 days to 123 days. The Committee felt that the onus lied solely on the Board. The Board has to streamline its processes and ensure that the schedule is followed. The Committee considered this a grey area which called for attention of the Ministry also. The Committee observed this could definitely be avoided.

4.16 As regards the constraints being faced by the Board in getting the reports translated in Hindi, the Committee advised the Board to strengthen its Translation Wing. If it finds it difficult, the translation work can be outsourced so that the papers are not delayed due to delay in translation work. The Committee, therefore, impresses upon the Ministry and the Board to consider the aspect of outsourcing this work, so as to expedite the translation.

4.17 Further, considering that the accounts of the Board are fully computerised, the Committee feels that process of compilation and finalisation of annual accounts could be expedited, so as to make up for the delay in

57 translation and printing, and to meet the deadlines for laying. The Committee also recommended that like printing, the translation too could be outsourced, to expedite the process.

4.18 The Committee noted that the Ministry did not approach the Committee for seeking extension of time for laying the papers of Tobacco Board on the Table of Rajya Sabha, except the years 2007-08 and 2008-09. This was in contravention of the recommendations the Committee which stipulated that in case of a delay in laying of the papers, the administrative Ministry should approach the Committee, sufficiently in advance, for seeking extension of time for laying of the papers. The Committee impressed upon the Ministry for strict compliance of its recommendation in future.

4.19 The Committee acknowledged that the period of delayed laying of the Annual Reports and Audited Accounts of the Board had come down but it was yet to reach Parliament in time. The Committee directed the Ministry to closely monitor the laying of papers and ensure that the papers of the Tobacco Board reach Parliament in time.

4.20 The Committee noted that despite assurance given to the Committee the Tobacco Board had yet not laid the Annual Report and Audited Accounts for year 2009-10, nor had it sought extension of time from the Committee.

Indian Council for Cultural Relations (ICCR), New Delhi

4.21 The Committee took note of the Ministry’s assurance of seeking extension of time in case of any anticipated delay in future. However, it was apprehensive about fulfilling of the assurances by the Ministry. The Committee, therefore, directed the Ministry to abide by the Committee’s observations.

4.22 The Committee observed that while the audit had been prompt, there were different levels of approval before the accounts are submitted for audit. Audit took 2-3 months during the last few years in issuing the audit certificate. For the year 2008-09, the approved accounts were submitted for audit only in September, 2009. The Committee, therefore, recommended that the Ministry must take necessary steps so that the approvals by the Finance Committee and the Governing Council could be expedited.

4.23 The Committee took note of C&AG’s observation about the absence of internal audit wing in the Council. The Committee directed the Ministry to ensure that an adequate and competent internal audit wing is set up in the Council, at the earliest.

4.24 To expedite the audit, the Committee recommended that Ministry should negotiate with the C&AG, the possibility of a phased audit. At the same time, the ICCR and the Ministry must impress upon their Centres abroad and within India to compile their accounts quarterly. The ICCR should adopt IT-based networking, to monitor compilation of the accounts at its Centres. In this regard, the Committee hoped that the new accounting package Tally-9 would improve the situation significantly from the year 2010-11.

4.25 Despite repeated assurances by the Ministry, no review had been laid before the House. The Committee expressed serious concern over the absence of Ministry’s review of the ICCR. The Committee, therefore, recommended that the Ministry should lay its review of the Council, along with the Annual Report. Such review should include the methodology adopted for conducting such review and the benchmarks against which the performance of the Council is to be appraised.

4.26 The Committee also recommended that the review by the Ministry should be a critical appraisal of performance and should present a true and fair picture of the Council. It was, therefore, necessary that such review should take cognizance of the audit observations and elaborate on the action taken by the Ministry and Council on such observations.

4.27 The Committee expressed reservation that despite recurrence of similar audit objections every year, such lacunae had remained un-addressed. Going by the audit certificate for the year 2006-07 and the separate audit report of the C&AG for the year 2007-08, wherein specific audit observations were made, the Committee wondered if the audit certificates were delayed due to inadequacies in the Council’s accounts and practices.

58 4.28 In this regard, the Committee found its recommendations contained in its 8th Report in August 1983, still relevant. The Committee directed the Ministry to adhere to it. The said recommendation reads as under:

“When a Report, Auditors’ Report, Note to Accounts or any other part of a Report refers to a serious irregularity or to a matter of importance requiring further enquiry/corrective measure, there should be a reply or an explanatory note on it, prepared by the management and submitted along with the Report before the House. If there is no reply or explanatory note in the Report, the Government in its Report/Review should make a mention of the irregularity and explain the causes and the remedial action taken. The Committee feels that when a report of an irregularity remains unanswered or unexplained, the Parliament is not given a full and fair view of the situation and to that extent, the Report is incomplete.”

4.29 The Committee hoped that in future the documents of ICCR shall be laid before Parliament within the stipulated period of nine months from the closure of the accounts and the review of the Ministry shall also incorporate replies to the audit objections/ observations, if any, so as to present a true and fair picture on the working of the board.

4.30 The Committee noted that since last evidence on 21st January 2010, the ICCR had laid its reports for year 2008-09 on 15th May 2010. However, for year 2009-10, there was again delay in laying the reports. Despite assurance to the Committee, no extension had been sought by the Ministry.

(b) 126th Report

Employees State Insurance Corporation (ESIC), New Delhi

4.31 The Committee took note of the relevant Rules that provide for definite deadlines for the preparation and adoption of Audited Accounts and Annual Reports. The Audited Accounts, along with auditor’s report, should be adopted by Corporation latest by the 10th December. Rules also provide for separate laying of audited accounts and annual reports if the auditor’s report was not received by the 20th November. The Committee also took cognizance of Rule 41 which provides that the Annual Reports and Audited Accounts, along with the auditor’s reports as adopted by the ESIC, should be submitted to the Central Government latest by 20th December, for laying before the Parliament. Despite delinking the Annual Report from the delay in Audited Accounts in successive years till 2007-08, the Corporation had adopted the Annual Reports after the 10th December and submitted the same to the Central Government only by 20th December, leaving very few working days for the Ministry to prepare its Review and lay the Annual Report before the House during the Winter Session. Also, as per the standard Parliamentary procedures for laying the reports, a notice of three clear days from the concerned Ministry is required. With the existing deadlines, this condition is difficult to meet. The Committee observed that barring 2008-09, the Annual Report was laid every year belatedly. In 2007-08, the Audited Accounts were laid in time but the Annual Report was delayed. The Committee took cognizance of the replies of the Ministry in respect of the delay in laying of Annual Reports. The Ministry had conceded that delays had taken place due to delay in the meeting of the Corporation. The Committee recommended that the ESIC should re-formulate the schedule taking into account the procedure of approval and audit.

4.32 The Committee observed that there had been recurrent delays in getting audited reports despite timely submission of accounts for the audit. The Committee was separately informed by the CAG that in case of statutory corporation, the approved audit report should be sent back to the management within 90 days of submission of accounts. However, in every successive year, this deadline was not followed by the auditors. The Committee recommended that the Ministry and the ESIC should take up this issue with the CAG to discount any delay in future.

4.33 The Committee had also observed that despite its recommendation, the Ministry had not been laying its Review along with the reports. The Committee expressed apprehension that given the time schedule adopted by the ESIC for the preparation and adoption of its reports, hardly any time is left for the Ministry to formulate any objective review over the performance of the Corporation. The Committee, therefore, recommended that the time schedule should be reviewed so as to give the Ministry ample time to prepare its review. The Review by the Ministry should be a critical appraisal of the performance of ESIC, instead of a routine resume of bare facts.

59 As recommended by the Committee, such a Review by the Ministry must also reflect upon the observations and recommendations of the auditors.

4.34 The Committee recommended that to avoid delays in presenting the Audited Accounts and Annual Reports in future, the ESIC should expedite computerization of its accounts. Such computerized accounts should be compatible with the accounting standards framed by the Ministry of Finance and the CAG. The concerned staff should be adequately trained in this regard.

4.35 The Committee expressed anguish that Haj Committee of India took more two years to decide upon implementing the statutory requirements, after the statutory provisions of the Act had come into force on 5th December, 2002. The Committee found it to be a case of inexplicable negligence on the part of Haj Committee of India and the Ministry. 4.36 The Committee also expressed concern over the fact that the Haj Committee has not been laying its Annual Reports ever since its inception. 4.37 The Committee observed that in years 2002-03 and 2003-04, the auditors were prompt in completing the audit, however, during the years 2002-03, 2003-04 and 2004-05, when the Haj Committee laid its audited accounts, delays took place in forwarding the audited accounts to the Ministry and at the subsequent stage by the Ministry in laying the same before the House.

4.38 The Committee had, in its earlier recommendation, required that the reply to audit observations must also be laid before the House. However, the Ministry never laid its review along with the audited accounts, before the House.

4.39 The Committee also observed that the auditors had raised serious audit objections in the successive years regarding lack of credible accounting methods and individual entries in the accounts. The audit also noted that the internal control mechanism was absent in the Haj Committee. The Haj Committee did not respond to the objections raised by the auditor and that the firm that was assigned the responsibility had repeatedly cautioned the Haj Committee for amending the accounting methods. The Finance Sub Committee of the Haj Committee was aware of such accounting infirmities, yet no steps were taken to address critical issues raised by the auditors and the accounting firm. The Committee required the Ministry to take immediate and urgent steps in this respect.

4.40 Recurrent and protracted delays in laying the audited accounts and annual reports were clearly violation of statutory requirements. The Ministry should have intervened in the affairs of the Haj Committee in the event of recurrent delays by the auditing firm. The least Ministry could have done was to apprise the Committee of the constraints and seek extension. Instead, the Ministry chose to insulate itself from the affairs of Haj Committee. Apart from the audited accounts, the Ministry never sought any extension in respect of annual reports, which had never been laid ever since inception of the Haj Committee. The Committee reiterated that the annual reports and audited accounts, along with the review statement by the Ministry, should be laid before the House simultaneously. In case of delay, a delay statement, detailing the delay in chronological order, should also be laid along with other papers. Also, the review by the Ministry should be a critical appraisal of the performance of the organization, instead of being a routine resume of its activities. Such review should also reflect the audit observations.

4.41 As regards the accounts of the Haj Committee, the Committee found that statutory mechanisms like Finance Sub-Committee of the Haj Committee remained dormant in face of alarming omissions in adhering to standard accounting practices. In view of serious issues raised by the CA firm in the letter, the Committee found that the Haj Committee had been trying to shift the onus for delays on the CA firms, without addressing the crucial issues raised by them. While delay in laying the papers could be attributed to the Chartered Accountant firms only to an extent, the inherent infirmities in accounting practices were more serious. The Committee recommended that the Ministry, along with the CAG, should set accounting standards for the Haj Committee. The Committee noted that the procedure to maintain the accounts followed by the Haj Committee was not commensurate with the statutory requirement, which clearly assigns the onus to the Haj Committee to maintain the accounts in prescribed format. This responsibility cannot be delegated to the firms. On their part, the firm clarified that they were only tabulating the figures in a specific format approved by the Government, based on

60 the information furnished by the Haj Committee. The Committee was convinced that the onus of maintaining the accounts in the prescribed format and laying the audited accounts before Parliament rested with the Haj Committee only, and could not be shifted to the private firms.

4.42 The Committee recommended that the Haj Committee should maintain its own accounts as per the prescribed method and should have a separate accounts department, with trained accounting professionals, including the Chartered Accountants.

4.43 The Ministry of External Affairs laid the Annual Reports for the years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09, but the Audited Accounts for these years were not laid.

Food Corporation of India, New Delhi

4.44 The Committee took a serious view of the state of affairs in the Food Corporation of India. The issue between the FCI and Auditing Firm was allowed to remain unresolved for years. The Committee found the role of CAG and the Institute of Chartered Accountants of India (ICAI) in this regard, to be rather strange. Instead of resolving the issue, the CAG re-nominated the same firm whose contract was terminated. The Committee was equally surprised over the advice given by the ICAI to the new audit firm against taking up the audit assignments of the Food Corporation of India. It was a piquant situation where one statutory body (ICAI) hampered another statutory body (FCI) from fulfilling its statutory obligation. The statutory obligation of laying the reports was not allowed to be discharged by the Ministry, CAG and the ICAI for next three years till year 2000, when the FCI Act was amended, to give the CAG sole audit responsibility over the FCI. As a consequence, the auditing schedule of the annual accounts of the FCI got disrupted so much that ever since 1995-96, the Corporation had not been able to meet its obligation of timely presentation of annual audited accounts to the Parliament.

4.45 The Committee took note of the repeated omissions on the part of the Ministry to seek extension of time from the Committee. It reiterated that in case of possible delay the Ministry should approach the Committee well in advance for extension. Instead, the Ministry had been laying the statement before the House. The Ministry should abide by the established Parliamentary procedure of seeking extension from the Committee. For the year 2005-06 extension were sought twice before the reports were finally laid, with a delay of a year and nine months. Similarly, for the year 2006-07 the extension was sought for four times before the Reports were laid after a delay of 2 years and 3 months. While the Ministry had sought extension uptil 30th June, 2010 for laying the audited accounts and annual report for 2007-08, the same was laid only on 6th August, 2010. No extension was sought for the intervening period. Similarly, the Ministry sought extension uptil 30th September, 2010 for laying the reports and audited accounts for year 2008-09. The Ministry should keep the Parliamentary calendar in view before, seeking the extension, because the Parliament may not be in Session on that date.

4.46 Even after ten years of amending the FCI Act, the Corporation had not been able to set the schedule for preparing the reports in order. There was distinct inconsistency in the time taken at every stage of preparing the audited accounts viz., in compiling the Annual Accounts, in the process of audit in year 2005-06 four months were taken by the FCI Board in approving the audit replies, in 2000-01, 2001-02 and 2002-03 there were inordinate delays in submitting the adopted Annual Reports and Audited Accounts to the Ministry. The situation should have improved after amendments but the FCI, the Ministry and the CAG could not set the laying schedule in order for the last ten years.

4.47 The Committee finds that the schedule suggested by the Secretary, Department of Food and Public Distribution has hardly been adhered to during last ten years.

4.48 The Committee noted that the CAG has been making extensive comments on the internal audit of the FCI. In addition, the CAG, even after prolonged discussions with the FCI, also commented on the estimates of assets, liabilities, profits and losses of the FCI. The Committee, recommended that CAG should conduct periodic performance audit of the FCI and same may be presented to the Parliament. In view of lax internal audit standards in the FCI, CAG should involve its regional offices to conduct audit of the corresponding

61 regional FCI networks. In view of the fairly widespread FCI network, the accounts should be compiled quarterly.

4.49 The FCI and the Central Government sign the MoU annually, setting the annual targets. However, the Reviews laid by the Ministry do not refer to any such target set under the MoU. In the absence of such benchmarks, the Review statement remained a routine resume of the activities of the FCI, which did not make any critical appraisal of its performance, and that is the objective of a Review by the Ministry. The Review does not reflect upon the auditor’s repeated observations, particularly regarding internal audit and about lack of physical verification of stocks. The Committee expected that the Ministry’s Reviews should critically assess the achievements against the MoU targets. It should also reflect upon the compliance of audit observations.

4.50 During the intervening period since the last evidence on the 9th April 2010, the FCI had only laid before the House another delay statement on 19 November, 2010 for year 2008-09. According to the submission made before the Committee the reports for the year 2008-09 should have been laid by 30th September, 2010 and for year 2009-10 reports should have been laid by 31st December, 2010. The Ministry had not laid reports for either year.

(c) 127th Report

Indian Institute of Technology (IIT), Bombay

4.51 In spite of considerable and persistent delay, the Ministry of Human Resource Development failed to comply with the long standing directive of seeking extension of time for valid reasons, well in advance. The reason adduced for not seeking the extension of time, as the Reports are laid in the next Session i.e. Budget Session, was not convincing. The Committee, therefore, recommended that in case of delay in laying the Annual Reports and Audited Accounts of IIT, Bombay, the Ministry should approach the Committee sufficiently in advance for seeking extension of time.

4.52 The Ministry, in case of not laying the Reports within stipulated time, should lay a statement, giving reasons for not laying the Annual Reports and Audited Accounts on the Table of Rajya Sabha within the stipulated time.

4.53 The Annual Report of the Institute for the year 2002-03 and the Annual Report and Audited Accounts for the year 2005-06 were laid in time, but there have been persistent delays for the year 2001-02, 2003-04, 2004-05, 2006-07, 2007-08 and 2008-09. Thus, both the institute and the Ministry failed to adhere to the time schedule prepared by them. Committee, accordingly, advised both the Institute and the Ministry to put in place a mechanism to monitor the preparation of Annual Report and Audited Accounts, so that the laying of the same were ensured in time.

4.54 The Committee was also not satisfied with the reply that working of the organization is reflected in the Outcome Budget of the Ministry and, since it goes normally with the Annual Report prepared, the same need not be reflected in its review. A complete, fair and clear picture of the working of the organization should be reflected in the review statement laid by the Ministry.

National Institute of Industrial Engineering (NITIE), Mumbai

4.55 The Committee took note of the steps taken by the Ministry and the National Institute of Industrial Engineering (NITIE), Mumbai for streamlining the process of laying the papers on the Table of the House. It found that Audit Reports were received from the Accountant General Office after the due date, i.e. 31st October, for the year 2003-04 to 2008-09. The delay in dispatch of Audit Reports led to delayed laying of papers on the Table of Rajya Sabha. The Committee, therefore, recommended that the issue be taken up by the Ministry with CAG, so that the Reports are laid on the Table of House within the stipulated period.

4.56 The Ministry also failed to approach the Committee to seek extension of time for laying of Annual Reports and Audited Accounts of the Centre for the years 2003-04 and 2005-06 to 2007-08. The Committee

62 reiterated that in case of delay in laying of the Annual Reports and Audited Accounts on the Table of the Rajya Sabha, the Ministry should invariably approach the Committee for seeking extension of time, sufficiently in advance, so that the Committee is apprised about the reason for delay.

4.57 The review of the performance of the organisation made by the Ministry should be analytical, instead of being a routine statement. The Ministry must comment upon the financial and functional performance of the organisation and apprise the Parliament of the achievements made by the organisation, against the set annual targets. In its review, the Ministry should be able to certify whether the papers present true and fair picture of the organization.

4.58 Further, computerisation of the accounts of the Institute should be expedited, so that the accounts are processed in time and Annual Reports and Audited Accounts are laid on the Table of Rajya Sabha within the stipulated period of nine months, from the date of closure of accounts.

University of Hyderabad, Hyderabad

4.59 The Committee expressed displeasure over the inordinate delay in laying of the Annual Reports and Audited Accounts of the University. The Committee was not satisfied with the explanation of the Ministry that the University had to collect information from various constituents, which consumed time. The Committee did not find the reply convincing that semester examinations, evaluation, declaration of result, admission tests, its evaluation and then interviews added to the final delay in getting the Annual Reports and Audited Accounts finalized. The Ministry and the University should pursue the matter more diligently and should strictly adhere to target dates prescribed in the time schedule framed, so as to ensure timely submission of reports to the Parliament. The Ministry and the University should lay the Annual Reports and Audited Accounts simultaneously.

4.60 The Ministry should also effectively supervise the timely completion of all the stages involved in the preparation and laying of the Annual Reports and Audited Accounts of the University, so that the delays in laying of the papers were avoided.

4.61 The Ministry of Human Resource Development (Department of Higher Education) never approached the Committee to seek extension of time for laying of Annual Reports and Audited Accounts of the University of Hyderabad, for delayed laying of papers, in the past. The Committee, reiterated that in case of delay in laying of the Annual Reports and Audited Accounts on the Table of the Rajya Sabha, the Ministry should invariably approach the Committee to seek extension of time sufficiently in advance, so that the Committee is apprised about the reasons for the delay.

4.62 The review of the performance of the University made by the Ministry should be analytical, instead of being a routine statement. The Ministry must comment upon the functional performance of the University, and also apprise the Parliament of the achievements made against the set annual targets. In its review, the Ministry should be able to certify as to whether the papers present a true and fair picture of the organisation.

(d) 128th Report Asiatic Society, Kolkata

4.63 The Committee recommended that the related provision [Regulation 50 (a)], wherein the Annual General Meeting shall be held on 1st Monday of May each year, be changed to a suitable date, so that the papers of the Society are laid on the Table of the House within the stipulated time of nine months from the date of closure of Accounts.

4.64 The Ministry should consider to put in place a monitoring mechanism to ensure timely laying of the Annual Reports and Audited Accounts of Asiatic Society and other organisations falling under its control. A comprehensive delay statement, indicating, in chronological order, the dates of the completion of various stages involved in preparation of Annual Reports and Audited Accounts, should be laid on the Table of the House.

63 4.65 The Ministry failed to lay the comprehensive delay statements alongwith laying of the Annual Reports and Audited Accounts of the Society. The delay statements laid earlier were not comprehensive enough in giving the information as per the Committee’s recommendation. Nowhere, the delay statement for the year 2005-06 explained the reasons for the late start of audit, which was nearly 1½ month from the compilation of accounts. The Committee impressed upon the Ministry to strictly adhere to this recommendation in case of delay statements.

4.66 In spite of the considerable and persistent delay, the Ministry of Culture failed to adhere to its long standing directive to seek extension of time for valid reasons well in advance. There have been systemic bottlenecks, causing persistent delays every year and the Ministry remained oblivious of persistent violation of the Committee’s directive. In future, the Ministry should approach the Committee well in advance, to seek extension of time for laying the Annual Reports/Audited Accounts.

4.67 In case of non laying of Reports within the stipulated time, the Ministry should lay a statement, giving the reasons for not laying the Annual Reports and Audited Accounts within stipulated time on the Table of Rajya Sabha.

Centre of Excellence on Medicinal Plants and Traditional Knowledge

4.68 The Committee was concerned over the failure in laying of the Annual Report and Audited Accounts of Centre of Excellence for Medicinal Plants and Traditional Knowledge (FRLHT), Bangalore in time. The Committee has the right to be apprised of the activities thereof, to ascertain whether the purpose for which the said organization was constituted, is being fulfilled or not. It was, therefore, imperative that the documents of such organizations, complete in all respects, are laid before the Parliament in time. The Ministry should take all possible steps to ensure that all the pending Reports are laid on the Table of the House, as early as possible.

4.69 The Committee desired that a comprehensive statement, giving reasons for delay, in chronological order, setting forth the dates of accounts, their submission to Audit, receipt of draft Audit Report, replies given to audit queries, receipts of final audit Report, translation and printing of accounts and their submission to the Ministry for laying on the Table of the House, should be laid, alongwith the Annual Report and Audited Accounts, so that the House may identify the stages, causes and intent of delay and suggest remedial measures, wherever required.

4.70 In case of delay in laying the Annual Reports and Audited Accounts of the organisations under its administrative control, the Ministry of Environment and Forests should approach the Committee, sufficiently in advance, to seek extension on time, citing cogent reasons for doing so.

4.71 The Ministry of Environment and Forests should chalk out a time bound programme so that the papers of the Centre are laid within the stipulated time.

Singareni Collieries Company Limited (SCCL), Hyderabad

4.72 SCCL should lay its Annual Reports and Audited Accounts within 9 months after close of Accounting year. And if, for any reasons, these Reports cannot be laid within the stipulated period, the Ministry should lay, within 30 days of expiry of that period of 9 months or as soon as the House meets, whichever is later, a statement explaining the reasons why the papers could not be laid within the prescribed period.

4.73 The Company sought extension of time for holding Annual General Meeting (AGM) for a period of three months, i.e. upto 31st December in the years 2002, 2007 and 2009 and submitted the Audited Accounts to the within the extended time. Seeking extension of time for holding AGM for adoption of Annual Account cannot be treated as extension of time sought from the Committee for laying the papers. In future there should be better understanding in the Ministry of Coal and also in the Company so that there was no lapse in seeking extension of time.

64 4.74 The Ministry should take up the matter with the Chairman and Managing Director of SCCL so that the meeting of AGM is called in time to adopt the Annual Accounts of the Company every year.

(e) 129th Report Indian Institute of Management (IIM), Bangalore 4.75 “The Ministry of Human Resource Development should streamline the system and ensure that each stage involved in preparation of Reports of IIM, Bangalore reached in time.”

4.76 A mechanism also needed to be evolved, in consultation with C&AG, to simplify and streamline the process of statutory audit, as well as internal audit. The matter may be taken up with C&AG, both by the Institute and the Ministry, to reduce the delay in furnishing the Audited Accounts and audit certificate, so as to lay the Reports before Parliament, within the stipulated time of nine months.

4.77 The Committee impressed upon the Ministry to follow a proper procedure for seeking extension of time and approach the Committee sufficiently in advance for seeking extension of time for laying the papers by citing cogent reasons.

4.78 There had been shortage of staff in Communication Unit and the Hindi Translation Unit of the Institute. The Committee hoped that adequate staff will be provided to these units, to avoid delay in translation.

4.79 Persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

Sarva Shikshana Abhiyan (SSA), Karnataka

4.80 The Ministry and Sarva Shikshana Abhiyan, Karnataka must take all the required steps to lay the papers on the Table of the House within the stipulated time, as prescribed by the Committee.

4.81 The review statement should be comprehensive enough, giving broad performance, so as to apprise the Parliament of the true and fair picture of the organisation.

4.82 The Ministry and SSA, Karnataka should take appropriate steps, to finalise the accounts within the fixed time frame.

4.83 More computerization of accounts did not ensure timely finalization of accounts. It required skilled manpower, having proficiency, for timely finalisation of accounts. Persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

Indian Institute of Science (IISC), Bangalore 4.84 The Ministry of Human Resource Development did not seek extension of time for delay in laying the papers within the stipulated period they should approach the Committee in future sufficiently in advance, for seeking extension of time if there is any likelihood of delay in laying the papers, by citing cogent reasons.

4.85 Persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. Responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

65 (f) 130th Report National Bank for Agriculture and Rural Development (NABARD), Mumbai 4.86 The Ministry of Finance (Department of Financial Services) should take necessary steps to ensure that the Annual Reports and Audited Accounts of NABARD are laid on the Table of Rajya Sabha within nine months of the closure of its Accounts. The persistent delays in laying the papers is a serious matter for which the Ministry and the organisation are accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.87 It should also supervise effectively the timely completion of all the stages involved in the preparation and laying of the Annual Reports and Audited Accounts, so that delays in the laying of papers do not occur. In case the papers cannot be laid within the stipulated period, the Ministry should invariably approach the Committee, well in advance, for seeking extension of time.

4.88 The Committee is also not satisfied with the explanation regarding not laying the delay statement along with the Annual Report and Audited Accounts of NABARD for the year 2008-09. It, therefore, impressed upon the Ministry and NABARD to lay a comprehensive delay statement, along with the papers, on the Table of the House in case of delay in laying the same.

4.89 Further, the review of the performance of the organisation, made by the Ministry, should be analytical, instead of being a routine statement. The Ministry must comment upon the financial and functional performance of the organisation against the set annual targets, so as to present a true and fair picture regarding its performance. Damodar Valley Corporation (DVC), Kolkata 4.90 The Committee was constrained to note that despite the persistent delay, the Ministry of Power failed to comply with the Committee’s directive in laying the Annual Reports and Audited Accounts of DVC, to seek extension of time, stating the valid reasons well in advance. The Committee felt that the Ministry remained oblivious of the systemic bottlenecks causing the delays every year. The persistent delays in laying the papers was a serious matter, for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed. The Committee, therefore, impressed upon the Ministry to approach the Committee to seek extension of time, sufficiently in advance, giving cogent reasons for the delay.

4.91 The DVC and the Ministry of Power should ensure strict compliance of the time schedule, so that the Annual Reports and Audited Accounts of the Corporation are laid within the stipulated time. In the event of not laying of papers within the stipulated period, the Ministry of Power should also lay a statement on the Table of Rajya Sabha, giving reasons for the delay.

4.92 Further, the reviews of the performance of the Corporation made by the Ministry have been very routine statements. In the review statements Ministry should be able to present a true and fair picture of the performance of the organization.

4.93 The problem of Audit, Printing and Translation should be properly attended to by the Ministry and the Damodar Valley Corporation, so that the Annual Reports and Audited Accounts of Corporation are laid within stipulated time.

Industrial Investment Bank of India (IIBI), Kolkata 4.94 The Committee was of the view that persistent delays in laying the papers was a serious matter, for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.95 The Ministry should approach the Committee, well in advance, to seek extension of time, citing cogent reasons, in case of delay in laying of Annual Reports and Audited Accounts.

66 4.96 The Ministry should also lay a delay statement and a comprehensive review statement, enabling the Committee to comprehend the real picture of the performance of the organization.

Kolkata Port Trust, Kolkata 4.97 The Committee was of the view that persistent delays in laying the papers was a serious matter, for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed. In exceptional circumstances, where it is not possible to do so, the Ministry should lay a statement, explaining the reasons for not laying them on the Table of the House.

4.98 The Committee observed that the delay was attributed mainly to the inordinate time allotted in releasing the draft audit report to the Kolkata Port Trust. However, the Port Trust submits its replies within the allotted time of 10 days, but again 40 days have been allotted for releasing the Audit report. The Committee, therefore, recommended that the Port Trust and the Ministry should evolve a standard procedure, that fits into laying of the papers within stipulated time of nine months.

4.99 The Committee also recommended that the response to the audit queries must be included in the report, so as to give true and fair picture of the organisation.

4.100 There should be a prescribed format of delay statement, preferably in tabulated form, so that delay occurring at any level in preparation of the Annual Reports and Audited Accounts could be as per the time allotted, for each activity, could be properly understood.

4.101 The Committee, accordingly, impressed upon the need to evolve a monitoring mechanism in the Ministry, to ensure that the time schedule is strictly adhered to.

4.102 Further, a comprehensive review on the working of the organization covering broad performance of the organization and a brief description of the critical areas, should be laid along with the Annual Reports and Audited Accounts, as the Parliament being preoccupied sometimes with important legislative business may not find sufficient time to go through the Annual Report and Audited Accounts and therefore, a review which may present a true and fair picture of the functioning of the organization.

(g) 131st Report Aligarh Muslim University (AMU), Aligarh

4.103 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.104 The Committee observed that the information provided by the Ministry indicated that the University always delayed submission of its accounts for audit. The office of the CAG had conveyed to the Committee that delayed submission of accounts for audit was a major cause of delay in issuing the audit certificate by the CAG.

4.105 Regarding delay in Hindi translation of Reports, the University should expedite appointment of requisite translators, as approved by its Finance Committee. The University may also consider outsourcing the Hindi Translation at a competitive price.

4.106 The Committee had noted the layers of periodic review meetings and the reminders issued by the Ministry of Human Resource Development to the Central Universities, like AMU. It had expressed its strong concern over the prevailing trend of delays in approval of reports, due to the delays in holding meetings of the governing body of the Universities. The Committee, therefore, recommended that the competent authority and the administrative Ministry should adhere to a time schedule of the meetings of the governing bodies.

67 4.107 The University also must adopt IT-based computer network for updated accounts-keeping at the University. The University Departments should be asked to furnish their updated information to the nodal accounts office of the University. This should resolve the delay in compilation of annual accounts.

4.108 The Committee noted the assurance given by the Secretary, Department of Higher Education during her evidence before the Committee regarding timely laying of the Reports of the University. However, it took exception that previously the Department did not even seek extension of time. They sought extension for year 2009-10 till Budget Session, but even then they could not lay the Reports. The Committee recommended that in future, in the event of delay, the Department must seek prior extension from the Committee giving cogent reasons for the delay. However, the Department should not go for repeated extensions on similar grounds, instead the Department and the University should strive to resolve the bottlenecks in the way of timely laying of Reports.

Research and Information System

4.109 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.110 The Committee, while appreciating that major part of the annual grants from the Government were used to promote research, impressed upon the Ministry and the RIS that their obligation towards Parliament must not be compromised for want of the support staff. The Committee was constrained to note that inspite of considerable and persistent delay, the Ministry of External Affairs failed to adhere to its long standing directive to seek extension of time for valid reasons well in advance. Despite persistent delays every year, the Ministry remained oblivious to the persistent violation of the Committee’s directive. The Ministry should take all possible steps to ensure that all the pending Reports are laid on the Table of the House, as early as possible.

4.111 The Ministry and the RIS should put in place a proper mechanism so that Annual Report/Audited Accounts of RIS are available to the Ministry well within time. The Committee emphasised upon the need for timely convening of meetings of the Governing Council/General Body so that delays in submission of Reports to the Parliament are avoided in future. These bodies should meet regularly to monitor performance of the institution.

4.112 The Committee appreciated that the accounts of RIS were computerized and expected that computerization should minimize the delay in accounting and auditing.

Indian Red Cross Society (IRCS)

4.113 The Committee, in its Hundred and Twentieth Report presented to the House on 23rd November, 2009, had made the following observations/recommendations in respect of the delayed laying of the Annual Reports and Audited Accounts of the Indian Red Cross Society:—

“The Committee directs the Ministry to effectively supervise the timely completion of all the stages involved in the preparation and laying of the Annual Reports and Audited Accounts of the Society so that such delays in the laying of the papers were avoided in future.

The Committee further recommends that in case of delay in laying the Annual Reports and Audited Accounts of Indian Red Cross Society (IRCS), New Delhi, the Ministry should approach the Committee sufficiently in advance for extension of time.

The Committee impresses upon the Ministry to lay a copy of the statement giving reasons for not laying the Annual Reports and Audited Accounts within the stipulated time.”

4.114 The Committee expressed concern over the ever increasing arrears of pending Annual Reports and Audited Accounts of the Indian Red Cross Society (IRCS). It indicated the indifference of the Ministry in

68 addressing and resolving issues that had constrained it from fulfilling its statutory obligation of laying the Reports before Parliament.

4.115 The Committee noted that the Ministry conceded to have made mistake of not using the flexibility available to them under the rules that the AGM could be convened by the Minister, in the absence of Hon’ble President of India. Yet, such flexibility was not utilized for years. Subsequently, despite assurance given by the Secretary of the Ministry during her evidence to use that provision to clear the arrears by the Budget Session, 2011, the Ministry chose to seek another extension, on the same plea of non-availability of Hon’ble President of India to convene the AGM to adopt the Reports.

4.116 The Committee, though agreed to grant further extension of time, yet it expressed displeasure over the state of affairs in the Ministry that its commitment given to the Committee was yet to be kept.

4.117 The Committee recommended that the Ministry must scrupulously comply with the requirement under Section 4 of calling an AGM at least once a year, to adopt the Annual Reports and Audited Accounts of the Society. If needed the Ministry should utilize the flexibility available to it under the rules.

4.118 The Committee also recommended that instead of seeking further extensions, the Ministry should clear the arrears of pending Annual Reports/ Audited Accounts by the Monsoon Session 2011 of Parliament.

4.119 Considering that there were provisions available in the Act for timely approval of reports and accounts, the Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

(h) 132nd Report Gas Authority of India Limited (GAIL) and Petroleum and Natural Gas Regulatory Board (PNGRB)

4.120 From the information furnished by the Ministry as well as the depositions made by the Managements of GAIL and PNGRB before the Committee, the Committee noted that the main reason for delayed laying of Annual Reports/Audited Accounts before the Parliament was the Ministry’s casual approach. The GAIL had forwarded the Annual Reports for the years 2007-08, 2008-09 and 2009-10 on 21.10.2008, 10.09.2009 and 01.10.2010 to the Ministry of Petroleum and Natural Gas, well in time. As regards the PNGRB, they had also sent the Annual Report for the years 2007-09 in time to the Ministry of Petroleum and Natural Gas. Therefore, it is evident that the delay in laying the Annual Reports for the said years of both GAIL & PNGRB, was on the part of Ministry only.

4.121 The Committee was constrained to observe that the Ministry sat on the Annual Reports and Audited Accounts of both the GAIL and PNGRB for years together, ignoring their Parliamentary obligation. That was a serious lapse on the part of the Ministry. The matter needed to be looked into. The Committee was of the view that persistent delays in laying the papers was a serious matter, for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.122 The Committee observed that despite the anticipated delay, the Ministry did not bother to seek extension of time from the Committee. That was a reflection on the attitude towards its statutory obligations, taking the Parliament for granted. The Committee, therefore, recommended that the Ministry of Petroleum and Natural Gas should invariably approach the Committee for extension of time in case of delay in laying the Annual Reports and Audited Accounts of GAIL/PNGRB on the Table of Rajya Sabha, citing cogent reasons. The Committee directed the Ministry, the GAIL and the PNGRB to ensure compliance to this direction of the Committee.

4.123 The Ministry should also put in place a mechanism to ensure timely laying of the Annual Reports and Audited Accounts of the organisations under its control, i.e. within nine months from the date of closure of financial year.

69 (i) 133rd Report Centre for Railway Information System (CRIS), New Delhi.

4.124 The Committee expressed displeasure over the fact that there had been recurrent, regular inordinate delays in the laying the Annual Reports and Audited Accounts for the years 2003-04 to 2008-09. The Ministry was yet to lay papers for the year 2009-10, which should have been laid on the Table of Rajya Sabha by 31st December, 2010.

4.125 The Committee concurred with the suggestion regarding quarterly concurrent audit to save time and recommended that the CRIS, along with Ministry of Railways, should take into account the elaborate procedure of approvals while formulating the schedule of preparation of Annual Reports/Audited Accounts.

4.126 The Committee also recommended that the Ministry, in case of delay, should furnish the statement containing the reasons for the delay, which should invariably contain information, in chronological order, about the dates of finalisation of annual accounts, appointment of auditors, forwarding the accounts to the auditor, completion of audit, submission to C&AG, adoption of report by AGM, completion of translation and printing and forwarding of the papers to the Ministry. Such a statement should necessarily be laid along with the delay statement on the Table of the House, so as to enable the Committee to identify the stages, causes and extent of delay and suggest remedial measures, wherever required.

4.127 The Government Review laid on the Table of the House, along with the Annual Report and Audited Accounts of the CRIS, should be comprehensive and should cover broadly the performance of the Centre and contain a brief description of the critical areas of the functioning of the Centre for the year under review.

4.128 The Ministry should follow a proper procedure to seek extension of time and invariably approach the Committee sufficiently in advance to seek extension, in case of any delay in the laying of the papers, by citing convincing reasons and lay the papers on the Table of the House within the extended period.

4.129 The Committee emphasised that the CRIS, as well as the Ministry, should prepare a time schedule for each stage involved in the preparation of Annual Reports and Audited Accounts and monitor the same closely, so that papers of the CRIS are laid on the Table of the House within the prescribed time limit i.e., within nine months from the date of closure of the annual accounts. The CRIS and the Ministry should take all possible steps to ensure that pending reports of the Centre are laid on the Table of the House without further delay.

4.130 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation are accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

National Commission for Minorities (NCM), New Delhi

4.131 The Committee noted that in cases of delay, the Ministry never approached it to seek extension of time which shows disregard to the statutory provisions, as to the Committee’s recommendation in this regard. 4.132 The Committee expressed serious concern over the state of affairs, in as much as the National Commission for Minorities chose not to avail the annual Grants-in-aid as provided for in the Act, and rather persisted in drawing money from the annual budget allocated to the Ministry. The Committee found this practice contrary to the provisions and the spirit of Act. Therefore, the Committee recommended that while the relevant Section 10 should be retained, the Commission must avail the Grants-in-aid, as provided for in the Act, and maintain its annual accounts as per the requirements of Section 11 (i), and place them before the Parliament, as required in Section 13 of the Act. 4.133 The Committee took note of delay in protracted consultations with multiple Government Departments on the Commission’s recommendations and the delays in providing Action Taken Notes by the Departments. Considering the persistent delays in presenting Annual Reports before the Parliament, the Committee felt it was imperative that the Ministry and the Commission draw a time line for every stage of preparation of Annual Reports and Audited Accounts. Instead of waiting endlessly for the Central and State Governments to furnish their Action Taken Notes on the recommendations of the Commission, a deadline should be prescribed to the 70 relevant Governments and their Departments, for furnishing the Action Taken Notes to the Commission. One officer should be personally assigned with monitoring of the task.

4.134 The Committee also recommended that the Commission and the Ministry should work out a mechanism by which timely laying of Annual Reports and Audited Accounts was ensured.

4.135 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

National Human Rights Commission (NHRC), New Delhi

4.136 The Committee viewed with concern the non-compliance of statutory provisions of the Protection of Human Rights Act, 1993 by the National Human Rights Commission (NHRC).

4.137 The Committee noted the assurances given by the Ministry for adhering to time-line of nine-months for laying both the Annual Reports and Audited Accounts together. However, despite that the Annual Report for 2008-09 was not laid during the subsequent Budget Session, 2011.

4.138 The Committee concurred with the suggestion of the Secretary, NHRC, to amend the existing time- consuming system of collecting inputs from different divisions of NHRC and then circulating them to the Members for their inputs and recommended a more efficient system to be put in place to minimize the time.

4.139 The Ministry also did not furnish any cogent reason for persistent delay in laying the Audited Accounts. The Committee recognized that despite computerized format of NHRC accounts, the CAG returned the audited accounts only by November. However, no reasons for such inordinate delay were placed before the Committee. The Committee recommended that the Ministry of Home Affairs and the National Human Rights Commission (NHRC) may take up the issue with the CAG, so as to evolve a schedule for preparation of Annual Reports and Audited Accounts as per the time limit provided for.

4.140 The Committee had also observed that despite conceding the omission in not seeking the extension from the Committee, the Ministry did not seek extension from the Committee for laying the Annual Reports for the years 2008-09 and 2009-10 and the Audited Accounts for year 2009-10.

4.141 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

(j) 134th Report Bengal Chemicals and Pharmaceuticals Limited (BCPL), Kolkata

4.142 The Committee expressed displeasure over the persistent delay in laying of the Annual Reports and Audited Accounts of the Bengal Chemicals and Pharmaceuticals Limited (BCPL), Kolkata for the years 2004- 05 to 2007-08. The Ministry was yet to lay the papers for the years 2008-09 and 2009-10, which should have been laid on the Table of Rajya Sabha by 31.12.2009 and 31.12.2010, respectively.

4.143 The Committee was distressed to note that the Annual Reports were delayed due to shortage of skilled persons in Accounts Section of the BCPL. Finalisation of the accounts was delayed due to retirement/VRS of senior experienced persons in the recent past. The Committee recommended that steps should be taken to ensure finalisation of accounts within the fixed time schedule.

4.144 The Ministry should invariably seek extension of time and approach the Committee sufficiently in advance for the purpose in case of any delay in the laying of the papers, by citing convincing reasons and should ensure laying of papers on the Table of the House within the extended period.

71 4.145 The Committee emphasized that the Bengal Chemicals and Pharmaceuticals Limited (BCPL), Kolkata, as well as the Ministry should prepare a time schedule for each stage involved in preparation of the Annual Reports and Audited Accounts and monitor the same closely, so that papers of the BCPL are laid on the Table of the House within the prescribed time limit, i.e., within nine months from the date of closure of the annual accounts. They should take all possible steps to ensure that pending reports of the Company are laid on the Table of the House without further delay.

4.146 The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

UT Mission Authority, Sarva Shiksha Abhiyan, Andaman and Nicobar Islands

4.147 The Ministry and Sarva Shiksha Abhiyan, the UT Mission Authority, Andaman & Nicobar Islands must take all the required steps in future to lay the papers on the Table of the House within the stipulated time, as prescribed by the Committee.

4.148 The Committee, therefore, impressed upon the Ministry and Sarva Shiksha Abhiyan, the UT Mission Authority, Andaman & Nicobar Islands to take appropriate steps to finalise the accounts within the fixed time frame. The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

4.149 The Committee found that mere computerization of accounts may not ensure timely finalization of accounts. It required skilled manpower, having proficiency in timely finalisation of accounts. Therefore, a foolproof mechanism may be put in place to ensure timely finalisation of accounts. if need, proper training programmes may be organized.

Board of Apprenticeship Training (BOAT), Chennai

4.150 The Committee impressed upon the Ministry that in case the Annual Reports/Audited Accounts are not laid on the Table of Rajya Sabha in time, it should lay a statement, giving the reasons for not laying the same within the stipulated time.

4.151 The Committee, therefore, recommended that the issue of Audit Certificate should be taken up by the Ministry with AG (TN) and evolve a monitoring mechanism, so that the reports are laid on the Table of the House within the stipulated time.

4.152 The review of the performance of the organisation should be analytical, instead of being a routine statement. The review of the Ministry should be able to certify whether the papers present true and fair picture of the organisation.

4.153 The computerization of accounts of the organisation should be expedited, so that the accounts are processed in time and Annual Reports and Audited Accounts are laid on the Table of Rajya Sabha within stipulated time of nine months from the date of closure of accounts.

4.154 The Committee also recommended that the BOAT should suitably strengthen its internal audit machinery so that the process of finalisation of the Annual Accounts could be completed by mid-June each year. As regards the delay in the receipt of the final audit certificate, the BOAT had been directed to pursue the matter with the office of the AG (TN) to ensure that the issuance of the final audit certificate was not unduly delayed. Once the audit certificate was received, the meeting of the Board of Governors should be held early for adoption of the Annual Reports and the Audited Accounts. The BOAT should ensure that the Annual Reports and Audited Accounts are sent to the Ministry by the end of October each year. The Committee was of the view that persistent delays in laying the papers was a serious matter for which the Ministry and the organisation were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

72 (k) 135th Report Rajiv Gandhi National Institute of Youth Development (RGNIYD), Sriperumbudur, Tamil Nadu

4.155 The Committee expressed its displeasure over the fact that the Ministry has not addressed the reasons causing of the delay in laying the papers. It recommended that Ministry/ Department must ensure timely approval of Annual Reports/Audited Accounts by the Executive Council. The Ministry could also consider to get approval through circulation.

4.156 The Committee also recommended that in case of delay, the Ministry should furnish the statement containing the reasons for the delay, which should invariably contain information, in chronological order, about the date of finalisation of annual accounts, appointment of auditors, forwarding the accounts to the auditor, completion of audit, submission to C&AG, adoption of report by AGM, completion of translation and printing and forwarding the papers to the Ministry. Such a statement should necessarily be laid along with the delayed laying papers on the Table of the House, so as to enable the Committee to identify the stages, causes and extent of delay and suggest remedial measures, wherever required.

4.157 The Committee further recommended that the Government Review laid on the Table of the House along with the Annual Report and Audited Accounts of the Institute should be comprehensive. In addition to broad annual performance of the Institute, the Government’s Review must have separate para on financial performance of the organisation detailing the utilization of grants, achievement of objectives for which grants were given, internal revenue generation by the organisation, etc. A separate para in the Review should deal with the audit observations and if the Government agreed with the response given by the organisation to audit observations.

4.158 The Committee recommended that rules must prescribe timely approval of Annual Reports/Audited Accounts by the Executive Council.

All India Council for Technical Education (AICTE), New Delhi

4.159 The Committee expressed displeasure over the fact that despite the recommendations contained in its 120th Report, there had been no improvement in the situation regarding laying of papers of AICTE. The Ministry failed even to seek extension of time from the Committee. The Committee was, therefore, apprehensive of the assurance given by the Ministry. However, it expected the Ministry and the AICTE to scrupulously adhere to the statutory obligations towards Parliament. The Committee, accordingly, directed the Ministry to effectively supervise the timely completion of all the stages involved in preparation and laying of the Annual Reports and Audited Accounts of AICTE so that such delays in the laying of the papers were avoided in future.

4.160 The Committee reiterated its recommendations, particularly the Ministry’s taking up the matter of delay caused in the Office of DGACR in inspection and confirmation of audit certificate seriously, and evolved an effective mechanism, both to streamline and to monitor the process, with the co-operation of the Office of the DGACR.

4.161 The Committee noted that the All India Council for Technical Education (AICTE), New Delhi had already started computerization of its accounts in a phased manner under the policy of e-governance. That would certainly help in finalization of accounts in time. The Committee hoped that accounts would also be maintained on computer in regional offices of All India Council for Technical Education (AICTE), New Delhi.

4.162 The Committee impressed upon the Ministry to seek extension of time in cases of delay and also to lay a copy of the statement, giving reasons for not laying the Annual Report and Audited Accounts within the stipulated time.

4.163 The Committee was of the view that persistent delays in laying the papers was a matter of serious concern for which the Ministry and the Council were accountable. The responsibility for the persistent non- compliance of statutory requirements and Committee’s recommendations in this regard should be fixed.

73 Central Information Commission (CIC), New Delhi

4.164 The Committee noted that in cases of delay, the Ministry never approached it to seek extension of time, which showed disregard to the statutory provisions and to the Committee’s recommendations in this regard. 4.165 The Committee took note of delay in providing information to CIC by the Government Departments/public organisations and the delay in laying of papers in Parliament. Considering the persistent delays in laying Annual Reports before the Parliament, the Committee felt it was imperative that the Ministry and the Commission drew a time-line for every stage of preparation of Annual Reports. Instead of waiting endlessly for the Ministries/Departments and State Governments/UTs to furnish their information on implementation of RTI Act, a deadline should be prescribed, for furnishing the information to the Commission. A senior officer should be personally assigned the task of monitoring.

4.166 The Committee also recommended that the Commission and the Ministry should work out a mechanism by which timely laying of Annual Reports and Audited Accounts was ensured. Whenever inordinate delay was made in laying the papers, responsibility should be fixed.

(l) 136th Report Nehru Memorial Museum and Library (NMML), New Delhi

4.167 The Secretary, Ministry of Culture had submitted before the Committee that the Annual Report and Audited Accounts of NMML for year 2008-09 were presented to the House on 16th March, 2011. However, on scrutiny of the records, the Committee found that contrary to assertion of the Secretary, the Ministry of Culture, the reports for year 2008-09, were not laid on or prior to 16th March, 2011, instead, the same were laid on 23rd March 2011. To that extent, the statement of the Secretary, Ministry of Culture was incorrect and misleading.

4.168 The Committee was, therefore, inclined to suggest that the NMML, in consultation with the Ministry, should consider amending its Memorandum of Association, to facilitate timely approvals of annual reports and audited accounts. The audit procedures should also be amended, to facilitate an efficient and time-bound audit. The Committee was inclined to suggest that the NMML could hire an auditor nominated by the CAG, to audit its accounts under the guidelines of the CAG. The Committee, inter alia, suggested that the NMML must expand the usage of IT enabled computerization for prompt update and compilation of accounts. The feasibility of starting different processes simultaneously, which, could converge at a particular point of time so as to avoid delays, may also be considered. The annual reports and audited accounts should be presented and preserved in a digitized form, and uploaded on the Ministry’s/Organisation’s website. Such measures may help save the cost of printing the reports, and also the paper.

4.169 The Committee was surprised at such state of affairs where the Ministry appeared to have no control over the autonomous organizations, in order to make them fulfil their obligations under the Memorandum of Association. It was of the firm view that the Ministry cannot abdicate its responsibility under the plea that a certain organisation was of national repute or was headed by persons of eminence. It was imperative that the Ministry ensured scrupulous adherence by the organisations under its administrative control to their obligation towards the Parliament.

4.170 The Committee, for long, had apprehended that the Reviews by the Ministries had been a routine exercise, instead of being a critical appraisal of the performance. Such apprehensions had been vindicated by the admission of the Ministry of Culture that “the Ministry prepares a Review Statement, containing a gist of activities undertaken by the organization”. The Committee felt that the Reviews were not meant to be the gist of activities, but a critical appraisal of performance, against mutually agreed benchmarks. The Ministry’s Review must take cognizance of the audit observations, either contained in the final audit report or conveyed through letters to the management, and give comments on such observations in a separate section in the Review.

4.171 The Committee recommended that the NMML must strengthen its administrative and accounting departments, by recruiting professionals, skilled in the IT based computerization.

74 Sree Chitra Tirunal Institute for Medical Science & Technology, Thiruvananthapuram

4.172 The Committee observed that contrary to the schedule prepared by the Institute every year, including the year 2010-11, the accounts were submitted for audit after 30th June. Such delay at the initial stage tended to disturb the entire chronological sequence. The Institute submitted that the audit took place at three stages, i.e. Thiruvananthapuram, Bengaluru and Delhi, which took two to four months. However, the details provided in the delay statement did not indicate these stages of audit. The schedule provided by the Institute did not also specify the date by which the Institute Body should approve the audited accounts, before they are sent to the Ministry. Therefore, in the years 2007-08 and 2008-09, the approval of Institute Body was obtained even prior to compilation of audit, which indicated a lacunae in the audit procedure. The Committee expected that such shortcomings should have been noticed by the Ministry. In case of year 2009-10, the Institute body took over a month to approve the audited accounts.

4.173 The Committee noted that the Ministry and the Institute continued to take similar pleas whose resolution the Committee had recommended in its 87th report. Moreover, the delays occurred patently due to delays on the part of the Institute, and not as much due to the audit. The audit was complete within a period of two to four months, as provided in the schedule prescribed by the Institute. However, the accounts were submitted for audit with a significant delay. The consequent delays in audit led to delay in translation and printing of Reports, as the audit certificates were required to be included in the Audited Accounts. The Committee recommended that the Ministry and the Institute should furnish accounts for audit within the stipulated time, prior to 30th June.

4.174 The Committee observed that in respect of the papers for the years 2008-09 and 2009-10, extension was sought after passage of the due date of 31st December. It therefore, reiterated its recommendation contained in its 87th report that the extensions needed to be sought from the Committee well before the last date of due date. The Committee also expressed reservation over recurrent extensions every year. The repeated delays in laying the Reports, was a serious issue, responsibility for which must be fixed.

4.175 The Committee observed that under the Act, the Secretary, Department of Science and Technology was Member of both the Institute Body and the Governing Body of the Institute. Similarly the Financial Advisor of the Department of S&T was a member of the Institute Body. Despite this, it failed to lay comprehensive separate Review statement. The Ministry could have taken the advantage of presence of Secretary & FA in the Institute Body and prepared a more comprehensive and objective review statement. The Committee, therefore, reiterated its recommendation that the Ministry should lay a comprehensive review statement, covering broad performance of the Institute, and a brief description of the critical areas, along with the Annual Reports and Audited Accounts of the Institute.

STCL, Bangalore

4.176 The Committee noted that there was a time lag of almost one year between approval of the accounts for the year 2008-09 in the Annual General Meeting and the eventual submission of Annual Report and Audited Accounts to the Ministry of Commerce and Industry. The Committee felt that the delay could have been curtailed. The accounts for the year 2008-09 were ready by 15th May, 2010, i.e. prior to the time limit of 30th June for submission of accounts of 2009-10 for audit. The Committee was, therefore, not convinced with the argument that there was spillover effect of 2008-09. It was of the view that the Company did not take prompt action to submit the papers for the year 2008-09, which were eventually submitted to the Ministry almost one year after being approved in the AGM. The Company could have managed the spill over effect in 2009-10.

4.177 The Committee, therefore, cautioned the Ministry and the Company that Parliamentary norms of seeking extension from the Committee, in the event of delay, must be adhered to. The Ministry must give valid reasons for seeking extension. However, seeking extension could not be an unending exercise. It was upon the Ministry and the Company to resolve the issues causing the delay, because recurrent annual extensions for similar reasons may be taken adversely by the Committee while considering the requests for extension. In this regard, in case of repeated delays in laying, responsibility must be fixed.

75 4.178 The Committee was of the view that the as per the Regulations on Audit and Accounts, 2007, the Company should undertake and integrate IT technologies in accounting and auditing procedures, for a transparent and efficient audit. The Committee, therefore, recommended the Ministry and the Company should utilize available Information Technologies in all its branches, for concurrent compilation of accounts, for a prompt and transparent audit.

(m) 137th Report Kerala State Agro-Industries Corporation Limited

4.179 The Committee observed with utmost reservation that its recommendations and observations made in its previous 87th Report, had not been complied with. The Committee was therefore, inclined to reiterate its recommendations.

4.180 The Committee also found that despite specific responsibility given to the Ministry to monitor and ensure timely laying of Reports, the Ministry had chosen to limit its role to routine meetings and reminders, instead of fixing responsibility. In view of the schedule provided by the Corporation during the interaction with the Committee for laying the pending Reports, the Committee found its apprehensions being vindicated. The Committee, while considering the latest request for extension till 31st December 2011, had suspected that the Ministry was not in a position to comply with extension and that the Ministry had made it a routine to seek six monthly extensions. However, as per the schedule, the Corporation proposed to lay the pending Reports till 2009-10, only by 31st August 2012. The Committee expressed its strong reservation over the habit of seeking extensions from the Committee as a matter of routine. The Committee, therefore, cautioned the Ministry that repeated extensions cannot be taken for granted. Repeated Delays in laying the Reports were a violation of statutory obligation towards Parliament and responsibility for which must be fixed.

4.181 The Committee also recommended that recruitment of skilled manpower and computerization must be expedited.

4.182 The Committee took strong objection to the violation of provisions of Companies Act. That the statutory meetings were not convened for the years whose accounts were not ready, was indeed a breach of statutory provision. In view of such assertion, the Committee wondered if there would be any relevance of audited accounts that were adopted after a delay of five years. The Committee was inclined to suggest that the detailed minutes of the meetings of Board and the AGM, in which audited Accounts are to be adopted, must be appended with the audited accounts to be laid before the House. Such minutes will give the Parliament an impression about the discussions in these bodies over delayed accounts.

Sarva Shiksha Abhiyan, Kerala

4.183 The Committee recommended that the Ministry of Human Resource Development should take up the issue of timely appointment of auditors, so that the audit could be conducted within a reasonable time.

4.184 The Committee observed that though elaborate schedules for timely compilation and presentation of Reports had been prescribed by the Ministry of Human Resource Development (Department of Higher Education), they were seldom followed in practice. Apparently, there was no mechanism for enforcing such schedules, apart from routine communications and review meetings by the administrative Ministry. The repeated delays was a matter of serious concern and Ministry and the Society needed to find a solution and also to fix responsibility for repeated failure to adhere to the prescribed schedule.

4.185 The Ministry had admitted that there had been delay of 3-6 months at every stage. It was a fact that the initial delay led to cascading delays at successive stages of audit. The Committee’s apprehensions that delays took place due to delay in furnishing replies to the audit queries were also conceded by the Ministry. The excuse of non- availability of Hindi Translation in time and the delay in receiving audit certificate was not very convincing. The Ministry should monitor timely compilation and submission of accounts for the audit.

4.186 Despite elaborate procedure of Review and schedule, the situation had not changed over the years. The Committee expressed concern over the efficacy of such Review, without adequate results. 76 4.187 The Committee was of the view that in the interest of concurrent monitoring of utilization of funds and prompt compilation of accounts, the SSA Societies must undertake computerization of their accounts. Such an exercise will require resources for procurement of computer hardware, software and skilled personnel. The parent Ministry or the State Governments should provide for such an expenditure in their components for SSA.

Kidwai Memorial Institute of Oncology, Bangalore

4.188 The Committee took note of the fact that the Institute did not have sufficient man power. However, it was not incused to accept the excuses where breach of statutory obligation towards Parliament was sought to be rationalized on patently administrative ground. There must be provision in the rules for such avoidable exigencies.

4.189 Subsequent to the Committee’s study visit in July 2011, the Ministry laid before the House the Annual Report and Audited Accounts for year 2004-05 on 8th September 2011. It had been stated in the Government’s Review Statement that during 2004-05, the Institute received Rs. 3 crore from the Union Government. As such, it was required to lay its Annual Report and Audited Accounts within nine months of the closure of Financial Year 2004-05. However, in the delay statement which was laid along with Reports, it was stated that the Ministry had sent these Reports of Rajya Sabha Secretariat twice – first time on 23rd November, 2006, but Reports could not be laid due to certain discrepancies, subsequently on 27th November, 2007, the Reports were submitted the second time to the Secretariat, but could not be laid. However, the reasons for not laying the Reports, had not been elaborated. Even in the replies to the Committee’s queries, these facts were never brought to the notice of the Committee. To the Committee’s query whether the Ministry reminded the Institute of the delays, the Institute the merely shifted the onus of replying the query on the Ministry, but the issue of submitting the Reports (2004-05) was never brought to the knowledge of the Committee. The Committee, therefore, sought a detailed reply in this regard from the Ministry, at the earliest.

4.190 The Committee took note of the repeated extensions sought by the Ministry despite assurance given to the Committee to lay the Reports in the Monsoon Session. The Committee took strong exception to lackadaisical approach of the Ministry in this regard. The Ministry should realise that recurrent extensions cannot be allowed. Repeated delays was a serious matter for which responsibility needed to be fixed. In the event of unavoidable delay, the reasonable rationale of delay must be indicated, instead of seeking a blanket extension. The Committee was particularly concerned over the breach of assurance given to it during the study visit. The Ministry did not lay the pending Reports since 2005-06, despite assuring the Committee during the study visit.

4.191 The Committee took note of the rules regarding meetings of the Governing Council in a year, and expected that the laying of Reports should not be delayed for want of approval from the Governing Council. The Ministry should also explore the possibility of appending minutes of the meeting of the Governing Council, in which Reports are approved, with the Audited Accounts.

4.192 The Institute should implement web-based ITs for concurrent accounting, monitoring the utilization of funds and prompt and transparent auditing.

(n) 138th Report Commissioner for Linguistic Minorities, Allahabad

4.193 The Committee impressed upon the need to adhere to the Constitutional mandate. It, therefore, recommended that the Commissioner for Linguistic Minorities should generate awareness about rights of linguistic minorities and obligations of the Governments in this regard. They may consider to conduct workshops for the nodal officers of the State and UT Governments, to sensitise them. The Commissioner should use publicity channels to educate people of the rights of linguistic minorities.

4.194 The Committee observed that despite directions of the President of India in respect of July-June cycle, every Report was being sent to the Ministry with considerable delay. Also, for every successive year there was a significant time lag between the submission of Report to the Ministry and approval by the President. The

77 Committee found this time lag for successive years inexplicable. The Ministry must take steps to overcome these lacunae and fulfill its Constitutional obligation. The Committee, therefore, recommended that the Ministry, for the sake of uniformity, may explore the possibility of adhering to April-March cycle, instead of the current July-June cycle.

4.195 The Committee also expressed its reservation over the delay in appointing the Commissioner for Linguistic Minorities in time which, in turn, impacted the performance of the organisation in meeting its Constitutional mandate and caused delay in preparation and laying of Reports before Parliament. The Committee wondered how a Government could make its own omissions an excuse for breaching the constitutional obligations.

4.196 The Committee, having considered the schedule provided by the Commissioner for Linguistic Minorities, observed that the schedule was never adhered to, nor any appreciable steps were taken to implement such schedule. The bottlenecks in implementation of the schedule needed to be identified and checked.

4.197 The Ministry of Minority Affairs should monitor the progress in resolving the issue of understaffing in the office (s) of Commissioner of Linguistic Minorities. The Committee was dismayed over the large number of positions having remained vacant for a significant period of time, which had affected the Commission to meet its statutory obligations.

4.198 The Committee also recommended that in the event of recurring delays, responsibility should be fixed.

National Commission for Women (NCW)

4.199 The Committee observed that in addition to delays occurring due to late receipt of Action Taken Notes from the concerned Ministries/Departments, there had been inexplicable delays in obtaining the Audit certificates. The Committee noted that the Rules prescribed that Accounts are required to be submitted to the Audit Officer (CAG), on or before the last day of June, for audit and report and that within thirty days of receipt of Audit Report, the Commission should remedy any defect or irregularity pointed out therein and report to the Central Government and the Audit Officer about the action taken by it thereon. Once audit certificate is received, the audited accounts are incorporated with the Annual Report. The Committee wondered if the delays took place due to delay in addressing the infirmities raised by the auditor. The Committee, accordingly, recommended that the causes of delay in obtaining the audit certificate must be addressed.

4.200 Also, despite express provisions regarding the timelines in National Commission for Women (Annual Statement of Accounts and Annual Report) Rules, 1995, there had been significant delays in finalizing the Annual Reports of the National Commission for Women. The Committee was constrained to note that this situation had persisted over the years. As such, the Ministry and the Commission should not take the recurrent extensions of time for granted the persistent delays is a matter of serious concern.

4.201 Considering that delays occurred pending the Action Taken Notes from the concerned Ministries/Departments, the Ministry and Commission should fix a date for receiving such notes and any further delay should, accordingly, be reflected in the Memorandum of Action Taken. In this regard, the existing mechanism of Inter-Ministerial Committee should be further strengthened to ensure timely submission of ATNs and also to make an appraisal of the action taken by the concerned Ministry/Department on the recommendation of the Commission.

4.202 The Committee considered that given the causes of delays, the Web-based computerization could help the Commission in removing delays, by communicating with the concerned Ministries/Departments and monitoring the action taken on its recommendations.

4.203 The Committee also emphasised that in cases of persistent delays, responsibility will have to be fixed. 78 National Institute of Siddha

4.204 The Committee observed that there had been duplication in the audit procedure, i.e. audit by the Audit firm and subsequent audit by the office of Accountant General. The Committee wondered if such duplication was warranted or it could have been avoided, considering that bye-laws of NIS did not provide for audit by the Chartered Accountant. Instead, the two audits could have been complemented for timely laying of the audited accounts.

4.205 The Committee found the delay in issuing audit certificate by the Accountant General rather remarkable, particularly when the first stage of the audit was done by a Chartered Accountant firm. The Committee believed that either the audit by Accountant General had found infirmities with the audit by the Chartered Accountant or there had been delays on the part of AG. The Committee, therefore, suggested that the NIS or the Ministry should take up the issue with the AG to evolve a mechanism that the audit by the CA is done in conformity with the standards and timelines prescribed by the AG.

4.206 The Committee recommended that the Department of AYUSH and the Institute should take appropriate steps to fill up the administrative and accounts positions, which had been approved by the Governing Council of the Institute.

4.207 The Committee observed that the NIS has laid its Annual Report/Audited Accounts for year 2009-10, on 24th March 2011, with a delay of two months and 23 days. But no extension was sought from the Committee.

(o) 139th Report National Projects construction Corporation Limited (NPCC)

4.208 The Committee recommended that in case of delay the Ministry, should furnish the details about the reasons for the delay, which should invariably contain in chronological order, the dates of finalization of annual accounts, appointment of auditors, forwarding the accounts to the auditor, completion of audit, submission to C&AG, adoption of report by AGM, completion of translation and printing and forwarding of the papers to the Ministry. Such a statement should necessarily be laid, along with the delay statement, on the Table of the House, so as to enable the Committee to identify the stages, causes and the extent of delay and suggest remedial measures, wherever required.

4.209 The Government Review laid on the Table of the House, along with the Annual Reports and Audited Accounts of the CRIS, should be comprehensive and should cover broadly the performance of the corporation and contain a brief description of the core areas of the functioning of the corporation for the year under review.

4.210 The Ministry should follow a proper procedure to seek extension of time and invariably approach the Committee, sufficiently in advance, to seek extension, in case of any delay in the laying of the papers, by citing convincing reasons and lay the papers on the Table of the House within the extended period.

4.211 The Committee emphasized that the NPCC, as well as the Ministry, should prepare a time schedule for each stage involved in preparation of Annual Reports and Audited Accounts and monitor the same closely, so that papers of NPCC are laid on the Table of the House within the prescribed time limit i.e., within nine months from the date of closure of the annual accounts as per its recommendations.

4.212 The Committee was of the view that persistent delays in laying the papers was a serious matter, for which the Ministry and the organization were accountable. The responsibility for the persistent non-compliance of statutory requirements and Committee’s recommendations in that regard should be fixed.

All Indian Institute of Medical Sciences (AIIMS), New Delhi 4.213 The Committee, after comparing the schedule prescribed for preparation of the Annual Reports and Audited Accounts with actual time taken during 2008-09 and 2009-10, found it contrary to the assertion made by the Secretary, Ministry of Health and Family Welfare that there was no delay in the audit. The audit 79 certificates were received by the first week of November. Instead, the delays took place in translation/ editing and in obtaining approval of the Governing Body and the Institute Body of the AIIMS, the responsibility for which squarely lay with the Institute and the Ministry.

4.214 The Committee found that the practice tended to flout the recommendations of the Committee. The recommendation, inter alia, states:

“In case of delay …….. a statement explaining the reasons for delay should also be laid on the Table of the House along with the documents. If there is likely to be a delay in laying a paper within the stipulated period, the administrative Ministry should approach the Committee sufficiently in advance for extension of time by explaining the reasons for doing so. A reference should be made to the extension given by the Committee in the paper when laid” (Ist Report)

“The statements giving reasons for delay should contain information, in chronological order, setting forth the dates of compilation of accounts, their submission to audit, receipt of draft audit report, replies given to audit queries, receipt of final audit report, translation and printing of accounts and their submission to the Ministry for laying on the Table of the House, so that the House may identify the stages, causes and extent of delay and suggest remedial measures wherever required.” (22nd Report) The Committee reiterates its recommendation in respect of seeking prior extension from it in case of delay in laying the papers and that the request for extension should give the details of the causes of delay. The Ministry should also lay before the House a Delay Statement alongwith the Annual Report and Audited Accounts giving chronological details as laid down in its recommendation. Therefore the Ministry must eschew from laying a generic delay statement in the House directly.

4.215 The Committee took note of the assurance of the Ministry in respect of delays and cautioned that recurrent delays in laying the papers was a matter of serious concern and that repeated extensions cannot be taken for granted. The Ministry and the Institute must fix the responsibility for the recurrent delays.

4.216 The Committee also recommended that the Rules must provide for regular meetings of the Governing Body and the Institute Body of AIIMS, so that Reports are approved in a time-bound manner. The Ministry may consider to append the minutes of the Governing Body and Institute Body Meetings, in which Annual Reports and Audited Accounts are adopted, with the Reports, while laying the same in the House.

University Grants commission (UGC)

4.217 The Committee observed that there had been delays in submission of accounts for audit due to delay in release of last instalment by the Ministry. There had also been delays in furnishing the Draft audit reports and subsequently, in furnishing the replies thereon by the UGC. The Committee felt that efforts should be made to reduce the time taken in release of instalment by the Ministry and also in furnishing the replies to the Draft Audit Report.

4.218 The Committee observed that deadlines were never adhered to. The Bureaux and the Regional Offices submitted their inputs late and there were delays at every successive stage of vetting and proof reading. While the Committee took a very strong view over persistent delays due to similar reasons, it did empathise with the Commission over the delays due to organisational factors. The Committee recognised that the Commission was facing acute shortage of manpower, which was reflected in the delays in meeting its statutory obligations. The Committee was also averse to practice of employing contract workers in crucial assignments. With contract workers, there was an imminent danger of losing institutional memory, which was so crucial for the evolution and efficiency of the institution. The Committee acknowledged that with Staff Selection Commission declining to conduct recruitment on behalf of the Commission, the problem of shortage of staff had further accentuated. The Committee recommended that the Ministry must resolve the staffing issues of UGC expeditiously and take up the issue with Staff Selection Commission and the concerned Department of Personnel and Training.

80 4.219 The Committee observed that no extension was sought in case of delay in submitting the Annual Report for the year 2008-09. Even in case of 2007-08 and 2009-10, the Reports were eventually laid only after the extended period had lapsed. The Committee was dismayed at the frivolous grounds like inadequate copies of Reports, on which statutory obligations towards Parliament were allowed to be undermined by the Ministry and the UGC. Onus of making amends to such minor issues, lay within the competence of UGC and the Department of Higher education.

4.220 The Committee felt that it would perhaps not be sufficient only to prescribe a time schedule. The previous experience had shown that the Schedules were seldom adhered to due to practical exigencies. It was, therefore, necessary that the Ministry ought to firm up the supplementary processes like timely receipt of Utilisation Certificates and release of instalment,that lead to compilation of accounts and their timely submission for audit.

4.221 The Committee noted the delays in compilation of accounts and their submission for audit, due to delay in releasing the instalments of grants. This issue needed to be addressed by the Ministry, in consultation with the UGC. However, the Committee had been apprehensive of avoidable delays due to delay in approvals by the Governing bodies of Organisations. This was entirely internal issue of the UGC and had to be addressed by them. The Rules must specifically provide for regular and timely meetings of the Commission, that would also help in monitoring of performance and utilisation of annual grants.

VI. Secretariat 4.222 The Committee Section (COPLOT) consisted of one Assistant Director, one Committee Officer, one Research Assistant, one Sr. Clerk and one Jr. Clerk who provided the Secretariat assistance to the Committee. The Joint Secretary, Director, and Deputy Director remained incharge of the Branch.

4.223 To assist the Committee in its work, the Annual Reports and Audited Accounts of various Government Companies/Organisations laid on the Table of Rajya Sabha and the material received from the Ministries/ Departments/Government Companies/Organisations were studied, on the basis of which points were culled out and questionnaires/Memoranda /points for discussion on the subject for evidence/visits were prepared for the use of the Committee.

4.224 The works relating to drafting of reports by the Committee, their consideration and approval along with their presentation, laying, printing and distribution were undertaken.

81 ANNEXURE-IV (See Para 4.3)

Details of sittings of the Committee on Papers Laid on the Table

Sl. Date Duration Subject No. Hrs. Mts. 1. 10.01.2011 1.10 Delayed laying of Annual Reports and Audited Accounts of Commissioner of Linguistic Minorities, Allahabad and Nehru Yuvak Kendra Sangathan, New Delhi.

2. 25.01.2011 0.40 The Committee considered its draft 125th and 126th Reports.

3. 11.02.2011 1.40 The Committee heard the representatives of (i) The Office of Comptroller and Auditor General of India and (ii) Institute of Chartered Accountants of India. It also considered and adopted its draft 125th and 126th Reports.

4. 16.03.2011 1.10 Delayed laying of Annual Reports and Audited Accounts of Nehru Memorial Museum and Library (NMML), New Delhi.

5. 18.04.2011 2.05 Delayed laying of Annual Reports and Audited Accounts of Jawahar Institute of Mountaineering and Winter Sports, Pahalgam and National Commission for Safai Karamcharis. The Committee also considered and adopted its draft 127th and 128th Reports.

6. 09.05.2011 3.15 Delayed laying of Annual Reports and Audited Accounts of AIIMS, AICTE, JNU, SPA, DU, IGNOU and Ed. Cil. The Committee deliberated upon the issue raised by Dr. E.M. Sudarsana Natchiappan, M.P. and Member of the Committee, regarding mandate of the Committee.

7. 23.05.2011 2.00 Delayed laying of Annual Reports and Audited Accounts of various States Sarva Shiksha Abhiyans, Aligarh Muslim University and Research and Information System (RIS).

8. 24.05.2011 0.35 Delayed laying of Annual Reports of Central Information Commission, (CIC), New Delhi.

9. 07.06.2011 1.05 Delayed laying of Annual Reports and Audited Accounts of State Agro Industries Corporation of Jammu & Kashmir, Bihar, Assam, Orissa, Kerala & M.P.

10. 08.07.2011 2.05 The Committee considered and adopted its draft 129th, 130th & 131st Reports. It also considered Memoranda Nos. 1 to 6, and the replies of the Office of C&AG on the issues raised by the Committee.

11. 4.8.2011 1.15 The Committee considered Action Taken Replies furnished by the Ministry on 125th and 126th Reports of the Committee. The Committee also considered and adopted its draft 132nd, 133rd & 134th Reports.

12. 25.8.2011 1.35 The Committee heard the representative of Office of the Comptroller and Auditor General of India and National Informatics Center.

82 Sl. Date Duration Subject No. Hrs. Mts. 13. 5.9.2011 0.35 The Committee considered and adopted its draft 135th & 136th Reports. 14. 15.9.2011 1.00 The Committee considered a brief Resume of the Committee regarding the work done by it during last 1 year. 15. 17.10.2011 1.30 Delayed laying of Annual Reports and Audited Accounts of National Project Construction Corporation Limited and National Commission for Women (NCW), New Delhi 16. 02.11.2011 1.10 Committee heard the views of Secretary, Department of Expenditure and representatives of Controller General of Accounts on the delayed laying of Reports of autonomous bodies and the Government Societies. 17. 09.11.2011 1.20 The Committee heard the views of Secretary, Ministry of Human Resource Development (Department of Higher Education) on the delayed laying of Annual Reports of some Institutions. 18. 16.11.2011 2.25 Delayed laying of Annual Reports and Audited Accounts of (i) National Culture Fund (ii) National Commission for Production of Child Rights (iii) Central Inland Water Transportation Corporation Ltd. (iv) Sports Authority of India.

19. 15.12.2011 0.55 The Committee heard the views of Special Secretary, Ministry of Social Justice & Empowerment on the delayed laying of Annual Reports of some Organisations. The Committee also considered and adopted its draft 137th, 138th and 139th Reports.

83 CHAPTER-V COMMITTEE ON ETHICS

I. Composition of the Committee

5.1 The Committee was constituted on 29th September, 2010 with the following composition:—

1. Dr. Karan Singh — Chairman 2. Shri S. S. Ahluwalia 3. Shri Satish Chandra Misra 4. ϒShri Sitaram Yechury 5. Shri Shivanand Tiwari 6. Shri Tiruchi Siva 7. Shri Tariq Anwar 8. Shri Pyarimohan Mohapatra 9. Shri Mohan Singh 10. Dr. V. Maitreyan

II. Review of work done

(a) Sittings of the Committee 5.2 During the year 2011, the Committee held three sittings* lasting for three hours and five minutes. A statement showing the date of sitting of the Committee held during the period under review, the duration of sittings and the main agenda taken up is given in Annexure-V.

(b) Study Visits — Nil

III. Reports Presented — 5.3 During the year 2011, the Committee did not present any report to the House.

IV. Secretariat

5.4 The Committee Section (Ethics) headed by an Assistant Director constitutes the Secretariat of the Committee. Additional Secretary and a Director remained incharge of the Branch. 5.5 The work of maintenance of the Register containing information of “Members’ Assets and Liabilities” under the Members of Rajya Sabha (Declaration of Assets and Liabilities) Act, 2004 and the “Register of Members’ Interests” in terms of Rule 293 of the Rules of Procedure and Conduct of Business in the Council of States, was undertaken by the Section. 5.6 During the period under reference, nineteen complaints alleging breach of Code of Conduct were received. The complaints were examined as per the provisions of the relevant rules.

5.7 The Section also processed thirty-eight requests received from the CPIO, Rajya Sabha Secretariat for supply of information under the Right to Information Act, 2005. The requisite information was furnished within the stipulated time. 5.8 During the year, information as contained in the Register of Members’ Interests was provided to three applicants with the permission of Chairman, Committee on Ethics, under Right to Information Act, 2005 and Rule 293(3) of the Rules of Procedure and Conduct of Business in the Council of States. Before furnishing the said information the matter was brought to the notice of Hon’ble Chairman also.

ϒ Nominated by Hon’ble Chairman, Rajya Sabha on 20th September, 2011, under rule 287 of Rules of Procedure and Conduct of Business in the Council of States to fill up the vacancy caused due to retirement of Shri Sitaram Yechury from the membership of Rajya Sabha * A sitting of Committee scheduled for 14/01/11 could not be duly constituted for want of quorum. 84

Annexure-V (See Para 5.2)

Details of the sittings of the Committee on Ethics during the year 2011.

Sl. Date Duration Subject No. Hrs.-Mts.

1. 14.02.2011 0.30 The Committee considered a reference dated 30th December, 2010 of Hon’ble Chairman, Rajya Sabha forwarding therewith a letter dated 23rd December, 2010 of Shri , Minister of State (Independent charge) of the Ministry of Environment and Forests, regarding conflict of interest issues concerning Members of Parliament vis-à-vis the Ministry of Environment and Forests.

2. 15.03.2011 1.20 The Committee heard Shri Jairam Ramesh, Minister of State (Independent charge) of the Ministry of Environment and

Forests, in context of his letter dated 23rd December, 2010 regarding conflict of interest issues concerning Members of Parliament vis-à-vis the Ministry of Environment and Forests.

3. 22.07.2011 1.15 The Committee considered a ruling dated the 3rd June, 2011, of the Central Information Commission directing that the information of Members Interests be given to the RTI applicant as disclosure of information from the Register of Members’ Interests cannot be considered as an act of invasion of privacy of individual Members of Parliament.

85 CHAPTER-VI COMMITTEE ON COMMERCE I. Composition of the Committee 6.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

1. Shri Shanta Kumar ⎯ Chairman

RAJYA SABHA

2. Prof. P. J. Kurien 3. Shri V. Hanumantha Rao 4. Dr. E.M. Sudarsana Natchiappan 5. Shri Arun Jaitley 6. Shri Jai Prakash 7. Shri K.N. Balagopal 8. Shri Ishwarlal Shankarlal Jain 9. #Shri Prem Chand Gupta 10. @Shri Y. S. Chowdary

LOK SABHA

11. Shri G. S. Basavaraj 12. Shri Kalikesh N. Singh Deo 13. Shri K. P. Dhanapalan 14. Shri Shivarama Gouda 15. Shri Sk. Saidul Haque 16. Shri Dilip Singh Judev 17. Shri Nalin Kumar Kateel 18. Shri O. S. Manian 19. Shri Somendra Nath Mitra 20. Shri Deoraj Singh Patel 21. Shri Sanjay Dina Patil 22. Smt. Kamla Devi Patle 23. Shri Jagdish Singh Rana 24. Shri Gutha Sukender Reddy 25. Shri Modugula Venugopala Reddy 26. Shri Vishnu Deo Sai 27. Shri M. I. Shanavas 28. Shri Yashvir Singh 29. Shri Rajaiah Siricilla 30. Shri K. Sudhakaran 31. Shri Thol Thirumaavalavan

______

# Nominated w.e.f. 17th September, 2010 @ Nominated w.e.f. 17th September, 2010 86 6.2 The Committee was re-constituted on 31st August, 2011 with the following composition:—

1. Shri Shanta Kumar ⎯ Chairman

RAJYA SABHA

2. Prof. P. J. Kurien 3. Shri V. Hanumantha Rao 4. Dr. E.M. Sudarsana Natchiappan 5. Shri Arun Jaitley 6. Shri Jai Prakash 7. Shri K.N. Balagopal 8. Shri Ishwarlal Shankarlal Jain 9. Shri Prem Chand Gupta 10. Shri Y. S. Chowdary

LOK SABHA 11. Shri G. S. Basavaraj 12. Shri Kantilal Bhuria 13. Shri C.M. Chang 14. Shri K. P. Dhanapalan 15. Shri Anant Gangaram Geete 16. Shri Shivarama Gouda 17. Prof. Sk. Saidul Haque 18. Smt. Kaiser Jahan 19. Shri Dilip Singh Judev 20. Shri Nalin Kumar Kateel 21. Shri Dayanidhi Maran 22. Shri Vishnu Deo Sai 23. Shri M. I. Shanavas 24. Shri Jagdish Sharma 25. Shri Rajaiah Siricilla 26. Shri Dinubhai Boghabhai Solanki 27. Shri K. Sudhakaran 28. Shri Dharmendra Yadav 29. @Shri Modugula Venu Gopala Reddy 30. Vacant 31. Vacant

The Ministry of Commerce and Industry (Department of Commerce and Department of Industrial Policy and Promotion) is under the purview of the Committee’s scrutiny.

@ Nominated w.e.f. 25th November, 2011

87 II. Subjects selected for Examination

6.3 During 2011, the subjects taken up by the Committee were as under:—

Sl. Subjects Status No.

1. Export Promotion of Foodgrains-Premium 98th Report of the Committee on Non-Basmati Rice and Wheat Export Promotion of Foodgrains- Premium Non-Basmati Rice and Wheat was presented to Rajya Sabha and laid on the Table of Lok Sabha on 11.08.2011 simultaneously.

2. Export Promotion of Agricultural and 99th Report of the Committee on Processed Food Products Export Promotion of Agricultural and Processed Food Products was presented to Rajya Sabha and laid on the Table of Lok Sabha on 21.12.2011 simultaneously.

3. FDI in Pharmaceutical Sector Examination of the subject is in progress.

4. Performance of Plantation Sector-Tea and -do- Coffee Industry.

5. Activities and Functioning of India Trade -do- Promotion Organisation (ITPO)

6. The Impact of Free Trade Agreement The Committee is yet to meet on the between India and other neighbouring subject. countries including ASEAN, on the domestic industry and plantation sectors.

7. Free Trade Agreements, and other bilateral & The Committee is yet to meet on the multilateral trade agreements. subject.

III. Review of work done (a) Sittings of the Committee 6.4 Till December 2011 the Committee held 20 sittings lasting for about twenty eight hours and four minutes. The details of the meetings are given in Annexure-VI. (b) Sittings of the Sub-Committees

6.5 No Sub-Committee was constituted during the period under review.

6.6 Verbatim record of proceedings of each sitting of the Committee, in which evidences were taken, was kept.

88 (c) Study Visit (s) 6.7 During the year, the Committee undertook four on-the-spot study visits to various institutions/projects sites, etc., as per the details given below, in connection with the subject(s) under examination:—

Sl. Dates of visits Places visited Subjects No. 1. 28th January to 4th Kerala, Karnataka and Export Promotion of Agricultural and Processed February, 2011 Maharashtra Food Products

2. 27th June to 5th Chandigarh and Export Promotion of Agricultural and Processed July, 2011 Himachal Pradesh Food Products and Export Promotion of Foodgrains-Premium Non-Basmati Rice and Wheat

3. 31st October to 4th Gujarat Export Promotion of Agricultural and Processed November, 2011 Food Products

4. 22nd November, India International Activities and Functioning of India Trade 2011 Trade Fair, Pragati Promotion Organisation (ITPO) Maidan, New Delhi

IV. Reports presented 6.8 During the year 2011, the Committee presented/laid the following Reports in both the Houses: Sl. Number Date (s) of Subject No. of the Presentation/Laying Report (s) in Rajya Sabha/ Lok Sabha

1. 95th 24.02.2011 Performance of Cement Industry.

2. 96th 24.02.2011 96th Report on Action Taken by Government on the Observations/Recommendations of the Committee contained in its Ninety Third Report on Demands for Grants (2010-11) of the Department of Commerce, Ministry of Commerce and Industry.

3. 97th 24.02.2011 97th Report on Action Taken by Government on the Observations/Recommendations of the Committee contained in its Ninety Fourth Report on Demands for Grants (2010-11) of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

4. 98th 11.08.2011 98th Report of the Committee on Export of Foodgrains- Premium Non-Basmati Rice and Wheat.

5. 99th 21.12.2011 Export Promotion of Agricultural and Processed Food Products.

6.9 Minutes of sittings of the Committee on Commerce relating to various Reports presented / laid in the Houses were prepared, alongwith the respective Reports.

89 V. Summary of Recommendations 6.10 Summary of important recommendations of the Committee made in its reports presented during 2011 is as under:—

(a) 95th Report on Performance of Cement Industry

6.11 The Committee hopes that the target to add 110 million tonnes capacity by the end of the 11th Plan will be achieved. The Committee also feels that while increasing the capacity and adopting modern technology, aspects relating to employment generation should also be kept in view. The Committee also observes that while going for technological upgradation of the existing plants there should not be any retrenchment of labour. 6.12 The Committee is optimistic about significant expansion of cement industry, because of the construction activity of major infrastructural projects across the country. The Committee feels that there is a need to boost cement demand in key segments of the national economy by giving emphasis on economical low cost mass housing schemes especially in small towns and semi urban areas and also by laying concrete roads wherever feasible. 6.13 The Committee while noting the significant expansion of cement industry expresses concern over inadequate infrastructural facilities for the growth of the economy. India needs a strong infrastructural base to meet the demands of the bourgeoning population of our vast and diverse country. Since infrastructural development and demand for cement are complementary to each other, it is imperative to diversify, and make proper assessment of our requirements. Infrastructure sector should take the largest share in the cement demand. 6.14 The Committee takes a serious note of the fact that, in spite of constantly increasing capacity, the capacity utilization has been declining constantly. If we need to reach the optimum production level, capacity utilization should be maintained above 90%. The Committee desires that government should seriously address this issue. 6.15 The Committee also expresses its concern over the down slide trend of the production growth between 2005-06 and 2008-09, though it had achieved a record growth in 2009-10 at about 12%. The Committee, while agreeing that this is one of the major industries that has been growing at a record rate despite the economic downturn, desires that the down slide trend noticed earlier should not be allowed to recur again. 6.16 The Committee feels that research on non-limestone bearing raw material and binders, which can partially replace limestone, needs to be undertaken. National Council for Cement and Building Materials (NCCBM) expressed its helplessness in carrying out such research due to paucity of funds. The Committee recommends that the National Council for Cement and Building Materials should conduct research on finding alternatives of limestone and other construction material. Use of geopolymeric cements which require some chemical bonding instead of lime, should be encouraged. 6.17 The Committee strongly feels that the concerns expressed in regard to the fly-ash may be looked into. The Committee strongly recommends that the cement plants, which have captive power plants, may be allowed to use fully the fly-ash generated by their captive power plants. 6.18 Co-processing of industrial wastes in cement industry can conserve fossil fuel energy resource and has a potential to minimize the adverse impact of global warming, by reducing green house gases emission. The Committee, therefore, desires that co-processing of industrial wastes may be encouraged and incentives may be given to the plants using such technologies. 6.19 The Committee recommends that duties on captive power generation by cement plants add to the cost of production further escalating the prices and the State governments should consider reducing the duty on the captive power plants. The Committee also recommends that the State governments should not insist on the cement plants to pay for a minimum use of power from the grid wherever there are captive power plants. The Committee feels that the cement industries must explore alternate energy sources and the plants which adopt energy efficient technology, should be given incentives by the Government. 6.20 The Committee observes that Indian Cement Industry has vast untapped potential for cogeneration of power by waste heat recovery, of which, only 25% is being tapped. The Committee, therefore, recommends that Cement Industry should give emphasis on the need for optimum utilization of co-generation of power by

90 waste heat recovery. This will not only reduce cost of production of cement but also help in reducing the green house gas (CO2) emission. Incentives may also be considered for cement plants for co-generation of power from waste heat. 6.21 The Committee finds that though unhampered availability of good quality coal is essential for the cement industry, but the supply of coal through linkage from coal companies to the cement companies has decreased from 70% of total requirement in 2003-04 to less than 50% in 2008-09. This has forced the industry to source coal from other sources like open market, imports, use of pet coke etc. to supplement the requirement at huge cost. Other reason of this shortage is delay in signing of Fuel Supply Agreements (FSAs) between cement and coal companies. The Committee also expresses its dismay that the long term linkage committee meeting in the Ministry of Coal has not sanctioned any linkage for the last two years of the 11th Plan to new capacities. This can discourage the new investors and, in turn, can slow down the pace of infrastructure development. 6.22 The Committee recommends that the Government should take urgent steps to ensure enhanced and regular supply of coal to the cement industries. Fuel Supply Agreements (FSAs) should be signed without any further delay. In order to restore the confidence of the investors, it is imperative that 80% or more coal of total requirement should be provided through linkage. The Government may address all the issues relating to coal supply to the cement plants at the earliest. 6.23 The Committee while appreciating the steps taken by the Government for introducing taxation on cement on ad valorem basis, recommends that the Department should expedite introduction of abatement on excise duty. The Committee also recommends that import duty on inputs i.e. coal, pet coke and gypsum be brought at par with the import duty on the final product. State specific taxes should also be reconsidered. 6.24 The Committee observes that increasing cost of raw materials for cement is one of the reasons for increase in cement prices. Moreover, source of raw materials at selected regions of the country and making those available at other places have also caused wide variation in prices. In view of this, the Committee recommends that there should be fair tax/duty structure for the import of raw materials for cement industry and open market procurement thereof. The Government should also attach top priority to encourage application of nano-technology in the production of cement in view of the limited and finite nature of mineral resources available in the country. 6.25 The Committee recommends that in order to reduce freight charges, Ministry of Railways should address the issues like steep increase in the carrying capacity of wagons with no corresponding increase in the permissible free time allowed for loading/ unloading, erratic and inadequate supply of wagons, inadequate infrastructure facilities at terminals, frequent shifting of priorities of rakes, upward adjustments in the classification of cement, clinker and coal, etc. with urgency and seriousness. The Ministry should put in place a sound policy on wagon investment scheme without any delay, so that shortage of wagons can be addressed to cope with the future demands of the cement industry, especially at a time when the cement industry is poised for rapid expansion. The Committee also recommends that Railways should increase the share of Cement transportation as per its 2020 vision document. 6.26 The Committee is of the view that to reduce the loading and unloading time, there should be round the clock working in goods sheds. Besides, partial mechanization of loading and unloading process can be considered as viable option so that without retrenching labourers, their efficiency can be enhanced. The companies should try to complete the loading process at the shortest possible time so that demurrage charges do not add up to the cost. Similarly, Railways may consider reducing demurrage charges. 6.27 The Committee has already recommended in Para 2.25 for reducing the duties on captive power plants. The Committee further recommends that the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry may pursue the matter with State governments for reducing duties on captive power plants. Indian Trade Commissions abroad 6.28 The Committee is dismayed to note that one of the reasons for price rise of cement is profit motive of the cement companies. The calculation of fair price and the average retail price, gives a fair idea about the extent of profit earned by the companies each unit per bag. The higher amount of profit per bag will only add to the burden of the consumer i.e. the common man. This will also affect the infrastructure industry. The Committee, therefore, strongly recommends that the Government should establish a statutory regulatory

91 authority to regulate the prices of cement to curb the tendencies of market dominance, under-utilization of capacity and artificial scarcity. 6.29 The Committee recommends that Competition Commission of India which was constituted to check restrictive trade practices across the country, should be strengthened legally to enable it to take suo motu action in all the cases of unfair trade practices. Proper infrastructure may be developed for the Commission, so that it can obtain requisite information and can take suo motu action and exert its powers effectively. 6.30 The Committee strongly feels that already installed capacity for cement production should optimally be used to prevent artificial scarcity. The Committee, accordingly directs the Department of Industrial Policy and Promotion to take strong action against such non-performing cement industries. 6.31 The Competition Act, 2002 was passed by the Parliament to check unfair trade practices and to promote healthy competition. But, the Committee is at dismay to note that Sections 5 and 6 of Competition Act, 2002 pertaining to Combination and Regulation of Combination which are very effective to check mergers and amalgamations are yet to be notified. The Committee recommends that the Department should take immediate action to notify these Sections to check unfair trade practices. 6.32 The Committee strongly recommends that there should be a time limit for notifying all Sections of a particular Act, which has been already passed by Parliament, failing which it should be treated as violation of parliamentary privileges. In case the Government wants any further modifications in the Act already passed by Parliament, the Government should come back to the Parliament with an amendment Bill within that time limit. In the instant case, these Sections should be notified and come into effect immediately. 6.33 The Committee recommends that the Government may order an independent study on the existence of cartelization in the cement industry. The Competition Commission may also be asked to look into the matter. The Committee also recommends that the Government should take adequate penal measures so that no cartelisation takes place. 6.34 The Committee is constrained to learn that, while the European Union emission standards for large cement plants is 30 mg/Nm3 the Indian emission standards for existing large cement plants is 100 mg/Nm3 for cement plants, including grinding units, located in critically polluted or urban areas with a population of one lakh and above and 150 mg/Nm3 for plants other than those falling under above category. The Committee is horrified to learn that for mini cement plants the standard is 400 mg/Nm3. The Committee strongly recommends that emission standards should be uniform for all plants and there should not be such huge gap between Indian emission standards and international emission standards. The Committee also impresses on Department of Industrial Policy and Promotion to direct all plants to comply with emission standards by using state-of-art technology. The Committee strongly recommends that all cement manufacturers should comply with the corporate responsibility for environment protection. 6.35 The Committee feels that development and environment should go hand in hand and Government and corporates should work together to achieve this. Cement sector should show commitment for compliance of environmental regulation on sustainable basis. The Committee recommends that the cement industry should adopt energy efficient measures for reduction of CO2 emission. Shifting to more efficient processes like Vertical Roller Mill (VRM), high efficiency cooler etc., can also be useful. The industry should also adopt better operational control and scale of production for better environmental conservation. More use of alternative fuels, co-processing of industrial solid wastes and waste heat recovery for natural resource conservation and developing emission standards for oxides of Nitrogen also prove to be helpful in environment conservation. 6.36 The Committee also feels that the co-processing of wastes of cement plants that have successfully been put to trial run by the Ministry of Environment and Forests need to be commercially implemented. The Committee desires that both the Ministries of Commerce and Industry and Environment and Forests may take necessary steps in this direction. Necessary guidelines may also be framed for this purpose. The cement plants, particularly the modern and the new ones, should start co-processing of waste oil, solvents, refuse derived fuel as suggested by the Ministry of Environment and Forests. 6.37 The Committee desires that the Government should review all the cases of non-compliance of pollution norms, from time to time.

92 6.38 The Committee was given to understand that if some plant is on the sea coast of the country, it has to take permission from Coastal Regulation Zone Management Authority. The Committee is, however, constrained to note that by and large, our country has not followed the zoning system. If the zoning system is followed, problems of those types would be very few. The Committee desires that the guidelines may be prepared in this regard and implemented. 6.39 The Committee recommends the Department of Industrial Policy and Promotion may take up the matter with the Ministry of Environment and Forests, so that a Committee of experts may be constituted to work out the possibility of having zoning system in the country. 6.40 The Committee, while agreeing that there is a need to increase awareness among the stake-holders not to violate norms, also feels that there is a lack of awareness among the public about the norms fixed under various notifications/Rules/Acts etc. There is, therefore, a need to give due publicity to the norms through the media and in their website. The Committee recommends that the Ministry may give due attention to this aspect as well. The Committee recommends that in order to implement the various notifications of CPCB strictly, all these notifications should be displayed prominently on the web site and other effective measures should also be adopted for making this valuable information available to the public in a consolidated manner. The Committee also recommends that there should be complete co-ordination, collaboration and co-operation between the states, local bodies and Central Government. The Committee observes that norms/ guidelines of Central Pollution Control Board (CPCB) should be followed by all State governments without fail and the Department should pursue the matter with all State governments regarding pollution making cement industries from time to time. 6.41 The annual financial aid given by the Centre to the States should be linked to their contribution in pollution reduction. Similarly, the cement plants that employ eco-friendly technology may be given incentives and the pollution-causing plants may be heavily penalized. 6.42 The Committee notes that there is a clear advantage for cement concrete roads in respect of saving fuel consumption vis-à-vis bituminous roads. In view of the scarce fossil fuel sources, it would be desirable to have cement concrete roads wherever other factors are favourable. 6.43 The Committee is of the view that there is a vast potential for cement concrete roads in India, particularly highways. Taking into account the advantages of cement concrete roads, the Committee strongly recommends that the Government should consider constructing cement concrete roads wherever it is technically feasible. 6.44 The Committee also takes note of the fact that 40% of the roads in developed countries such as U.S.A., West Germany etc. are made of cement concrete whereas it is only 2% in India. The Committee, therefore, recommends that roads and highways should be made of cement concrete bringing at par with the international norms and standards. The goal should be to reach international level. 6.45 While formulating proposals for four-laning, expressway, new by-passes including forthcoming Build Operate Transfer (BOT) projects on Public Private Partnership basis, the Government should give long term construction-cum-maintenance contracts for constructing these roads. This will encourage the contractors to opt for cement concrete roads as the total life cycle cost of cement concrete roads, which includes the initial cost over the designed life and other operational cost, is approximately 25-30% less than that of bituminous pavement. 6.46 The Committee takes note of the new technology by which the use of water and the period can be reduced for curing the cement concrete. The Committee strongly recommends that this technology should be extensively used in all construction activities. 6.47 The money saved in maintenance by constructing cement concrete roads can be utilized for creating road connectivity in rural and other inaccessible areas. 6.48 The Committee observes that the provision of 50% cost sharing by State government in case of cement concrete roads and placing the responsibility of sharing maintenance cost to the respective state will only discourage the State governments from going for concrete roads under the PMGSY. Instead, the Government should make provision to encourage the states opting for concrete roads. 6.49 The Committee also observes that the condition of constructing 10% roads with concrete under Pradhan Mantri Gramin Sadak Yojana (PMGSY) is not sufficient. Cement concrete roads are labour intensive 93 and are ideally suited for rural roads. The Committee, therefore, strongly recommends that the percentage of cement roads under the scheme PMGSY should be increased. The Committee also recommends that wherever feasible, the rural roads should be constructed with cement concrete. 6.50 The Committee recommends that cement concrete roads should be preferred in the border areas wherever road transportation, air lifting and storage of cement are favourable. The Committee hopes that the Ministry and Border Roads Organisation (BRO) would soon take up technological upgradation so that more cement roads are laid. Priority should, therefore, be given for technological upgradation. 6.51 Adopting modern technologies is very essential for cement industry. The Committee takes a serious view of the fact that the manufacturers do not adopt them due to low returns. An industry should also be concerned about the environment, the humanity and the future of the society. Accepting the suggestion of NCCBM, the Committee recommends that carbon tax may be imposed. Guidelines may be prepared in this direction. 6.52 The Committee feels that crushers, being hazardous, should not be permitted near a populated area. Technology needs to be developed to lessen the dust generation and for its collection. The Committee desires that NCCBM may work in this direction. 6.53 Committee appreciates the progress of the study on increasing quantity of fly-ash in cement being carried out by NCCBM and hopes that the study would yield the desired results. The Committee, therefore, desires that NCCBM may continue the study and transfer the technology, so developed, to the industry. 6.54 The Committee feels that NCCBM is a major research institute engaged in significant activities relating to development of cement industry. The research work, it is carrying out or proposes to carry out, is very essential for the cement industry to sustain in the long run. Lack of funds should not become an impediment for NCCBM to take up these activities. NCCBM needs adequate funds and infrastructure to carry out research on cement. The Committee, therefore, recommends that necessary funds may be provided to NCCBM for carrying out research in cement sector. 6.55 The Committee is of the view that the organisations like Indian Roads Congress (IRC) should not confine only to conduct research, but they should also advise the Government on important issues, like road conditions and make feasibility study with regard to type of road required, supporting the Government with the results of the studies conducted by IRC. The Committee also evinced interest in white topping and feels that much more is still desired to be done. The IRC and the Central Road Research Institute (CRRI) should conduct research and trials on this and come out with concrete results. 6.56 The Committee also desires that IRC guidelines for constructing roads should be made mandatory even for states and concessionaires in Public Private Partnership projects. For that IRC should be given a bigger role to play. 6.57 On the one hand, natural resources like coal and limestone are limited and soon these will be finished and on the other, the need for cement is ever increasing. To meet this gap, the future of cement industry lies only in nano-technology. It is heartening to learn that with the use of nano-technology, the use of cement can be reduced by 30-50 per cent. If achieved, this will be a positive development. The Committee, while appreciating the present research being done on nano-technology in construction, strongly recommends that NCCBM may conduct more research on this and transfer the technology so developed to the industry. Top engineering institutions such as IITs may also be involved in the research on nano-technology. Sufficient funds may be provided to NCCBM and other research institutes for research on nano-technology. 6.58 The Committee recommends that the Cement Wage Board should revise the wages of, cement workers, immediately and while revising it should take into consideration the wages fixed by Cement Corporation of India (CCI) for its workers and also wages prevailing in other sectors. The Cement plants should also improve the working conditions in their plants by reducing air pollution by strictly following the Ambient Air Quality Standards notified by the Ministry of Environment and Forests. The Committee also recommends that before giving permission for land acquisition for setting up cement plants, the Government should ensure that the interests of the local inhabitants are not compromised and the issue of the unemployed and displaced labour be addressed in right earnest. The Committee further recommends that the cement industry should take the social responsibility of providing all essential facilities to the workers such as education, health, drinking-water, sanitation and insurance cover, etc.

94 (b) 96th Report on Action Taken by Government on the Observations/Recommendations of the Committee contained in its Ninety Third Report on Demands for Grants (2010-11) of the Department of Commerce, Ministry of Commerce and Industry

6.59 The Committee desires to be informed of the final decisions taken in the meetings of the core group. 6.60 The Committee notes the reply and desires to be informed of the action taken by the Department of Expenditure. 6.61 The Committee in its recommendation made in the 93rd Report had categorically stated that performance of the Commercial Wing of the Indian Missions abroad should be assessed against the tangible targets. However, the Department, in the present reply, has remained silent on this aspect as to what kind of tangible targets were fixed for the Missions. On the other hand, it is mentioned that the Missions are evaluated on the basis of their own internal reports sent by them to the Department. The Committee further notes that the Department did not inform anything about the evaluation of the functioning of the missions and also regarding achievement of targets by the missions in their monthly report. However, the expenditure incurred by them is being intimated to the Department on monthly basis. Therefore, the Committee strongly recommends that tangible targets be fixed for all the Missions and their reports should be evaluated by the Department of Commerce at a regular interval, preferably on quarterly basis. 6.62 The Committee recommends that the Department of Commerce should ensure that all the recommendations of the Core Group of Secretaries constituted to deal with the issue relating to infrastructure may be implemented without fail. There should be a monitoring mechanism to ensure implementation of the recommendations of various committees. 6.63 The Committee would like to be apprised of the outcome of ‘The India Show’ events. The Committee hopes that projects started under Market Access Initiatives would generate stronger markets for Indian products abroad. 6.64 The Committee would like to be apprised of the details of the status of cases cleared under the Transport Assistance Scheme during the financial year 2010-11. 6.65 The Committee recommends that the Department of Food and Public Distribution may take necessary action for exemption of the various varieties of premium quality non-basmati rice from export ban. The Department of Commerce may pursue the matter. 6.66 The Committee desires that BIS should take an early decision to implement India GAP. 6.67 The Committee appreciates that establishment of Good Laboratory Practices (GLP) is under process. The Government should take early decision in the matter. 6.68 The Committee feels that the rate of replantation is still very slow. Measures are, therefore, required to be taken at a higher pace to achieve the target. The implementation of SPTF Scheme may be reviewed. 6.69 The Committee is happy to note that the Department of Commerce has made concerted efforts to reopen 25 closed tea gardens. The Committee recommends that the Government should make all out efforts to open the remaining ten closed tea gardens. 6.70 The Committee would like to be informed of the comments of Ministry of Finance and the final decision taken. 6.71 The Committee would like to be apprised of the latest position with regard to establishment of spice parks in Tamil Nadu, Guntur in Andhra Pradesh, Rajasthan and Guna in Madhya Pradesh. 6.72 The Committee fails to understand as to why the Plan allocation of the Budget could not be made in a staggered manner and such huge amount was left to be allocated in the last year of the plan period. In view of this, the Committee finds the reply unsatisfactory and desires to know the response of Planning Commission. 6.73 The Committee recommends that the Department should follow up with the concerned Ministry so as to expedite the faster implementation of ‘Single Window clearance’ for promotion of exports. 6.74 The Committee is of the considered view that where other Government Ministry/agencies are involved, the Department should fix up a time frame so as to sort out the related issues well within it. The Committee further opines that any delay in sorting out such issues is going to increase the problems. The 95 Committee, therefore, recommends that the Department should always act in a proactive manner particularly when the matter involves other Government Ministries/agencies etc. and resolve the issues expeditiously. 6.75 The Committee recommends that in the interest of the small and medium exporters, the Department should pursue the matter expeditiously with the Ministry of Finance. 6.76 The Committee notes with concern the problems ailing the coffee industry, and feels that a detailed study needs to be done. The Committee, therefore, would like to take up detailed study later. For now, the Committee recommends that the Department should review the replantation scheme so as to remove the shortcomings in the Scheme and re-design the same whereby, there is a suitable provision for giving incentives to small and big coffee growers with a view to enhance the coffee production in the country. 6.77 Though Government had agreed in principle to set up a Cashew Board, nothing serious has happened. The Committee in its recommendation in the 77th and 85th Reports on Demands for Grants pertaining to the years 2007-08 and 2008-09, recommended for setting up of the Cashew Board. The Committee, while reiterating its recommendation made earlier, further recommends that the Government should coordinate with the concerned Ministries / agencies and take urgent steps towards setting up the Cashew Board without further delay. 6.78 The Committee is not happy with the reply of the Government. The Committee desires that an early decision may be taken for modernization and shifting of trade pavilion from Pragati Maidan. 6.79 The Committee recommends that the Department should impress upon the concerned ministries and pursue the matter from time to time so as to obtain the requisite comments. ATN may be submitted at the earliest. 6.80 The Committee recommends that the Department of Commerce may pursue the matter with Ministry of Finance for taking an early decision in the matter. The Committee also reiterates that the time attached with the refund mechanism be relooked. 6.81 The Committee desires that an early decision may be taken on the ownership issue once the survey report is finalised. 6.82 The Committee expresses its concern to note that the Department is yet to take a final decision on setting up of Small Growers Directorate, which is the urgent need of the hour. The Committee recommends that the SIU study be got completed immediately and the Department of Commerce may take further necessary steps. 6.83 The Committee takes a serious view of the procrastinating attitude of the Government. The Committee recommends that the Department of Commerce should take immediate steps to convene the meeting of the Chief Ministers on the matter of sharing of the subsidy between Centre and State Governments and resolve the same at the earliest.

(c) 97th Report on Action Taken by Government on the Observations/Recommendations of the Committee contained in its Ninety Fourth Report on Demands for Grants (2010-11) of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

6.84 The Committee desires to be informed of the action taken on the recommendation for increasing allocation at RE stage, 2010-11. 6.85 The Committee desires to be informed about the findings of the M/S Deloitte Touche Tohmatsu India (P) Ltd; the Comptroller & Auditor General in their Report on the performance audit; and the final decision taken by the Department in this regard. 6.86 The Committee recommends that the Department should expedite filling up the posts including the Examiners of Patents and Designs for Modernisation and Strengthening of Intellectual Property Office. The Committee also desires that the construction work at New Delhi and Ahmedabad may be completed as per the targets fixed. 6.87 The Committee desires that all the activities may be completed at the earliest.

96 6.88 The Committee however, notes that the Department has remained silent about controlling the prices of life saving drugs. Accordingly, the Committee feels that appropriate action will be taken in this regard in future. 6.89 The Committee hopes that the three branches would be operational by now. The Committee also recommends that the Department should monitor the working of branches of Footwear Design and Development Institute (FDDI) at Chennai, Kolkata and Rohtak and envisage periodical upgradation of these institutes to cater to the changing needs and demands of the leather industry. 6.90 The Committee desires that the proposals approved may take off at the earliest. There should not be any delay in setting up of the approved Common Effluent Treatment Plants (CETPs). 6.91 The Committee recommends that the Department should impress upon the State Governments to send proposals at the earliest so that the scheme ‘Development of Leather Parks’ can be implemented during the remaining period of the Eleventh Five Year Plan. 6.92 The Committee desires that the physical and financial targets should be adhered to. 6.93 The Committee would like to know the details of the work on expansion and upgradation of CMTIS. 6.94 The Committee likes to be informed about the progress made towards setting up of more NIDs. 6.95 The Committee recommends that the office of the Deputy Salt Commissioner, Ahmedabad be expanded and upgraded to accommodate the Salt Commissioner, so that he can address all the issues related to salt industry in Gujarat, with more dedication. 6.96 The Committee desires that the process of revising the base year and expanding the commodity basket be completed at the earliest. 6.97 The Committee would like to be informed about the decision taken on the Draft Policy on National Manufacturing and Investment Zones (NMIZ). 6.98 The Committee desires to be informed of the details of the awareness programme conducted during the year 2010-11. 6.99 The Committee welcomes the steps taken by the Department for supporting the initiatives of the State Government of Andhra Pradesh. However, the Committee conveys its concern that the Department remained silent on the issue pertaining to conducting a detailed study on the ailing and declining leather industry and to find out strategies to save the leather industry hubs at other places in the country. 6.100 The Committee desires to know about the terms of Reference of National Monitoring Unit (NMU). The Committee recommends that the NMU may be appointed at the earliest and the appointment of Project Management Consultants (PMC) for sub-scheme environmental initiatives should be expedited. 6.101 The Tariff Commission is taking unduly long time to finalise its report. There should not be any further delay in this regard. The Tariff Commission may present its report immediately. 6.102 The Committee desires to be informed of the latest position regarding implementation of Technology Upgradation Scheme for paper industry. 6.103 The Committee is not satisfied with the reply given by the Department as still they have not taken any final decision regarding strengthening of Tariff Commission. The Committee would like to know since when the matter is pending with the Cabinet Secretariat; whether the Department has taken up the matter with them for expediting decisions and by when a final decision will be taken. 6.104 The Committee may be informed about the final decision taken with regard to NMAY Scheme.

(d) 98th Report of the Committee on Export of Foodgrains-Premium Non-Basmati Rice and Wheat

6.105 The Committee recommends that the Ministry of Commerce and Industry should impress on the Ministry of Agriculture to formulate a proper National Agriculture Production Policy (NAPP) based on country’s requirements, keeping in mind all the issues mentioned above and the paramount importance of food security for our population.

97 6.106 The Committee recommends that the Ministry of Commerce and Industry should take up the matter with the Ministry of Agriculture so that they, in close coordination with various State Governments, accord priority to Research & Development to guide and advise the farmers on proper techniques, crops and technology to be adopted. Keeping in mind global quality and standards, and the export potential of several agricultural products, the Ministry of Commerce should also encourage scientists of R&D Establishments to evolve such varieties of seeds that give better but quality output with less consumption of water, utilising better irrigation systems such as drip, sprinkler or underground system of irrigation which are easily available in the country and do not involve wastage of water. Besides, the Committee also recommends that the Government should evolve a mechanism to encourage the farming community to develop rain harvesting systems for optimum utilization of water. 6.107 Appreciating the initiatives taken by the State Governments of Haryana and Punjab, the Committee recommends farmers’ interest and benefits should always be taken care of and in no way should they be overlooked. Hence the state governments should support the farmers to get the best return for their produce as reward for their hard work. This must be balanced with concerns for the environment also. 6.108 The Committee recommends that it is the responsibility of the Ministry of Agriculture to impress upon the scientists to bring out such heat tolerant varieties of foodgrains particularly the non-basmati rice and fine quality wheat which are quality and yield-oriented and infestation resistant too. The Committee further recommends that since the organic food grains have better market and fetch more price, the Department Of Commerce should generate awareness and render support in terms of assisting with certification, technical knowhow etc., in this regard. 6.109 The Committee expresses its displeasure over the Government's policy to accumulate foodgrains over and above the buffer norms and recommends that the Government should take immediate decision to export the surplus foodgrains so that the same is not wasted due to poor storage capacity. 6.110 The Committee is extremely anguished to note that foodgrains i.e., rice and wheat of more than three years - 2009, 2010 and 2011 were still lying in the godowns and have become unfit for consumption. Instead of wasting the grain, the Committee recommends that such grain should be distributed at nominal price or even free of cost to needy BPL families. The Government may also consider a proposal to issue food coupons, in addition to PDS. The Committee also recommends that grains meant for six months’ consumption may be released at one go under PDS to reduce the burden of FCI with regard to storage of foodgrains. In a country like India, where a vast majority of people still struggle to make both ends meet, such a colossal waste of precious foodgrains must be viewed very seriously. The Government must also fix responsibility on those entrusted with storage of foodgrain and ensure that the cost of wasted grain is recovered from those responsible for the loss. 6.111 The Committee recommends that Private entrepreneurship must be encouraged and incentivized for construction of godowns/silos. The Central and State governments also must enhance budgetary allocations for construction, upgradation and maintenance of warehouses and godowns. The Guarantee Scheme for construction of godowns operated by the FCI also need to be revised to ensure that private entrepreneurs get a satisfactory return on their investment, without which they will remain hesitant to invest. The condition of the godowns leaves much to be desired. Further the schemes operated to incentivize private entrepreneurship; including rent fixed need to be revised to ensure that there is some profit motive for private investors. The Committee also feels that construction of warehouses should be given industry status to give a fillip to private participation. The Government may consider permitting large farmers to retain their crop for storage and to release it to the Common Pool as and when required. For this purpose, the Government may consider passing on the cost of warehousing to the farmer to incentivise them to store it at their own end. The Committee also recommends that the Plan Outlay for construction of warehouses should be substantially increased, if not in the current Plan period, at least for the 12th Five Year Plan. 6.112 The Committee recommends that the Government should coordinate with the Ministry of Railways to prioritise the movement of foodgrains. With regard to availability of containers, the Committee recommends that opportunities be extended to the potential and capable private entrepreneurs for manufacturing containers within the country through their investments. Government should provide incentives to them and encourage them in this field in the interest of the nation. Until a concrete solution to the problem is arrived at, Government may consider providing transport subsidy to the concerned agencies. The Committee recommends that transportation of commodities, particularly food grains, must be handled on priority and the issues of poor quality of roads, containers and other facilities, should be immediately addressed.

98 6.113 The Committee recommends that the Standing Committee of Secretaries and Empowered Group of Ministers should expedite the decision on the possibility of export of wheat and rice in view of the huge availability of stocks over and above the buffer stocks and strategic reserve requirement and the increasing pressure on procuring agencies on account of storage. 6.114 The Committee feels that the Government should have taken the decision to export surplus wheat well in advance. The Committee, therefore, recommends that taking into account the urgency of the matter the Department of Commerce should act proactively in taking decision to export the surplus foodgrains. The Department of Commerce in coordination with the Department of Agriculture and Cooperation, the Department of Food and Public Distribution should decide well in advance as to how much surplus foodgrains may be exported in order to get better prices for the foodgrains to be exported. 6.115 The Committee wholeheartedly empathizes with the concern for food security in our country and is appreciative of the fact that the Government intends to move the legislation on food security shortly. The Committee believes that every citizen of the country has a right to food and proper nutrition and it is the responsibility of government to ensure this right. Nevertheless, the anxiety to store foodgrain must not lead us to lose a precious national asset to waste and indecision. It is a criminal wastage to let foodgrains rot in poorly maintained godowns and warehouses without reaching hungry plates. The Committee, therefore, strongly recommends that the Government should make a proper assessment of the actual requirement of foodgrains for domestic consumption in the country and give a realistic picture of the scenario, post implementation of NFSA. The Government should also pave the way for the export of selected varieties of premium non-basmati rice, based on non-varietal considerations and taking into account Minimum Export Price as a criterion; and fine quality wheat by lifting restrictions on their export. This will benefit not only the country but also the exporters and growers. Opening of export avenues for rice and wheat will mark the presence of Indian varieties on the globe, which is necessary if India wants to establish its position in the world market. Some quantity of all these varieties must be exported every year so that we do not lose markets due to absence. 6.116 The Committee recommends that the Government should evolve a policy that facilitates our exporters in getting a fair share of the world market. Such policy should also address other related issues like removal/merger of various types of Central and State Government taxes; special exemption under RKVY Scheme, extension of various schemes like DEPB, benefits under VKGUY Scheme and interest subvention on rupee export of rice etc. For this, concerted efforts on the part of various Ministries/Departments of Government of India as well as the concerned State Governments and active cooperation from the exporters community is the need of the hour. 6.117 The Committee feels that there are many States in the country that produce various premium varieties of rice. For export of rice, like any other commodity, foreign buyers have their own parameters in terms of hygiene, quality, use of insecticides and pesticides, etc. Accordingly, the Committee recommends that the Government should come out with a planned policy whereby, all types of premium rice varieties should be considered for testing and research and those varieties that fulfill international norms may be encouraged for export. 6.118 The Committee recommends that the Government should enter into a dialogue with neighbouring countries at diplomatic level and facilitate export of various products and commodities including rice and wheat through the land borders which would reduce the extra burden of exporters relating to transportation costs and taxes significantly. Such diplomatic dialogues may be held at regular intervals in the interest of the exporters and the country as a whole. 6.119 The Committee recommends that export of food grains on clean credit basis (DA) has caused hardship and loss to exporters and farmers and, therefore, its continuation or otherwise needs to be reviewed. 6.120 The Committee strongly recommends that one agency be identified as a single window to deal with all matters pertaining to export of foodgrains. The Committee suggests that as the APEDA is already identified as a nodal body for promoting agricultural exports, it should also take a lead in food grains export and be given more powers to handle all export related matters on a single window clearance basis. The Committee recommends that a focused and comprehensive programme be chalked out by the Government whereby all stakeholders viz., farmers/growers, exporters/representatives of various trade bodies; rice producing/processing organisations; R&D Scientists and Centre and State Government representatives could participate and benefit. This would definitely help the country in establishing a lasting identity on the world map of exports.

99 6.121 In the short-term, for an immediate solution to the foodgrain glut in the country, the Committee strongly recommends that ban on the export of wheat and premium quality non-Basmati rice be removed at the earliest, keeping in view the domestic requirement.

(e) 99th Report of the Committee on Export Promotion of Agricultural and Processed Food Products

6.122 The Committee is of the considered view that the Government should seize the opportunities ahead in horticulture sector and come up with right policies for its comprehensive development. Though National Horticulture Mission has proved beneficial, the Committee feels that proper policy initiatives in the form of enhanced engagement with protected cultivation will help realize our potential to the maximum. The Committee notes that the cropping techniques under protected cultivation control the micro-climatic surrounding of the plant body during its growth period which helps in bringing in economy in cost of production while increasing productivity. Though high capital investment is the biggest constraint in full growth of protected cultivation, the Committee hopes that the Government will take necessary steps like extending tax concessions and related relief for investments in greenhouses, poly-houses, shade-houses, etc. for protected cultivation in cluster approach. 6.123 The Committee feels that private sector should be encouraged for carrying out research for better techniques of protected cultivation and a mechanism for an effective single window clearance for protected cultivation for organized clusters development should be devised. The increased emphasis on protected cultivation should be accompanied with right policy mix for development of supporting infrastructure with common amenities. The Committee is also of the opinion that the Ministry of Commerce and Industry and the Ministry of Agriculture should together identify the crops which have a demand in all the three markets- domestic, processed and export, and also explore the viability to accord the status of ‘deemed agricultural activity’ to the tertiary industry of service providers and pass the same benefit of exemption as for agricultural income to the industry. 6.124 The Committee appreciates the efforts of the Department of Agriculture and it acknowledges the increase in production over the years but at the same time it demands caution over unnecessary jubilation over the increase in production. The Committee feels that we still have a long way to go to attain higher productivity of our crops, fruits and vegetables which is comparably lower than world standards. Even, our neighboring countries like Thailand, Indonesia, Malaysia and others are doing better in terms of yield per hectare of area. 6.125 The Committee found that barring few States like Maharashtra, Gujarat, Karnataka, Andhra Pradesh, most of the States have yet to take more concerted efforts to seize the opportunity. They need to identify specific projects and initiatives that would help the farmers of their States take advantage of the agro export potential of their States. The Committee sincerely feels that the various schemes run by the Ministry of Commerce, APEDA, Ministry of Agriculture, National Horticulture Board and Ministry of Food Processing industries can be availed of by these States to improve the production, storage, sorting and grading, processing units, post harvest infrastructure as well as quality management so as to ensure better price for the farmers for their produce. 6.126 The Committee is immensely perturbed to note the colossal loss caused to the country on account of wastage of agricultural produce. The Committee is of the view that the only way out of this abyss is that desired investments are made available for creation of post harvest infrastructure with steady electricity supply in rural areas and last-mile connectivity. The Committee strongly recommends the Planning Commission and the concerned Ministries to devise efficacious policy/schemes complemented with adequate funds for creation of post harvest infrastructure as well as general infrastructure during the XIIth Plan. The Committee is of the firm view that action to stem these losses must be taken immediately. The concerned Ministries should involve State Governments and the private sector in this endeavour and incentivise investments for proper handling and storage. If the domestic private sector, particularly small and medium enterprises can be incentivised to step into this, there would be no requirement of Foreign Direct Investment in fruits and vegetable retail. The concerned Ministries should submit a concrete action plan within three months on what steps it intends to take in this direction. The Committee desires that necessary flexibility may be provided for in the schemes meant for infrastructure development so as to allow the Ministries/ Departments adopt tailor-made approach to address the specific requirement. 6.127 The Committee is perturbed over the miniscule processing capacity in the country. It is sad to see that though we are second in food production globally yet we are able to process only two per cent of our 100 production. The Committee firmly believes that such a low capacity is a big disadvantage for our country and unless necessary steps are urgently taken to correct the situation, prospects of India playing a dominant role in agro-exports will remain a dream. The reasons identified for this dismal position have been lack of systematic investment and non-availability of desired varieties of agricultural products for profitable and optimal food processing. There is also absence of proper backward and forward linkages for food processing industries. 6.128 The Committee is of the view that such godowns are very rudimentary and these cannot hold perishables for any significant time. The Committee feels that the Government should come out of symbolism and takes initiatives which are practical and scientific and is rooted in ground realities with a vision for future. The Committee recommends the Ministry of Agriculture to revisit its scheme of Grameen Bhandaran Yojana and prune it so that basic scientific storage godowns with pre-cooling facilities can be created for a cluster of every twenty village throughout the country. The Committee also feels that adequacy of subsidy component may also be looked into so as to ensure that such godowns become a viable proposition and could really take- off in right earnest. The Ministry may also examine the feasibility of opening the Scheme to all so that private investments in rural godowns may be encouraged and also more incentives should be extended to farmers’ cooperatives for building rural godowns. 6.129 The Committee is of the opinion that the State Governments should also come forward for creation of scientific storage capacity in rural areas out of the funds available under ASIDE Scheme of Department of Commerce. 6.130 The Committee once again emphasizes on the need for adequate investments in creation of scientific storage capacity in the country and also addresses the problem of inadequacy of cold chains or cold storages. 6.131 The Committee is of the opinion that various central schemes for construction of cold chains should be dovetailed in one and a nodal body may be appointed for the development of integrated cold chains in the country through various models. The different Boards/Export Promotion Councils may sensitize the designated nodal body about their requirements which in turn shall take necessary action. If any request/proposal of these bodies is to be turned down, then, it must be an informed decision and the same should be posted on the website of the designated nodal body. The Committee strongly recommends that the Planning Commission work out a workable scheme of cold chain development with adequate financial outlays. 6.132 As on 31.12.2009, out of total installed cold storage capacity, fruits and vegetables had a share of 0.39 per cent, meat and fish had 0.77 per cent and milk and products had a share of 0.28 per cent storage. The Committee is perturbed with this sorry state of affairs for cold storage facility for perishable commodities. It strongly recommends to all concerned to make concerted efforts to improve the state of things. 6.133 The Committee again finds the lack of requisite funds a big constraint in the development of necessary infrastructure and recommends to the Planning Commission to augment the financial resources of the Ministry of Food Processing Industries. The Committee is also of the view that in cases where a particular scheme has become successful and continues to be purposeful, the Planning Commission and the Ministry of Finance should allow flexibility to the Ministry executing the Scheme to divert funds from other schemes/programmes which are not faring equally well and remained unutilized for long period. However, such flexibility can be exercised only after giving proper justification for it. Such an approach will enable the Ministry/Department to handle instant fund crunch and to carry out the proposed mandate effectively keeping in view the public interest. 6.134 The Committee welcomes the concept of Mega Food Parks which aims at providing the food processing sector necessary backward linkages with farmers and also forward linkage with markets. These parks while endowing the farmers with necessary bargaining power also provides a better base for organizations like APEDA to pick up clientele and boost agro-exports. The Committee notes that 10 Mega Food Parks have been sanctioned and five more are under process of due approval. The Committee desires that more such Food Parks may be established in the country and necessary finances may be arranged by the Ministry of Food Processing Industries and Planning Commission for the same. The Committee strongly recommends that direct purchase from farmers must be made binding in these Mega Food Parks and the role of middle-men is completely eliminated. 6.135 The Committee notes that the National Horticulture Board under its Scheme of Assistance for common facilities in Horticulture Parks/Agri Export Zones etc, extends one-time financial assistance to the promoter agency up to 50% of the eligible project cost with ceiling of subsidy of Rs. 4.00 crore per Horticulture Park for

101 setting up of common Facilities Centre (CFC) such as mobile pre-coolers, pack house, cold chain infrastructure, storage godowns, quality control labs, logistics, primary processing facilities, water supply, effluent treatment plant, training/committee room etc. The Committee desires that Mega Food Parks may also be recognized and made eligible for getting assistance from NHB under the Scheme. 6.136 The Committee appreciates the increase in allocation for food processing infrastructure; still the Government has a long way to go so as to improve the situation. The Committee is of the considered opinion that there is an urgent need for quantum jump in funds allocation for the Ministry of Food Processing Industries. 6.137 The Committee firmly believes that such delay defeats the very purpose of the Schemes for which the budget have been provided. This delay is a reflection of the lackadaisical attitude of the government towards creation of necessary infrastructure for prevention of agricultural wastage and providing avenues for value addition of agricultural produce. The Committee takes strong exception over this delay and recommends that the Planning Commission and Finance Ministry fix a reasonable time-line for approval, sanction and release of funds for execution of any scheme/programme of the Departments/Ministries. The Committee is displeased at the delays in firming up the proposals at the level of Planning Commission and the Ministry of Finance which constrained the Ministry of Food Processing Industries to spend only Rs. 1132 crore out of Rs. 4031 crore during last four years of the XIth Plan which is ending in next few months in 2012. 6.138 The Committee sincerely feels the need to sensitize banks to extend loans to the food processing industry under priority sector lending. Financial support through low cost interest rates, high leverage and centralized policy will help in export boost. The Committee is also convinced that there is need to ensure timely availability of Dollar credit, preferably at RBI declared rates of LIBOR, at all times especially to seasonal industries such as Cashew Processing etc., wherein raw material is procured as and when available only and in locations that are remote. 6.139 The Committee is of the view that there is a need to revisit the policy guiding agro-processing sector in the country. Government needs to draft policies in terms of availability of adequate finance, development of efficacious local market with right policies and inputs, long term consistent policy taking Centre's and State's concerns/reservations into mind and clear division of products on long term basis; one which can be exported and those which are needed for domestic consumption. There should be clear spelling out of incentives for production that is essentially for domestic consumption and the incentives for production for export purposes. This division will help in removing ad-hoc approach and help in better preparation for exports. A clear and consistent policy approach will enable investment by entrepreneurs in this sector. 6.140 The Committee strongly feels that mandis must be reformed and evolved in a manner where the processors and the farmers can meet directly, without the interference of middle-men. 6.141 The Committee is of the view that terminal markets are very important both for providing organized market linkage to farmers as well as driving reforms in the agricultural marketing sector resulting in accelerated development of marketing and post harvest infrastructure. The Committee understands that the Governments assistance is primarily in the form of viability gap funding of only 25 percent for establishment of terminal markets. The Committee feels that this viability gap funding may be increased for establishing terminal markets in remote and backward areas of the country. The Committee recommends that the Department of Agriculture should explore the ways to increase the quantum of financing the viability gap for establishing terminal markets. 6.142 The Committee is of the considered view that APMC must be adopted by all States/UTs in its true spirit. The Committee feels that a dual approach may be adopted in marketing reforms-first, encourage setting up of mandis and strengthening them in lagging states, and second, privatisation of mandis may be encouraged in mature states. This exchange should be through farmer's cooperatives and farm gate purchase be allowed, specifically for certain sensitive items, and factory-gate purchase be allowed as well. 6.143 The Committee recommends the Government to push the model APMC Act vigorously so that contract farming for exports along with other agricultural marketing reforms like terminal markets, etc. may be adopted across the country. The Committee is of the considered view that incentives may be given for promotion of those models of contract farming which provide for linkages with formal group of farmers/cooperatives for carrying out contract farming. The Committee recommends that while promoting contract farming model, necessary caution should be taken to protect farmers from the hazards of commodity speculation.

102 6.144 The Committee feels that quality control should become an integral component of all processing units and all processing units availing government’s assistance must provide for installation of quality standards machines. The Committee notes that Department of Agriculture has established three laboratories which can test the presence of chemicals and pesticides in the food product. The Committee is of the view that APEDA can also utilize these laboratories for the purpose of phyto-sanitary certification. The Committee recommends that the Department of Commerce commission feasibility studies to find effective means to set up food processing industries of international standards for high value agricultural crops. 6.145 The Committee also desires that the Food Safety and Standards Act, 2006 should be strictly enforced. Awareness programmes may be organized with the help of industry throughout the country. For ripening of fruits like banana, mangoes, etc, the Government should provide assistance for Ripening Chambers and come down heavily on illegal use of Carbide and other hazardous chemicals to ripen fruits. 6.146 The Committee finds that the country has an inherent advantage of being one of the lowest consumers of chemical fertilizer in the world. The Committee is of the considered opinion that we should take advantage of this situation and seize the opportunity to increase our base of organic farming which has huge exports potential apart from ensuring premium price to our farmers for their products in both domestic and foreign markets. 6.147 The Committee feels that agricultural research needs renewed vigor and a Vision Document may be prepared by the public research institutes every year detailing its short term, medium term and long term goals and tune in their research as per their action plan. Every research should be rewarded by the Government and a research environment devoid of fear of failure needs to be created. It is also recommended that a mechanism may be developed so as to ensure a free flow of ideas amongst all stakeholders in public as well as private sector for promotion of research. 6.148 The Committee strongly recommends that XIIth Plan outlay for Research and Development activities should be augmented so that selected universities, research organizations who are into critical areas of research in the field of agricultural and processed food products will be able to deliver results of international standard. 6.149 The Committee is of the considered view that today in response to the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), there is a growing trend towards privatization of plant genetic resources and plant breeding through the use of Intellectual Property Rights (IPR). This protectionist environment has imposed restraint on the open access to plant genetic resources. The Committee recommends the Government to devise mechanisms to safeguard access to plant genetic resources for our farmers at both global and local levels. The Committee underscores the urgent need to strengthen the public agricultural research system which sufficiently oriented towards providing solution that are relevant, acceptable and attractive to the farmers. Also, they is a urgent need to link farmers' traditional knowledge with science-based innovation under an efficacious institutional frame-work. 6.150 The Committee is of considered view that the panacea to this problem lies in the strengthening of cooperatives in the country since these are the ideal mechanism for collaboration of efforts and resources. 6.151 The Committee recommends that the Government promote cooperatives of farmers on the lines of GCMMF wherein the farmers’ production through cooperatives is supported with desired competence and professionalism in production, processing and marketing of their product. The Committee is of the view that such an arrangement will help the farmers get remunerative prices for their production and will motivate them to produce more so that they can also export if the external markets has favorable price to offer. 6.152 The Committee desires that necessary amendments in legislation may be carried out to promote effective formation of cooperatives. Start-up financial assistance may be extended for formation of professionally managed farmers’ cooperatives. Also, an interest subvention of 2% may be granted to agri exports carried out by farmers’ cooperatives or the exporters’ sourcing their material from the farmers’ cooperatives. 6.153 The Committee is also of the view that cooperatives of farmers are the best guarantee for continuous supply to market/processing units of agricultural produce of desired quality standards. At the same time, it bestows the farmer with greater bargaining power for their produce and also provides greater opportunities to shift towards higher value and income generating farming.

103 6.154 The Committee is of the view that taxes, octroi, etc. should be rationalized for agriculture & food processing industry in rural areas, which in turn will give spurt to investments in backend infrastructure and processing industries thereby resulting in creation of islands of excellence throughout the rural landscape. 6.155 The Committee is of the considered opinion that an authority/agency may be established which will be the single window for framing policy and creation of infrastructure necessary for effective backward linkage within a fixed time-frame. The Committee also strongly feels that the State Governments should extend necessary incentives to private players to invest in backward linkages. The present success of private participation in energy sector in the country which began in the State of Himachal Pradesh is a distinct pointer to the fact that proper incentives is sufficient to fuel the imagination of indigenous private enterprise. The Committee is aware that availability of huge domestic market along with immense export potential of agricultural and processed food products is one big reason that the country can see explosion of infrastructure necessary for backward linkage. The only drive required is in the shape of right policy-mix that encourages creation of investor-friendly environment in the country. This approach will help the Government to ride the economic growth path without looking much outside for FDI in sectors like retail business and will also put Indian agriculture on sustained growth trajectory. The Committee is, nevertheless, convinced that the entire infrastructure necessary for backward linkage is largely dependent upon the forward linkage. This forward linkage can only be provided if an assured, organized, free and modern market is available to farmers as well as processors and other stakeholders to buy and sell their agricultural products. The Committee desires that the State Government take necessary steps to reform their agricultural markets so that farm gate purchase may become possible. The incentives in terms of taxes and tariffs and agri-market reforms will enable a situation where many private players would invest in agriculture, thereby, ensuring that best agricultural practices becomes a norm in the farms and farmers get remunerative price for the produce. This will also benefit the consumers in the form of regular supply of food items at reasonable price. The Committee recommends that adequate funds may be flowed in creating the right environment. The Committee firmly believes in the enterprising skills of domestic private players who are second to none in carrying out their business as per the best international practices when they are provided right opportunities. The Committee hopes that the Government will act on the suggestions/recommendations of the Committee in right earnest. 6.156 The Committee is of the considered view that a single pan-India policy at the central government level on food processing applicable at to all states would give the desired thrust to the development of food processing industry. 6.157 The Committee understands that ban on export of certain agricultural product might be necessary to ensure stability in the market. But, these bans should be in exigent conditions. The decision to stop the export of any commodity should not be a knee-jerk response but a well considered decision. The Committee feels that a mechanism may be put in place to carry out market study-cum-planning of total production, the expected requirement to meet domestic demands and the surplus that may be available for exports. 6.158 The Committee is also of the opinion that simplified and consistent policy will boost international trade and make investors utilize export benefits already available. The Committee received many complaints on denial of subsidies/assistance for export promotion. The Committee feels that the existing freight subsidy/transport allowance and service tax benefits were not being extended to the beneficiaries in right spirit. The Committee is of the view that APEDA should hold meetings all over the country at regular interval to address the grievances of the stakeholders. Also, the entire procedure of service-tax refund need to simplified and streamlined. 6.159 The Committee desires that the Government take cognizance of these handicaps and take necessary action to remedy the situation. The Committee recommends that adequate outlay may be provided for creation of a dedicated corridor for perishable agricultural and processed food products including storage infrastructure at ports and airports exclusively for agro products. Also, the customs authorities must be sensitised to accord priority clearance to perishable agro-products cargo. The Committee is of the view that high transportation costs and non-uniformity in terminal charges are the areas that needs to be reworked. The Committee was informed during its visit to Gujarat that freight cost from Gujarat to China is same as the freight cost from Gujarat to Tamil Nadu. The Committee recommends the Government to rationalize the freight charges domestically so that agro exports remain competitive in global markets. 6.160 The Committee exhorts the Governments of States and UTs in India to appreciate the fact that farmers tend to gain with development of food processing industry in and around their farms as these units provide

104 continuous organized market for them. These units further help reduce wastages of perishable crops and, through value addition, increase the shelf life of the produce. The industry also brings in a variety of products for consumers in the market and brings in valuable foreign exchange earnings. The Committee recommends that the Department of Commerce work in tandem with the Ministry of Food Processing Industries in order to impress upon the State Governments to frame appropriate policy, respectively, for the development of food processing industry as well as for setting up proper food quality and standards control mechanism in the States. The Committee feels that adequate incentives for policy formulation may be extended to the States and the exercise to overcome the lack of convergence among different Departments and State Governments must be completed by the end of Twelfth Five Year Plan. 6.161 Never the less, seeing the contours of their success stories, the Committee is confident about India’s strength and it believes that with some right tweaking here and there in the Schemes run by the Ministries of Commerce, Agriculture and Food Processing Industries; and by ensuring adequate funding, the country will be poised for a tremendous boost in the share of agriculture and processed food products in the total share of Indian merchandise exports after catering to the domestic demands. 6.162 The Committee notes that under the Scheme APEDA undertakes development and dissemination of market information based on products, infrastructure etc. The Committee finds it interesting to note that APEDA extends assistance to exporters for their brand publicity (Product specific Indian Brands) through advertisement in international print/electronic media, website development etc. However, such brand promotion is not allowed beyond three years. The Committee is of the opinion that wherever any exporter’s brand is successful in the international market over time, then APEDA should think of promoting the same, even beyond three years on cost sharing basis with the concerned exporters. Though, APEDA gives publicity to Indian agricultural and processed products under the scheme, the Committee is of the view that this component of the Scheme has taken a backseat with not much evidence of achievement. The Committee is of the considered view that optimum emphasis on publicity of Indian agricultural and processed products will help in expanding the product basket of Indian agro exports. The Committee recommends that the Department of Commerce through APEDA should carry out a comprehensive exercise to take cognizance of the export potential of many untapped agricultural commodities or their processed variant whose promotion and demand creation in international market will help farmers and others in the export chain. 6.163 The Committee appreciates the efforts of APEDA in infrastructure creation but finds that the creation of common facilities is few and far between. Further, the creation is also lop-sided and needs regional balancing. The Committee feels that APEDA has been reactive than proactive in creation of common facilities. Further, the financial assistance component for individual infrastructure is meager and this needs to be increased so that more and more exporters can take the benefit of the Scheme. 6.164 The Committee welcomes the efforts/initiatives taken by APEDA and it recommends that more Government Institutions may be nominated as National Referral Laboratories. This will enable the laboratories to generate more resources and will also help exporters with wider access for certification. The Committee also recommends that APEDA should extend assistance for laboratory facilities near the place of production for testing quality and standards of the products for the export purpose. 6.165 The Committee saw the working of solar powered drip irrigation systems resulting in higher growth and yield, innovative practices like multiplying per hectare productivity with the help of increased number of plants/trees, reducing the gestation period for fruit bearing of mango and banana trees through advanced tissue culture techniques, training of farmers and processing of fruit pulp and spices on large scale. The Committee is of the view that good agricultural practices developed by various private firms may be supported, adopted and disseminated to other parts of the country by APEDA so that farmers may reap the benefits of these practices. 6.166 The Committee hopes that the fruits of assistance extended for research by exporters association forms part of common knowledge and are not being kept in the exclusive domain of exporters associations availing the assistance. 6.167 The Committee feels that APEDA has been unable to maximize the benefits of various important R&D activities being undertaken in public and private sector. The Committee is of the view that the level of engagement of APEDA with ICAR and State Agricultural Universities is much below the desired level. The Committee desires that APEDA develop an efficacious mechanism for continuous dialogue with ICAR and State Agricultural Universities. This will help sensitize the Agricultural Institutions about the trade demands in terms of quality of cereal and horticultural products, livestock, dairy products and the export potential that may 105 be tapped with the help of desired research. The Committee also desires that APEDA should develop a framework of public-private partnership for creating a network of exchange of research findings amongst the stakeholders. 6.168 The Committee is wary about the first come first serve policy for extending transport allowance. The Committee recommends that adequate funds must be allocated for the purpose and it may be ensured that no eligible request is turned down on the pretext of unavailability of funds. Also, the allocation of subsidy must be made on a realistic and transparent assessment of needs. 6.169 The Committee is of the view that APEDA needs to augment its efforts to augment its exports both in terms of exports value and the product mix. The Committee is convinced that APEDA must take appropriate measures to fulfill its mandate and seize the opportunity available at global stage by formulating right policies, initiating appropriate practices, imparting relevant training to the stakeholders and creating proper infrastructure. The Committee feels that APEDA needs to diversify its export basket and also find new destinations for its traditional as well as new items of export. 6.170 The Committee feels that APEDA could have done better had there been no ban on the export of non- basmati rice which has been in place since 2008. The Committee has recommended the Government to open the exports of non-basmati rice in its 98th Report on Export of Food Grains-Premium Non Basmati Rice and Wheat. The Committee hopes that the Government shall work in this direction and will open the exports at the earliest so that APEDA while bringing in valuable foreign exchange enable the farmers and exporters earn higher profits. 6.171 The Committee is appalled to note that physical achievements in infrastructure development, market development, quality development, R&D, transport assistance has gone down in 2009-10 when compared to the achievements in these items for the year 2008-09. This decline is there despite higher budgetary allocation made in the year 2009-10. The Committee is of the considered view that APEDA needs to be cautious while designing its programmes and implementation thereof so that necessary boost may be given to agro exports and the momentum is maintained. The Committee strongly recommends to the Department of Commerce to release the request for additional funds for transport assistance. 6.172 The Committee finds that achievements of APEDA have been below the desired level. The reasons for this below par performance can be attributed to limited resources in terms of manpower as well as funds availability to promote exports in a comprehensive manner. The Committee during its study visits found that APEDA has confined itself to exporters only and has failed to work on the larger picture of carrying out empirical studies and sustained dialogue with other relevant agencies for formulation and promotion of best practices. This could have added value to farm activities through higher agricultural production, reduction in agricultural wastage, creation of scientific storage and quality processing facilities and finally exports of agricultural and its value-added products in international markets. The Committee found that majority of the success stories in agro exports has been the result of private initiative and enterprise. APEDA’s intervention in these success stories have been few and far between and has been broadly confined to providing assistance for pack houses, refer vans and few cold storages. The Committee feels that APEDA must take pro active steps to identify surplus agricultural products, their production hubs and take adequate measures for the proper storage and exports of these products. 6.173 The Committee recommends that the Department of Commerce revisit the working of APEDA and come up with an efficacious structure to promote exports of agricultural and processed food products in such a manner that the benefits of agro exports also goes to the last man of the production chain. 6.174 The Committee is also of the opinion that the Department of Commerce assesses the requirements of APEDA objectively and provide adequate budget to it so that it can carry out its mandate in a comprehensive and effective. The Committee noted a common demand of physical offices of APEDA in various places it visited. It was brought to the notice of the Committee that virtual offices of APEDA have not been able to deliver and the exporters were facing difficulties in traveling to nearest Regional Offices of APEDA for assistance. The Committee too is of the opinion that APEDA may open Regional Offices in all the States in phased manner but within a fixed time frame so that it can take up export promotion of agricultural and processed food products in an aggressive manner in all States of the country. In this regard, the Committee recommends the Department of Commerce to sanction additional manpower for APEDA.

106 6.175 The Committee expresses its serious concern that the farmers and tribals are unable to avail of benefits on account of ignorance of these benefits. Lack of awareness makes the farmers vulnerable and they are deprived of remunerative price for their labour. The Committee recommends that DGFT/Ministry of Commerce in coordination with Extension Division of Ministry of Agriculture, Ministry of Tribal Affairs and State Governments may take necessary measures to give wide publicity of the benefits extended under VKGUY to farmers and tribal by using audio visual & print media, internet etc. in Hindi, English and all regional languages. 6.176 The DGFT informed the Committee that DGFT deals only with exporters (or importers as the case may be) and does not go into finding out whether the benefits of exports also reaches the producer of those products. The Committee is of the considered view that Government should pierce the corporate veil if the farmers are not able to get the benefits of rising exports. The Committee recommends to the Department of Commerce to carry out a study to see the level of percolation downwards to the farmers and tribal of the benefits arising out of various schemes and activities undertaken by APEDA and DGFT. The Committee feels that this is the first and foremost requirement for promoting exports of agricultural and processed food products and minor forest produce. 6.177 The Committee further notes that the DGFT provides financial incentives for the export products/sectors under the Reward/Incentive Scheme within the financial ceiling indicated by the Department of Revenue every year. These funds are utilized to promote not only agricultural and processed food products but also other deserving products. It has been experienced that limited funds pose a constraint in expansion and deepening of the Scheme to the extent it is required as per the market demand. The Committee recommends that the Department of Commerce should take up the matter with the Department of Revenue, Ministry of Finance to take necessary measures to deepen the resource pool for the Scheme. The Committee is of the considered opinion that increased availability of funds would enable the Department to visualize long term and stable policy instruments for export promotion of agricultural and processed food products. 6.178 The Committee recommends that the Department of Commerce may take up the matter with the Ministry of Agriculture and Cooperation and ICAR to carry out an assessment of the adverse ecological impact that may be caused due to receding water table and also find solutions to make rice (basmati) cultivation a sustainable proposition. 6.179 The Committee desires that the Government take necessary action to counter the impediments being created by the EU and China to check import of basmati in their markets. 6.180 On the basis of the evidence the Committee recommends that important issues like lack of incentives for rice growers; lack of adequate storage facilities; manipulation by the people at the marketing boards of some States who were doing auction manually instead of doing it through computers; lack of initiatives for promotion of rice exports etc. should be taken care of and the Department of Commerce may initiate necessary steps in this regard in coordination with other concerned Ministries/Departments of the Government. 6.181 The Committee is of the considered opinion that occurrence of such incidents due to protocol lapses and regulatory gap due to official apathy. The Committee desires that the Department of Commerce expedite the solution to the existing problem of rice exports to the US and also undertake necessary exercise to update their data base on protocol norms of all countries so as to prevent any such occurrence in future. 6.182 The Committee notes that at present export of pulses is not allowed as there is a scarcity in the domestic market and rising prices. However, after years of sluggish growth pulses output in the year 2010-11 has increased to an unprecedented 183 lakh tonnes, higher than the previous years 146 lakh tonnes. Though the market demand is still higher than the supply, the current production has largely improved the availability of pulses. Imports too, are continuing and help further augment supplies and moderate prices. The Committee further notes that in case of most pulses, prices are close to the Minimum Support Price (MSP). In some parts of the country like Maharashtra, moong dal prices have reportedly dipped below the MSP. The Committee feels that prices below MSP are sure to discourage growers. In order to retain growers’ interest in pulses, the Government should take necessary steps inter-alia by improving marketability of the crop and by ensuring remunerative returns. 6.183 The Committee is of considered opinion that the mills which are importing pulses and then exporting it after processing should be allowed to export a minimum threshold proportion of its total import. This will help the processing units to keep running and would also help prevent unemployment. The Committee strongly

107 recommends to the Government to frame appropriate policy to help processing units operating outside the SEZs. 6.184 The Committee recommends that the benefits under VKGUY and DEPB Schemes be extended to sugar and the Ministry of Commerce and Industry should take up the matter with the Department of Food and Public Distribution with regard to total production of sugar from sugarcane; the quantity of raw sugar to be imported and the impact of ethanol on the sugarcane prices. The problems identified in these areas may be addressed at the earliest under intimation to the Committee. 6.185 The Committee appreciates the initiatives taken by both the public sector and private sector to strengthen contract farming which gives protection to farmers against crop loss and their income has increased by cultivating these high value products. The Committee, however, recommends that the farmers should get higher profit proportionate to the income derived out of export of such high value agricultural products. 6.186 The Committee observed that in view of the lack of improved seeds, low farm productivity, and outdated irrigation and fertiliser application methods, there remains a need to develop hybrid seeds as per the Indian climatic conditions, as the seeds currently being imported are very expensive. The Committee is of the view that there is an urgent need to carry out R&D work to check fruit fly infestation, which is rising every year and leads to product contamination. There is a huge demand of gherkin in the foreign markets. However, problems of shortage and increasing cost of farm workers persist in this area. The Committee recommends that research on farm mechanization and assistance to farmers in equipment purchase be provided to help them to grow labour intensive crops like, gherkins. The Committee further observed that the Ministry of Commerce & Industry and under its aegis, APEDA, should take further necessary steps with regard to duty relaxation in key foreign markets; negotiation for level playing field in the removal of non-tariff barriers relating particularly to pesticides residues etc; extending subsidies including capital subsidy to gherkin producers, etc. on urgent basis. 6.187 The Committee was happy to note the Good Agricultural Practices introduced by the firm. The Committee recommends to the Government to promote private initiative and extend necessary assistance for promotion of high value agro-processing. 6.188 The Committee recommends that the findings of the research carried out by NRCG, Pune to trace out the prohibited pesticides in Indian grapes should be studied by the Ministry of Agriculture and State horticulture boards for necessary action to prevent use of prohibited contaminants. The Committee also observed that APEDA should take initiative to establish referral laboratories for other fruits and vegetables also for promotion of their exports. 6.189 The Committee also feels that India has not been as strict as other countries on sanitary and phyto- sanitary requirements on agro-imports. The Committee notes that import of concentrated apple juice at cheaper rate from China has adversely affected the apple growers in the country. The Committee desires that the Government needs to be tough on these imports to protect our farmers and also help the farmers from glut on account of unbridled import form foreign markets. 6.190 The Committee is of the view that major agro-products like apple etc., may be declared 'Special Products' under WTO obligations and higher import duties may be imposed on these products so as to protect the farmers as well as the economy of these States. 6.191 The Committee is of the view that winery is an important agro-based industry. Preparation of wine is itself substantial value addition to Indian grapes and it is an important food processing industry which converts highly perishable grapes into non-perishable wine. It has potential to generate more employment, promote agro-tourism and can contribute substantially towards overall rural development. The Committee also observes that present situation of the Indian wine sector is not satisfactory. Drop in sales has occurred due to several reasons like, global recession, preference of consumers to imported wines in India that is also cheaper at times, and adverse duty structure in many states for wine. The Committee observes that challenges faced by Indian wine industry essentially has two perspectives, viz., challenges faced by farmers and challenges faced by wine producers. The farmers are basically facing the liquidity crunch due to non-payment by the wineries and wineries are in financial default because of operational problems, huge inventory due to accumulation of stocks, etc. thereby forming a classic debt trap in this sector. The Committee recommends that the Department of Commerce should take urgent steps for revival of this sector and recommend to the Ministry of Finance/RBI for extending necessary financial support to the wineries and farmers. The Committee also desires that APEDA and Ministry of Food Processing Industries undertake aggressive promotional campaigns for Indian wine abroad

108 and Ministry of External Affairs should also make provision for purchase of Indian wines for Indian Embassies/Missions abroad. The committee further recommends that APEDA should make sincere efforts in finding new markets in view of the Indian diaspora across the world. 6.192 The Committee observes that the Ministry of Food Processing has assisted in setting up industry supported Board at Pune for development of grape processing. It is learnt that the Board shall assist in promotion and market development opportunity of grapes and also take care of the quality concerns of wine making industry. The Board has also been assigned the task of coordinating production of wine from fruits other than grapes. The Committee hopes that the Board in coordination with APEDA or independently shall provide the link with world markets. The Committee recommends the Government to explore opportunities in North- East, Jammu & Kashmir, Uttarakhand, Himachal Pradesh and Haryana of wine making from fruits other than grapes. 6.193 The Committee observes that Indian fruits face major problem with regard to the chemical residues and harmful pesticides which are traced in the laboratories of advanced countries and depending on such findings those countries refuse to import Indian fruits. The Committee recommends that APEDA should provide standard laboratories and all States of the country for testing the chemical and hazardous materials. Moreover, the farmers are required to be trained about the requirements and standards of the fruits and fruit derivatives for promoting the exports. In this regard, the universities and other research organizations should come up with organic pesticides and fertilizers so that the farmers would not use the banned harmful substances in the field. Moreover, the Department of Commerce should strongly take up the case with the Ministry of Chemicals and Fertilizers to ban the production of all such harmful pesticides and fertilizers in the country so that these substances would not be available in the market at all. The Committee strongly recommends that organic production of fruits and vegetables be encouraged all throughout the country and export of organic products should be given added emphasis by the Government. 6.194 The Committee recommends that the Government should make adequate investments for R&D laboratory and Production and Hardening Centres for tissues. Other infrastructural facilities like drip irrigation, fruit care plastic bags, pack houses, supply chain and marketing may also be provided to the farmers. The Department of Commerce may take up the matter with the Ministry of Agriculture and Cooperation in this regard. 6.195 The Committee feels that the Cashew Export Promotion Council of India is not paying adequate attention to domestic production. The Committee feels that the industry should have been more sensitive to its sector since the exports has been declining in recent years as reflected in the above figures. 6.196 The Committee is of the considered view that cashew industry needs immediate intervention of the Government and there is an urgent requirement of its holistic development. The Committee appreciates that in pursuant to this Committee’s recommendation, on 14th June, 2011; the Planning Commission took a view that formation of a Cashew Board would provide the much needed platform for the future growth of cashew industry. Accordingly, the Planning Commission has been asked to outline the next steps regarding the formation of a Cashew Board. The Committee recommends the Planning Commission to take necessary measures towards early constitution of Cashew Board. 6.197 The Committee feels that quality control system and monitoring of the standards fixed can be further improved. The Committee also notes that there is significant difference in the price of the processed whole cashew and split cashew, as the splitting is done manually. Mostly the employees are women and no special facilities are provided to them for their safety and security. The Committee strongly feels that working condition of the laborers employed in cashew processing units should be improved. Alternatively, automation for cashew splitting may also be explored. 6.198 The Committee recommends that sesame seeds, niger seeds and castor oil be classified under oilseed and produce and should not be treated as minor forest produce. The Committee also suggests that IOPEPC should be represented as a member on Board of Trade at DGFT. 6.199 In view of this the Committee recommends that quality related issues be strictly taken up by our Government and APADA and DGFT may review the nature of restrictions imposed by them to address the concern of aflatoxin level compliance requirements of EU countries and others. 6.200 In view of the above, the Committee recommends that export of edible oil subject to quantitative ceiling may be allowed in consumer packs of upto 5 kgs. without any conditionality of “Brand”. 109 6.201 The Committee recommends that in view of the comfortable position with regard to oilseeds and edible oil production coupled with liberal import policy, the Department of Commerce may consider export of premium oils like, Mustard Oil, Safflower Oil, Sesame Oil, Refined Sunflower Oil, Refined Ricebran Oil and Groundnut Oil. 6.202 The Committee desires that adequate research should be done to develop indigenously raised breeds keeping the export requirements like petal thickness, stem length, etc.. The Committee also desires that Government should negotiate to cut down the royalty paid by the farmers for promotion of exports of floricultural products. 6.203 The Committee is of the considered view that the floriculture potential in the country has not been optimally exploited. The Committee finds that various factors have affected complete blooming of flower production in the country despite its high value in the international market in terms of price as well as demand. The Committee is of the view that the Government should come up with pragmatic policies for long term lease of public waste land to farmers, preferably farmers’ cooperatives/groups. Besides, there is a need to revamp the marketing structure of flowers which presently is largely under control of big middlemen. The Government should try to reach the individual farmer and facilitate a market for him where he could sell his product at right price. The Committee notes that floriculturists are getting loan for a period of five to seven years for fresh plantation and the interest amount on these loans starts from the date of its sanction. The Committee finds this financial arrangement anachronistic since there is normally a gestation period of two-three years before the flower unit start getting any return. Loan repayment during the gestation period is an undue burden for agriculturists and the Committee recommends that the Government take up this issue with banks and other finance bodies and find a solution to the problem. 6.204 The Committee also noted that government policies are necessarily aimed to promote the growth of small flower units since government subsidies are limited to a maximum of one acre per proposal. The Committee finds this mechanism contrarian to the successful floriculture models that has a project size of few hectares to hundred hectares. The Committee is of the considered opinion that the Department take up the matter with National Horticulture Board to extend subsidies on larger project sizes also which will help the farmers to bring economy of scale in production and export of flowers and compete internationally. The Committee desires that farmers’ cooperatives/farmers groups may be promoted for the purpose since majority of the farmers in the country have small land-holdings. 6.205 The Committee also found that pot plants and foliage varieties are getting more in demand internationally. The Committee notes that at present there is no assistance or subsidy for plantation for foliage products as well as pot plants. The Committee recommends to the Department of Commerce to frame appropriate policies for extending export incentives to foliage products as well as pot plants and also take up the matter with Department of Agriculture and National Horticulture Board for necessary assistance/subsidy for such plantations. 6.206 The Committee appreciates the demand of Indian meat and poultry abroad. However, at the same time, the Committee cautions the Government to ensure that young fertile buffaloes are not diverted for culling since it will affect milk production in the country. 6.207 The Committee observes that though meat and poultry products contributes substantially towards total export of the country, it is not getting adequate attention of the Government and the financial incentives available for agricultural products (fruits, vegetables and flowers, etc.) are not available for these. Therefore, the Committee recommends that the APEDA should have a non-discriminatory approach towards these non- vegetarian farm produces and financial incentives be applicable for the meat and poultry products as well. The Committee also notes that other than meat, by products like, tallow. This has high demand in international market and this is just wasted in India because we do not allow export of such things. Therefore, the Committee recommends that the Department of Commerce may take immediate steps to allow export of tallow as this will go a long way in promoting the total exports of the country as well as improving the economic condition of the farmers. 6.208 The Committee recommends the Department of Commerce to take up the matter with the Department of Animal Husbandry regarding technological innovation to reduce physical hardships in milk production. Also, the issues of breeding, feeding and control of diseases should be approached in scientific way. The Government should expedite the artificial insemination delivery to 50 per cent from the present 20 per cent and the semen for artificial insemination must be ensured from registered high genetic merit bull. The semen 110 stations must also be certified on the basis of quality control and success ratio. The Committee found that there is absence of reliable data on various dairying practices. The Committee strongly feels that an effective mechanism for collection and transmission of reliable data on milk production must be established and also suitable guidelines may be framed by National Dairy Development Board (NDDB) for the states to make dairying lucrative location for younger generations. 6.209 The Committee noted that casein is treated as chemical instead of dairy products. This has prompted the private dairies to manufacture casein and avail various concessions and exemptions through its export. Similar concessions/exemptions are not available on dairy products. The Committee wonders that manufacture of a unit of casein consumes double the quantity of milk which is required in manufacture of a unit of milk powder. The idea behind not extending export benefits to dairy products has been to protect the interests of consumers in India by ensuring its adequate availability. However, extension of such benefits on casein may be relooked into. The Committee recommends that casein may be treated as dairy product and not a chemical. 6.210 The Committee observes that this is an excellent example of private initiative whereby exports of dairy products have been considerably increased. The Committee desires that more such initiatives may supported in all parts of the country. 6.211 The Committee notices that Department of Animal Husbandry, Dairying and Fisheries is undertaking dairy promotion through State Governments as well as private enterprise by providing credit-linked back ended subsidy. However, paucity of funds has been the biggest impediment in the proper development of dairy sector. The Committee notes that though the contribution of dairy sector in GDP is significant yet the financial benefits/assistance extended to this sector is negligible. The Committee recommends that Planning Commission should extend greater allocation to the Department of Animal Husbandry, Dairying and Fisheries for dairy promotion which includes breed improvement of cattle and buffaloes and greater access to proper veterinary facilities across the country. 6.212 During the interaction, the Committee was informed that APEDA has been extending transport assistance subsidy on a number of AMUL products. It was requested that support may also be extended to High Freight Market like Sri Lanka, Bangladesh, Myanmar, etc. Similarly, the transport assistance should be extended to products like butter, ghee, ice-cream, shrikhand, etc. It was submitted that the interest rate on cattle loan may be lowered, income tax benefit like agricultural may be extended to milk producers, tax on co- operatives may be removed, the milk producers federation must be invited in pre budget discussions like the corporates and treatment of Animal Husbandry on the same level as that of agriculture. The Committee is of the considered opinion that the above suggestions are justified and the same may be implemented by the concerned departments. 6.213 The Committee is convinced that milk and dairy products have huge export potential. The Committee therefore recommends that the APEDA should help in institutional building; removal of the ban on export of dairy products in consumer packs; discourage exports of oil meals which are important source of cattle nutrition and to access the markets of EU, South Africa, Mexico, Indonesia for dairy products based on EIA certification. 6.214 The Committee is of the view that the efforts for promotion of organic cultivation needs to be deepened further. There are numerous instances of farmers falling prey in the hands of pesticide dealers pesticides on credit from distributors who suggest the farmers for excessive spray. The Committee finds that near absence of effective extension services leaves the farmers completely unaware of good agricultural practices. The Committee also notes that though Integrated Pest Management and Disease Management protocol are in place for all the States, yet the level of implementation of these protocol leaves much to be desired. 6.215 The Committee notes that there are 20 certification agencies in the country. However, the high cost of certification has prevented the small and medium farmers from getting certified. It seems that APEDA has come up with the solution in the form of group certification wherein 500 farmers are allowed to be certified as a group. Also, the process of certification seems to be quite complicated. First, they have to come and see that the soil is free of all chemicals. Then, they have to watch it for three years and then certify. The Committee desires that the Department takes necessary measures to simplify the certification process so that organic farming can witness optimal growth. The Committee desires that the Department of Commerce and the Department of Agriculture take up the matter at right international for a for evolving practical parameters for organic certification.

111 6.216 The Committee has learnt that the Ministry of Food Processing Industries is considering coming up with certain specific schemes for processing of organic products in the XIIth Plan. The Committee recommends that the Planning Commission earmark adequate funds for these schemes since creation of processing facilities for organic products will result in more demands for organic product thereby giving a boost to organic farming in the country.

IV. Secretariat 6.217 The Committee Section (Commerce) headed by a Assistant Director constituted the Secretariat of the Committee. Joint Secretary and Director remained incharge of the Section. 6.218 To assist the Committee in its work, materials received from the Ministries/Departments as also from other organizations and individuals were studied, and relevant points were culled out. Questionnaires for written/oral replies were prepared for use of the Committee. 6.219 The Committee studied materials like Parliamentary Debates, answers to Parliamentary Questions, Budget Estimates, Economic Survey, Mid-Term Appraisal of the Tenth Five Year Plan, Books, Journals, and Newspapers etc., relevant to the subject under examination of the Committee. The Committee sent questions based on newspapers report/articles alongwith the questionnaire based on Expenditure Budget and other relevant documents. The Committee also examined downloaded study material from websites on various subjects for preparation of reports. 6.220 The work relating to drafting, consideration and approval of draft reports by the Committee alongwith their presentation/laying, printing and distribution was undertaken.

112 ANNEXURE VI (See Para 6.4)

Details of the sittings of the Committee on Commerce during the year 2011

Sl Date of Duration Subject No. meeting Hrs. Mts. 1. 10.01.2011 1.06 Discussions with representatives of Associated Chambers of Commerce & Industry (ASSOCHAM) Council on Processed Food and Value Addition on ‘Export Promotion Schemes pertaining to Agricultural and Processed Food Products’. 2. 11.01.2011 1.21 Discussions with Secretary, Ministry of Food Processing Industries ‘Export Promotion Schemes pertaining to Agricultural and Processed Food Products’.

3. 14.02.2011 1.25 Discussions with the representatives of All India Rice Exporters Association (AIREA) and Indian Sugar Exim Corporation Limited (ISEC) on ‘Export Promotion Schemes pertaining to Agricultural and Processed Food Products’.

4. 22.02. 2011 0.30 Consideration and adoption of Ninety-sixth and Ninety-seventh Reports on the Action Taken by the Government on the recommendations/ observations of the Committee on Commerce, contained in its Ninety-third and Ninety-fourth Reports on Demands for Grants (2010-11) of the Department of Commerce and Department of Industrial Policy and Promotion, respectively.

5. 11.04. 2011 2.30 Discussion with the Delegation from European Parliament Inter- Parliamentary Delegation (Friendship Group) for Relations with India. Discussion with the Representatives of ITPO on its functioning.

6. 02.05.2011 1.28 Discussion with the Prof. S.K. Mitra, Dean, Post Graduate Studies, Professor of Fruit Science, Bidhan Chandra Krishi Vishvavidyalaya (BCKV), on Export Promotion Schemes pertaining to Agricultural and Processed Food Products.

7. 03.05. 2011 0.30 To consider future programme of the Committee and to finalise the Visit Programme of the Committee.

8. 31.05. 2011 2.10 Discussion with the representatives of Departments of Commerce, Ministry of Commerce & Industry; Agriculture & Cooperation, Ministry of Agriculture; Economic Affairs, Ministry of Finance; and; Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution on Export Promotion Schemes pertaining to Agricultural and Processed Food Products.

9. 01.06.2011 1.35 Discussion with the representatives of Department of Commerce, Ministry of Commerce & Industry on Performance of Plantation Sector - Tea Industry.

10. 20.06.2011 1.15 Discussion with the representatives of Department of Industrial Policy and Promotion, Ministry of Commerce & Industry on 'Foreign and Domestic Investment in Pharmaceuticals Sector'.

113 Sl Date of Duration Subject No. meeting Hrs. Mts. 11. 18.07. 2011 0.35 Consideration and adoption of Draft Ninety-eighth Report on 'Export of Foodgrains: Premium Non-Basmati Rice and Wheat'

12. 19.07. 2011 0.31 Selection of subject 'Performance of Plantation Sector' for examination. 13. 25.07. 2011 1.37 Oral Evidence of Secretary, Department of Commerce on Performance of Coffee Industry and Consideration and adoption of Draft Ninety-eighth Report on 'Export of Foodgrains: Premium Non-Basmati Rice and Wheat'

14. 23.08. 2011 1.02 Discussion with the representatives of the Indian Institute of Plantation Management (IIPM), Bangalore on Performance of Plantation Sector - Tea and Coffee Industry.

15. 28.09. 2011 0.25 First meeting of the Reconstituted Committee to consider its future programme.

16. 29.09. 2011 2.25 Oral Evidence of Sr. Consultant, Planning Commission on Export Promotion of Agricultural and Processed Food Products and Secretary, Department of Health, Ministry of Health and Family Welfare on FDI in Pharmaceuticals Sector.

17. 12.10. 2011 2.35 Oral Evidence of representatives of Planning Commission and Indian Pharmaceutical Alliance (IPA) on 'FDI in Pharmaceuticals Sector' 18. 13.10. 2011 1.15 Oral Evidence of representatives of Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers on 'FDI in Pharmaceuticals Sector'.

19. 21.10. 2011 1.15 Oral Evidence of representatives of Department of Scientific and Industrial Research and Director General Council of Scientific and Industrial Research (CSIR) on 'FDI in Pharmaceuticals Sector'.

20. 11.11. 2011 2.04 Oral Evidence of representatives of Secretary, Department of Commerce and Chairman & Managing Director (CMD), Indian Trade Promotion Organisation (ITPO) on the Functioning of ITPO and representatives of Indian Medical Association (IMA) on FDI in Pharmaceuticals Sector.

21. 19.12. 2011 0.30 To consider and adopt the draft 99th Report on the subject 'Export Promotion of Agricultural & Processed Food Products'.

114

CHAPTER-VII COMMITTEE ON HEALTH AND FAMILY WELFARE

I. Composition of the Committee

7.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

1. Shri Brajesh Pathak — Chairman

RAJYA SABHA

2. Shri Janardan Dwivedi 3. Shrimati Viplove Thakur 4. Dr. Vijaylaxmi Sadho 5. Shri 6. Dr. Prabhakar Kore 7. Shrimati Brinda Karat 8. Shrimati Vasanthi Stanley 9. Shri Rasheed Masood 10. *Shrimati B. Jayashree

LOK SABHA

11. Shri Ashok Argal 12. Shrimati Sarika Devendra Baghel Singh 13. Shri Vijay Bahuguna 14. Shrimati Tabassum Hasan 15. Dr. Sanjay Jaiswal 16. Shri S. R. Jeyadurai 17. Dr. Kruparani Killi 18. Shri Nimmala Kristappa 19. Dr. Tarun Mandal 20. Shri Datta Meghe 21. Dr. Jyoti Mirdha 22. Dr. Chinta Mohan 23. Shrimati Jayshreeben Patel 24. Shri R.K. Singh Patel 25. Shri M. K Raghavan 26. Shri J. M. Aaron Rashid 27. Dr. Anup Kumar Saha 28. Dr. Arvind Kumar Sharma 29. Shrimati Meena Singh 30. Shri Pradeep Kumar Singh 31. Shri Ratan Singh

______* nominated to the Committee w.e.f. 21/9/2010.

115 7.2 The Committee was re-constituted on 31st August, 2011 with the following composition:—

1. Shri Brajesh Pathak — Chairman

RAJYA SABHA

2. Shri Janardan Dwivedi 3. Shrimati Viplove Thakur 4. Dr. Vijaylaxmi Sadho 5. Shri Balbir Punj 6. Dr. Prabhakar Kore 7. Shrimati Vasanthi Stanley 8. Shri Rasheed Masood 9. Shrimati B. Jayashree 10. Shri Derek O’Brien

LOK SABHA

11. Shri Ashok Argal 12. Shrimati Harsimrat Kaur Badal 13. Shri Vijay Bahuguna 14. Shrimati Raj Kumari Chauhan 15. Shrimati Bhavana Gawali 16. Dr. Sucharu Ranjan Haldar 17. Dr. Monazir Hassan 18. Dr. Sanjay Jaiswal 19. Shri S. R. Jeyadurai 20. Shri P. Lingam 21. Shri Datta Meghe 22. Dr. Jyoti Mirdha 23. Dr. Chinta Mohan 24. Shri Sidhant Mohapatra 25. Shrimati Jayshreeben Kanubhai Patel 26. Shri M. K Raghavan 27. Shri J. M. Aaron Rashid 28. Dr. Arvind Kumar Sharma 29. Shri Radhe Mohan Singh 30. Shri Ratan Singh 31. Dr. Kirit Premjibhai Solanki

II. Subjects selected for Examination

7.3 The Committee on Health & Family Welfare selected the Clinical Trials of Drugs as a subject for examination and report in 2011. The Committee has also prepared the following Reports which are under submission:

(i) Issues arising out of the final report of the Committee appointed by the Government of India to enquire into "Alleged irregularities in the conduct of studies using Human Papilloma Virus (HPV) Vaccine" by PATH in India; (ii) The proposed introduction of Bachelor of Rural Health Care (BRHC) course; (iii) Report on Action Taken Note furnished by the Department of Health and Family Welfare on the recommendations and observations as contained in the Committee’s 45th Report of the Committee regarding "Issues relating to availability of generic, generic-branded and branded medicines, their formulation and therapeutic efficacy and effectiveness"; and (iv) Functioning of the Central Drugs Standard Control Organisation (CDSCO);

116 III. Bills referred to the Committee

7.4 The Bill, namely, the National Commission for Human Resources for Health Bill, 2011 was referred to the Committee for examination and report in 2011. A Bill referred to the Committee during 2010, i.e., the National Institute of Mental Health and Neuro-Sciences, Bangalore Bill, 2010 was inherited by the Committee during 2011. The Committee presented its report on the Bill to the both Houses of the Parliament on the 4th March, 2011.

IV. Constitution of Sub-Committees of the Department-related Parliamentary Standing Committee on Health & Family Welfare

7.5 Three Sub-Committees were constituted during the year 2011 namely-(i) Sub-Committee on the examination of the functioning of All India Institute of Medical Sciences (AIIMS); (ii) Sub-Committee on the examination of the functioning of Central Government Health Scheme (CGHS) and Sub-Committee on Draft Reports.

V. Review of Work Done

(a) Sittings of the Committee

7.6 During the year, 2011, the Committee held in all, 15 meetings lasting over 25 hours and 27 minutes. A statement showing the dates and duration of each sitting of the Committee with subjects discussed during this period is given in Annexure-VII.

(b) Sitting of the Sub-Committee

7.7 During the year 2011, the sittings of the Sub-Committee-I on AIIMS and Sub-committee- II on CGHS are given below:

(i) The Sub-Committee-I held in all 7 meetings lasting our 11 hours and 46 minutes; and

(ii) The Sub-Committee-II held in all 4 meetings spreading over 4 hours and 50 minutes. A statement showing the dates and duration of each sitting of the Sub-Committees I & II with subjects discussed during this period is given in Annexures-VIII & IX.

(c) Study visits: - The details of the study visits undertaken by the Committee are given below:

(i) The Committee undertook an on-the-spot study visit to CGHS Wellness Centres at Pusa Road, Inderpuri and Dwarka on the 6th April, 2011 in connection with examination of the functioning of Central Government Health Scheme (CGHS). The Committee also interacted with the CGHS doctors and beneficiaries and Area Welfare officer enquired about the quality of services being offered.

(ii)The Committee visited Tamil Nadu and Karnataka from the 1st to 5th November, 2011, in connection with the examination of the functioning of Central Drugs Standard Control Organisation (CDSCO) and Central Government Health Scheme (CGHS); evaluation of implementation status of National Rural Health Mission (NRHM); and to make on-the-spot visit to Pasteur Institute of India (PII), Coonoor and BCG Vaccine Laboratory, Guindy to assess the action taken by the Government on the Committee’s recommendations in its Reports.

(iii) The Sub-Committee-II on CGHS undertook local study visits to CGHS Wellness Centres in the NCR region - Mayur Vihar Phase-I, New Delhi; Sector-11, Noida; and Sector-19, Ghaziabad on 29th September, 2011. The Sub-Committee interacted with the CGHS doctors and beneficiaries and enquired about the quality of services being offered there. The Sub-Committee also inspected various facilities available at the Wellness Centres and received memorandum from the beneficiaries.

117 7.8 The details of study visit of the Main Committee are given below:—

STUDY VISITS

Places visited Date Agenda Chennai 01.11.2011 Assembly at Chennai (Tamil Nadu) Interaction with the Representatives of the CGHS authorities and visited to BCGVL, Guindy, Airport Halt Office and two NRHM centres i.e. (i) Primary Health Centre (PHC) at Medavakkam and PHC Nandhivaram.

02.11.2011 (i) Interaction with the Representatives of the Central Drug Testing Laboratory and State Drug Testing Laboratory. (ii) Interaction with State Government Officers along with officers of CDSCO and NRHM on (a) Working of State Drug Control Organisation and (b) Implementation of NRHM

Coonoor 03.11.2011 Interaction with the Representatives of the Pasteur Institute of India (PII), (Tamil Nadu) Coonoor. The Committee also heard the views of staff of Council of PII.

Mysore 04.11.2011 (i) Interaction with the Representatives the State Government of Karnataka (Karnataka) on implementation of NRHM. The Committee also visited to a Primary Health Centre in Kadakola, Mysore District, Karnataka and interaction with them.

Bangalore 0511.2011 (i) Interaction with the representatives of CGHS Wellness Centres at (Karnataka) Koramanglala, Bangalore. The Committee also visited to State Drug Testing Laboratroy and Private Drug Testing Laboratory. (ii) Discussion with State Government officers along with Officers of CDSCO and NRHM on (a) working of State Drug Control Organisation; and (b) Implementation of NRHM.

VI. Reports Presented

7.9 During 2011, the Committee presented the following Reports to both the Houses of Parliament:—

Sl. Report Date of presentation/ Subject No. No. laying of Reports 1. 48th 04.03.2011 Report on Action Taken Note (ATN) furnished by the Department of Health Research on the recommendations / observations contained in the Forty-first Report on Demands for Grants (2010-11) of the Department. 2. 49th 04.03.2011 Report on Action Taken Note (ATN) furnished by the Department of AIDS Control on the recommendations / observations contained in the Forty-second Report on Demands for Grants (2010-11) of the Department.. 3. 50th 04.03.2011 Report on Action Taken Note (ATN) furnished by the Department of AYUSH on the recommendations / observations contained in the Fortieth Report on Demands for Grants (2010-11) of the Department. 4. 51st 04.03.2011 Report on Action Taken Note (ATN) furnished by the Department of Health and Family Welfare on the recommendations / observations contained in the Thirty-ninth Report on Demands for Grants (2010-11) of the Department.

118 Sl. Report Date of presentation/ Subject No. No. laying of Reports 5. 52nd 04.03.2011 Report on the Action Taken by the Department of Health and Family Welfare on the recommendations/ observations of the Committee contained in its Forty-third Report on Action Taken by the Department of Health and Family Welfare on the recommendations/observations of the Committee contained in its Thirty-eighth Report on “Major issues concerning the three Vaccine Producing PSUs, namely, the Central Research Institute (CRI), Kasauli, the Pasteur Institute Of India (PII), Coonoor, and the BCG Vaccine Laboratory (BCGVL), Chennai.”

6. 53rd 04.03.2011 Report on the National Institute of Mental Health and Neuro- Sciences, Bangalore Bill, 2010.

7.10 Minutes of the meetings of the Department-related Parliamentary Standing Committee on Health and Family Welfare were prepared and enclosed with the relevant Reports at the time of the presentation to both the Houses.

VII. Summary of Recommendations

(a) 48th Report

Introduction

7.11 While deposing before the Committee on the 6th April, 2010, Secretary, Department of Health Research had drawn the attention of the Committee towards an ambitious plan for taking up a number of schemes for augmentation of infrastructure and manpower for conducting medical research. The Committee is surprised to note that the only progress made since then is that proposals have been sent to Planning Commission for in-principle approval for these schemes. However, the Committee is surprised to note that in response to its recommendations to strive to implement and translate within six months the major schemes as enumerated in para 1.3 of 41st Report of the Committee, the Department has chosen to merely state that it “needs no comments.” The Committee had hoped that the Department would pursue the schemes vigorously. However, Department’s ‘needs-no-comments’ response leaves the Committee wondering as to whether the Department is pursuing the schemes with a sense of purposefulness or has left the schemes open-ended. The Committee would like to point out that all these schemes are envisaged to provide incentives and augment and strengthen the infrastructure and manpower for conducting medical research. With these schemes awaiting in- principle approval of the Planning Commission, the Committee can well imagine the time likely to be taken in the completion of all procedural formalities required for the schemes taking off in the real sense. The Committee would appreciate if the matter is pursued vigorously with the Planning Commission and the schemes are implemented under a time-bound Action Plan closely monitored by the Department.

7.12 The Committee is happy to note that a number of initiatives have been taken by the Department for developing a policy framework and guidelines for research activities. The Committee would like to emphasize that both the National Health Research Policy and the knowledge management policy need to be finalised at the earliest; only then it would be possible to adhere to carrying out research activities under a policy framework and ethical guidelines thereby serving the cause of general public. The Committee would also appreciate if the draft legislation on ethics is put in place on a priority basis, keeping in view the unethical research projects being taken up in the country time and again.

Budgetary Allocation

7.13 The Committee expresses its displeasure over the tenor of response of the Department. The Committee, while making the above observation had expected that at least from this year onwards, the Department would formulate a roadmap for better administration of funds. However, the Department’s “needs- no-comments” response clearly indicates its lackadaisical approach towards overcoming the shortcomings of 119 financial administration. The Committee would, therefore, like the Department to be more circumspect henceforth in formulating its replies to the observations/ recommendations of the Committee. The Committee, simultaneously, reiterates its earlier recommendation that the Department formulate a concrete Action Plan for overcoming the shortcomings of financial administration. The Committee hopes to be apprised of the action plan of the Department in this regard.

7.14 The Committee had made the above observations/recommendations keeping in view the fact that there was a huge mismatch between the projected requirement of funds of the Department and the allocations made by the Planning Commission. The Committee had noted that the resource cruch would seriously impair such critical areas as establishment of a network of virus diagnostic laboratories, creation of facilities for health research, setting up of model rural health research units etc. The Committee, while investing with Parliamentary support the demand for higher allocation of funds to the Department, had expected the Department to bring its observations/ recommendations to the authorities concerned. However, the Committee finds it disconcerting that the Department, instead of acting upon the recommendation by way of bringing the same to the notice of the Planning Commission, has simply resorted to the liberal use of the phrase “needs no comments”. The Committee is compelled to observe that such a response not only calls into question the seriousness on the part of the Department in initiating appropriate measures to overcome the inadequacy of funds but also somewhat evinces ignorance on its part of Parliamentary practices and procedures. The Committee, therefore, once again exhorts the Department to take urgent measures to bring its observations/recommendations contained in paras 2.6, 2.7 and 2.8 of its 41st Report on Demands for Grants (2010-11) to the notice of Planning Commission so that the shortage of funds does not become a stumbling block in such a critical area as health research.

Indian Council of Medical Research

7.15 While placing on record its appreciation for various research projects undertaken by ICMR, the Committee has emphasized the imperative need for delivery of products of health research to the targeted beneficiaries. The Committee would have appreciated if specific feedback data about the progress made at least in making use of outcome of research projects on life-threatening/chronic diseases like HIV/AIDS, Cancer, TB, Cardiovascular problems afflicting the general masses had been made available to it. The Committee can only reiterate that the Department which is the nodal department for conducting and coordinating out health research activities at various levels in the country has also to play a major role in judicious application of such path- breaking research activities.

Advanced Training in Research in Medicine and Health

7.16 The Committee observes that the Expert Group constituted to identify the areas common with other science agencies is awaited. The Committee is not aware about the date of constitution of the Expert Group. It is also not known as to when the Report of the Expert Group is expected to be given. The Committee does not appreciate the absence of any scheduled time-frame in respect of such a vital area. The Committee, therefore, would like to impress upon the Department to expedite the report of the Expert Group so as to ensure that activities proposed to be undertaken during 2010-11 indicated below at least are initiated by the year end:

• Programme to provide access to work in frontline areas in the state-of-the art facilities • Providing fellowships • Training, supporting multi-disciplinary and multi-sectoral team of researches and career advancement scheme for young researchers

Matters Relating to Epidemics, Natural Calamities and Development of Tools to Prevent Outbreaks

7.17 The Committee opines that merely getting the schemes approved would not be sufficient in the matter and timely execution of schemes/plans is absolute necessity. The Committee would like to be apprised of the headway made in the said direction.

120 HPV Vaccine

7.18 The Committee observes that as a result of its intervention, the State Governments have been advised by the Department not to carry out HPV vaccination and a Committee has been appointed to investigate ethical issues raised in the matter. The Committee is not aware about the date of setting up of the Committee. However, absence of any specific time-line for submission of Report of the Committee in the Action Taken Note given by the Department makes the Committee somewhat apprehensive. Like so many Committees set up by the Government, findings of this Committee, as and when received, may remain on paper only. The Committee, therefore, recommends that every effort should be made to expedite the Report of this Committee so that real facts about the HPV Vaccine trial are made known without any further delay and corrective measures not only in respect of this case but for all such ongoing/proposed clinical trials of drugs/vaccines are taken. The Committee also recommends that the Department should at least now work in close coordination with other concerned departments/organizations to undertake a comprehensive analysis of the process of granting permission to research studies having hazardous effects on health and put in place a fool-proof system for pre-empting unethical research studies.

Manpower Requirements for DHR and ICMR

7.19 The Committee had invested the creation of posts of scientists and matching posts of research fellows and technical posts with Parliamentary support and it was the obligation of the Department to make earnest efforts to apprise the authorities concerned of the Committee’s recommendation in this regard so that necessary action could be initiated towards creating and filling up the posts.

7.20 The Committee is therefore baffled by the Department’s use of the phrase “needs no comments”. The phrase employed by the Department lends credence to the impression that it does not attach much importance to the creation of necessary posts. The Committee, therefore, urges upon the Department to attend to the matter with an astute sense of sincerity and urgency.

(b) 49th Report

Budgetary Provisions

7.21 The Committee appreciates the efforts of the Department enabling it to bring down the availability of unspent balances with the various SACS at the end of the financial year 2009-10, like Karnataka (from Rs. 11.34 crore to Rs.9.65 crore), Tamil Nadu (from Rs. 8.40 crore to Rs.7.06 crore) and West Bengal (from Rs. 8.99 crore to Rs.7.06 crore). However, the same is still on the higher side and is not justifiable. The Committee takes note of the requirements of working capital funds with SACS at the beginning of the financial year to meet the committed liabilities like salary, operational expenses etc. as first installment of funds is released only in May/June. At the same time, it is also a fact that releases to States are being done through e-transfer to reduce transit delay with salary payments to the employees of the peripheral units in many States being made electronically. In such a scenario, it cannot be considered appropriate and justifiable that funds to the tune of Rs 7 to 8 crores are available as unspent balance at the beginning of the year which could have been utilized by the SACS for their targeted activities. The Committee, accordingly, recommends that all activities as included in the Annual Action Plan issued to the States before the close of the previous year and placed on the NACO website need to be implemented as envisaged.

Role of NGOs

7.22 As per latest details furnished by the Department, as on 31st March, 2010 recovery of Rs 8,81,37,884 has been made from 304 discontinued NGOs which were released funds amounting to Rs. 11,99,05,133 from April, 2007 to March, 2010. While appreciating the considerable progress made so far, the Committee takes a serious view of the disturbing trend noticed in respect of some States. Out of the 304 discontinued NGOs, maximum number of such NGOs, i.e. 50 are located in Andhra Pradesh. Total amount to be recovered from these NGOs is still being calculated. Only thereafter, defaulting NGOs will be identified for taking action. Besides that, out of 27 States/ UTs, no recovery has been made so far in case of Assam, Chhattisgarh, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Meghalaya, Nagaland, Orissa, Punjab and UP. All these States have varying number of discontinued NGOs with Madhya Pradesh having the maximum number of 23 NGOs showing recovery of Rs. 60,53,234. What is a cause of serious concern for the Committee is that in most of the 121 cases, NGOs are simply not traceable. It seems that corrective measures like monitoring mechanism in force at NACO and respective SACS level, State visits of NACO Officers, six monthly financial audit by external auditors have either not proved to be effective enough or are not being implemented properly. The Committee would appreciate if all the cases of discontinued NGOs are pursued vigorously and required action taken without any further delay.

Setting up of New District Level Blood Banks.

7.23 The Committee acknowledges the stand of the Department that the funds for infrastructure and manpower are not included in the Pattern of Assistance and is the responsibility of the State Governments. Factual position as given by the Department clearly indicates that majority of the State Governments have failed to fulfil their commitment of providing physical infrastructure, i.e. a building having an area of 100 sq.mts. and required manpower of Medical Officer, Lab Technician, Nurse and Support Staff. Moreover, when NACO has already procured the equipments for these Blood Banks, they need to be supplemented by State Governments coming forward with fulfillment of their commitments. The Committee can only reiterate that the Department has to play a pro-active role by taking up the matter with the concerned State Governments, if need be at the highest level. It can also help the States financially which are facing resource constraints. The Committee is of the firm opinion that the Department has to play the role of catalyst in achieving the targets under this component rather than remaining rigid on procedural aspects.

7.24 The Committee observes that the establishment of four Metro Blood Banks as Centres of Excellence aimed at having four model Blood Banks in Delhi, Mumbai, Chennai and Kolkata with latest equipments and technology is in its third year of conceptualisation but still a lot needs to be done to actually realize the same. Though the Department hopes to start construction on the three sites, the issue of land in case of Mumbai is still being sorted out. The Committee would like to emphasize that the road-map prepared for setting up these Blood Banks needs to be adhered to by all concerned, especially the State Implementing Agencies. The Committee is not aware about the targeted date of completion of construction work for these Blood Banks which is expected to start during the current financial year. One must also not forget the fact that these Blood Banks can be considered fully functional only when they are well-equipped having the required infrastructure and manpower. As regards the Model Blood Bank in Tirupati, the Committee hopes that by now it would have started functioning as per the latest information submitted by the Department.

New Initiatives

7.25 The Committee is dismayed at the manner in which establishment of the National Blood Transfusion Authority and setting up of a Plasma Fractionation Plant is still entangled in paper work. As both these components are crucial for furthering the objectives of NACO, the Committee had called for reasons for the inordinate delay and the deadline by which these two would be set up. Though the reply of the Department briefly indicates the progress made so far, nowhere it has specified the reasons for the delay or the timelines set by it. In the opinion of the Committee this is a case of poor planning and implementation strategy on the part of the Department. The Committee recommends to the Department to revisit its strategy and set out necessary corrective measures to achieve these two targets at the earliest.

National Pediatric Initiative

7.26 The Committee had called for a status of all HIV+ children in India, State-wise and had specifically recommended to the Department to keep a strict vigil on rising trends of HIV prevalence among pregnant women in low prevalence States and, accordingly, had sought details of the specific steps taken by the Department in this regard. The Department in its response has just reproduced the existing procedure being adopted by it. The specific information sought by the Committee is missing. The Department may, accordingly, provide necessary details in this regard.

122 (c) 50th Report

Budgetary Allocation

7.27 The Committee is happy to note that as a result of the Department’s increased emphasis on monitoring, the trend of fund utilization has gained momentum in 2010-11. However, the Committee notes that besides PPP, the utilization of allocated funds for International Cooperation is also far below the desired level and needs to be given due attention. As regards potential requirement of additional funds for Hospitals and Dispensaries, the Committee lends its full support for augmentation of funds for Hospitals and Dispensaries and National Mission on Medicinal Plants, if the situation so warrants. Committee’s only advice to the Department would be to ensure judicious utilization of the scarce resources at its disposal. The Committee would also like to be apprised of the specific measures taken by the Department to sensitize the State Governments and existing institutions to come forward with proposals for funding under PPP and the outcome thereof. The Committee also recommends that all the stakeholders should be kept informed about vast potential of AYUSH medicines available in the country.

Strengthening of Pharmacopoeial Laboratories

7.28 The Committee observes that the savings under the above head occurred in 2007-08, 2008-09 and 2009-10 due to non-filling up of posts, delay in supply of instruments by HSCC (India) Ltd., delay in construction work and non-finalization of recruitment rules etc. The Committee is constrained to observe that these problems were not of insurmountable nature and could have been easily sorted out had the Department pursued the matter vigorously with the agencies concerned. If it takes almost three years for the Department to finalize recruitment rules for the posts and get necessary approvals from local authorities, it is a sad commentary on its functioning and calls into question its seriousness of exercising fiscal prudence. Now that all the groundwork has been completed, the Committee would expect the Department to monitor the progress in respect of all items of work meticulously and come up with substantive achievements in this regard.

Setting up of National Board for Medicinal Plants

7.29 The Committee would like to state that the National Medicinal Plants Board (NMPB) has the primary mandate of coordinating all matters relating to medicinal plants and support policies and programmes for growth of trade, export, conservation and cultivation of medicinal plants. Despite the above fact, only Rs. 40.00 crore could be made available out of a provision of Rs. 50.00 crore made in BE 2009-10. Taking note of the fact that the expenditure under this head was Rs. 39.19 crore as on 15th March, 2010, the Committee is pretty certain that the entire allocation under this head must have been utilized by the end of the financial year 2009-10. The Committee observes that while there have been recurrent savings under some of the heads with the budgeted amount being surrended year after year, such an important initiative as setting up of NMPB had to suffer financial cruch due to skewed priorities of the Department. The Committee would, therefore, tend to infer that there was something wrong with prioritizing policy of Department of AYUSH and impress upon it to be more careful in this regard.

CGHS Ayurveda Hospital and Educational Institutions

7.30 The Committee feels pained to note that despite timely placement of funds at the disposal of CPWD, it could not utilize the same. The Committee would like the Department to ascertain the reasons for the same from CPWD and apprise it about it. The Committee feels that this delay is an issue of governance and our fast- growing country cannot afford to continue with slow-moving mindset of yesterday. The Committee would also like the Department to address the issue of non-filling up of vacant posts with a renewed vigor and apprise it of the progress made in this regard.

Pending Utilization Certificates

7.31 The Committee regrets to note that despite the Department’s claim of persistently pursuing the matter with the concerned State authorities and of its efforts proving efficacious in liquidating the UCs, the amount involved in pending Utilization Certificates is still substantial. For example, out of Rs. 107.61 crore released 123 upto 2005-06, UCs amounting to Rs. 93.00 crore are still pending. Similarly, the amount involved in pending UCs in the States mentioned in the table above is too high to be comfortable with. The Committee feels that the liquidation of UCs is not being pursued as a priority, but has been reduced to a ritualistic exercise where routine meetings are held and letters exchanged. The Committee is of the opinion that monitoring of liquidation of pending UCs needs to be done by a dedicated officer of senior rank who should focus more on innovative measures and outcomes rather than routine follow-up measures.

Utilization of Plan Allocation for North Eastern States during the Eleventh Plan

7.32 The Committee is happy to note that in pursuance of its recommendation regarding chalking out a specific action plan for optimum and judicious utilization of allocated funds in N.E. Region, a Resource Centre has been set up at Guwahati and a pilot project for establishment of 50 bedded/10 bedded hospitals in N.E. States has been launched. However, the Committee feels that enabling an objective assessment of the initiatives taken by the Department is an imminent necessity for evaluating the success of the initiatives and formulating adequate response to various drawbacks noticed in the process. The Committee, accordingly, recommends to the Department to carry out an assessment of the measures/initiatives taken by it to increase the absorptive capacity of the N.E. States.

Statutory Institutions

7.33 Almost four and a half years have elapsed since the Committee presented its Report on the Indian Medicine and Homoeopathy Pharmacy Council Bill, 2005 to Parliament on 28th July 2006. The Committee feels that the Pharmacy Council should have become a reality long back. Now that a revised draft has been prepared for seeking approval of the Cabinet, the Committee is sanguine that the Department would take positive measures in this direction. However, the latest feedback from the Department clearly indicates that a proposal mooted by it for setting up a National Commission for Human Resources in AYUSH Systems would also have under its jurisdiction the proposed Pharmacy Council. The Committee is rather disappointed by this development. Keeping in view the prolonged procedure involved for completing all the formalities for setting up a statutory body, the Committee can only conclude that in the near future, there is little hope for having either the Indian Medicine and Homoeopathy Pharmacy Council or the National Commission for Human Resource in AYUSH Systems. The Committee, therefore, would appreciate if the issue is finally decided and the required statutory body is in place at the earliest.

7.34 The Committee is happy to note that a number of initiatives have been undertaken by the Department for updation of Central Registers of Indian Medicine and Homoeopathy. Such corrective measures were long overdue. The Committee would like to emphasize that by the end of Eleventh Plan, both the Registers should be fully updated.

Hospitals and Dispensaries Expansion of AYUSH System under CGHS

7.35 The Committee notes that the Department is not able to meet the targets set in 10th Plan of providing financial assistance to CGHS for opening 7 Ayurvedic, 7 Homoeopathic, 3 Unani and 2 Siddha dispensaries alongwith 2 Yoga units. The Department has not bothered to comment on meeting the target set for 11th Five Year Plan. The Committee would like to be apprised of the current status in this regard.

7.36 It is very strange that though the Mid-term assessment of Eleventh Plan had emphasised to provide AYUSH facilities in 10 CGHS dispensaries by 2011-12, the Ministry of Health and Family Welfare has decided to halt any further expansion of infrastructure in CGHS on the ground that a Health Insurance Scheme is being contemplated for Central Government Employees. At a time when the avowed objective of the Government is to bridge the gaps in health infrastructure and human resources, the Committee is at a loss to understand as to why such a retrograde decision has been taken, especially in view of the dismal picture of health infrastructure in the country. The Committee is of the view that even if the CGHS is restructured, Health infrastructure created under it would not go waste, but contribute to outreach of health care services in one way or the other. The Committee, therefore, recommends that the Ministry should shed its indecisiveness in the matter and take

124 concrete action towards extending AYUSH facilities in CGHS dispensaries as per the Mid-term Appraisal of the Eleventh Plan.

Research and Development

7.37 The Committee is not satisfied with the evasive reply given by the Department. Keeping in view that there is no effective cure/treatment for cancer in the modern system of medicines, the Department should make all out efforts to exploit any significant achievement by any system of medicine towards treatment/cure of such a deadly disease. The adequate and effective mechanism should be in place to expedite scientific validation of any claim in this regard. The Committee notes with dismay that the Department has failed so far in carrying out scientific validation of such claims due to procedural delays and lack of adequate research work and expertise in this regard. The Committee would reiterate once again that the process of clinical trial on two claims of cancer needs to start at the earliest. Contention of the Department that in the event of any drug being finally marketed, the benefit would be shared by the Council and the claimant, does not lead to the ultimate goal of providing relief to patients suffering from cancer. It is a well-known fact that this disease is spreading at an alarming rate with new dimensions emerging. In such a scenario, the Department along with the Research Council needs to play a pro-active role.

National Medicinal Plants Board

7.38 The Committee is not satisfied with the reply of the Department and would like to be furnished with a Status Note, detailing inter-alia at what level and frequency the matter was taken up with the State Governments for expediting furnishing of UCs and the updated status of UCs and the amount involved therein. The Committee notes that the Department has not conveyed the steps taken to address the inherent problem areas hampering the Scheme. The Committee observes that the NMPB is mandated to coordinate all matters relating to medicinal plants and support policies and programmes for growth of trade, export, conservation and cultivation of medicinal plants. The Committee is also given to understand that the multinationals are procuring the precious medicinal plants at negligible prices and exporting them. Since medicinal plants are not only a major resource base for the traditional and alternative health care systems but are also a source of livelihood for a large segment of our population, the Committee would like the Department to address the issues of growers’ rights, prevention of over-exploitation of medicinal plants, protection of biodiversity, patent-related issues and determination of fair prices of medicinal plants.

7.39 The Committee notes that some headway has been made towards filling up the vacant posts in NMPB. However, a lot still needs to be done in this direction. The Committee, therefore, desires to be apprised of the updated status of vacancies and the outcome of efforts made towards filling up of those vacancies. (para 8.8)

7.40 The Committee notes that the Department has detailed the decisions taken by NMPB in its meeting held on 10th July, 2007. However, nothing has been mentioned about the follow-up action taken thereon, though more than three and a half years have passed since then. This silence is all the more baffling in view of the fact that NMPB itself felt in 2007 that strengthening of State Medicinal Plants Boards is key to proper implementation and monitoring of the project. The Department should have acted like a catalyst and ensured forward movement in the matter; instead, it has chosen to remain silent on the issue, which is deplorable. The Committee would, therefore, like to be apprised of the steps taken/being taken towards implementing the various decisions taken regarding strengthening of SMPBs.

Quality Control of Ayush Drugs

7.41 This is yet another instance of casual reply by the Department. Instead of furnishing a comprehensive reply detailing the specific measures being taken/contemplated to be taken towards overcoming the shortcomings as identified in the mid-term appraisal, the Department has merely made a generic statement which, in the opinion of the Committee, is tantamount to being evasive. The Committee, accordingly, recommends to the Department to shed more light on the measures being taken for addressing the shortcomings, especially those concerning quality control and quality assurance.

125 7.42 The Committee is well aware that compliance of labeling provision on AYUSH drugs as mandated under the Drugs and Cosmetics Act, 1940 and Rules made thereunder is the responsibility of State Drug Licensing Authorities. Merely writing to the State Governments in this regard from time to time will not ensure the compliance of this very crucial condition. The Committee has been repeatedly emphasizing the need for having an effective monitoring mechanism for quality control of AYUSH drugs both with the objective of protecting the consumers’ interest as well as propagation of this alternative system of medicine.

Ayush Pharmaceutical Industry Indian Medicine Pharmaceutical Corporation Limited (IMPCL)

7.43 The Committee welcomes the much awaited approval of the 3rd phase of modernization of the Indian Medicine Pharmaceutical Corporation Limited (IMPCL). The Committee hopes that implementation of this project will be accomplished in a time-bound manner.

Development of Common Facilities for the AYUSH Industry Clusters

7.44 The Committee is constrained to observe that the reply of the Department is full of ambiguity. Instead of unraveling various dimensions of under-utilization of the funds in unambiguous terms, the Department has sought to prevaricate. For example, the Committee was earlier informed by the Department that the allocation of Rs. 25.00 crore in BE 2009-10 was brought down to Rs. 10.00 at RE stage due to reduced allocation as a whole for the Department. The Department has now informed that allocation had to be reduced to Rs. 10.00 at RE stage due to inadequate proposals received during the 1st half. The Committee would therefore, like the Department to explain this ambiguity. The Committee also notes that against the utilization figures of Rs. 8.57 crore as on 15th March, 2010, the funds released upto 31st March, 2010 amounted to Rs. 16.54 crore. The Committee would, like the Department to indicate the proposals received for funding under this head and the amount released for them, month-wise.

(d) 51st Report

Budgetary Allocation

7.45 The Committee had urged upon the Department to undertake a comprehensive analysis of the trend of expenditure for the past three years with a view to improve the utilization level of the budgeted funds as also to improve upon the existing system of assessing requirement of funds. However, the Committee is constrained to observe that the Department’s response has been outrightly evasive inasmuch as it has reproduced its existing procedure of examination of fund requirements. The onus of providing Plan Outlay has been solely put on the Planning Commission. The Committee opines that if the utilisation of funds had been sub-optimal, how it can expect allocation of enhanced amount of funds from the Planning Commission for its various programmes/policies/schemes. The Committee finds that sincere efforts are lacking on the part of the Department in this direction. No innovative or new strategy, as exhorted by the Committee, seems to have been worked out by it. In such a scenario, the Committee does not hope any positive change in this regard if the Department’s approach remains unchanged. The Committee, therefore, recommends to the Department to put forth concerted efforts to convince the Planning Commission for allocation of adequate funds.

Central Government Health Scheme (CGHS)

7.46 The Committee in its earlier report had appreciated Department’s initiative of introducing a pilot project for Preventive Health Check-up for pensioners and serving employees over the age of 40 years at CGHS dispensaries, Sector-12 and Sector-4, R.K. Puram, New Delhi. As informed a good number of beneficiaries have benefitted from this facility since its introduction on 24th February, 2010. However, contrary to Committee’s recommendation, the Department is non-committal on either the extension of the duration of the pilot project or extending the project to the areas covered by other wellness centres. The Committee would like to reiterate its earlier stand that in view of the increased lifestyle related diseases, the Department needs to expand this initiative to expand its outreach to more beneficiaries.

126 7.47 The Action Taken Note furnished by the Department has proved beyond doubt the apprehensions of the Committee that the Government wants to dilute its social obligation towards its employees. The justification by the Department that the proposed health insurance scheme is primarily aimed at Central Government pensioners residing in the areas not covered by the CGHS and also for the serving Central Government employees presently not covered by the CGHS, does not hold ground as it would be mandatory for the new entrants in Government service and those retiring subsequent to its introduction. Further, the justification that the capping is a well thought out exercise and would be more than adequate to cover the health needs of the beneficiaries is not convincing at all. To prove its point the Department has even stated that a provision for the creation of corpus for reimbursement of expenditure beyond the annual limit of Rs.5.00 lakhs, on a case to case basis, is also a part of the scheme. The Committee finds this very intriguing that when it is ready to shell out reimbursement over and above this limit, why the limit has been prescribed at all for the beneficiaries. It is understandable that the Department needs to place a capping while negotiating with an insurance agency, but keeping discretion of Department to reimburse amount over and above this amount on a case to case basis dilutes the responsibility of the Department and can lead to favouritism or even corruption. Another major concern is that whether the Insurance agency with which the Government is proposing to reach a tie up would promote cashless facilities with beneficiaries. The Committee has serious apprehensions about the adequacy of this scheme. The Committee, accordingly, outrightly rejects the forced enforcement of the proposed Insurance Scheme to Government servants and recommends to the Department to concentrate on strengthening this well structured CGHS scheme and continue to fulfil Government’s social obligation towards its employees.

7.48 The Committee has been advocating the idea of CGHS being transformed into a truly service oriented venture of the Department. However, to its dismay, the Committee is finding it very discouraging on the part of the Department not taking it in the right spirit and that too when it is for its own set of employees. The Committee fully shares the concerns of the Department regarding shortage of doctors. The Department needs to be receptive to the idea, which is apparently lacking. The Committee would like to point out that when the double shift system was operational, morning and evening shift timings were having lesser hours. With the switch-over to double shift system, the present duty hours would be accordingly adjusted. The question of having substantial additional staff would, therefore, not arise. Therefore, the Committee would again recommend to the Department to improve upon the work culture according to the need of the time and move forward in this regard.

7.49 The Committee observes that 13 plots of land in different localities of NCT of Delhi are under the possession of CGHS for construction of CGHS Wellness Centres. All these plots of land are at various stages of approval. Status Report submitted by the Department clearly indicates that construction work is not going to start at any of the centre in the near future. The Committee is not aware about since when this process started. The Committee can only conclude with conviction that considerable time has passed and no progress worth mentioning is expected. The Committee is intrigued with the details made available about Wellness Centre at Vasant Vihar. It is very strange that although the sanction for the Centre is not there, construction of boundary wall and provision of security at the premises has been duly sanctioned. The Committee apprehends that this particular plot at Vasant Vihar has been lying earmarked for the past so many years. The Committee recommends that the Department should review the position in respect of all these plots of land and expedite the construction process of Wellness Centres.

7.50 The Committee is happy to note that a decision has been taken for keeping the package rates offered to empanelled hospitals and diagnostic centres valid for a period of two years with the option to continue the same for one more year with mutual consent. The Committee would like to reiterate that for life-threatening diseases like cancer, specialized hospitals are the best option for patients. In the Capital where the maximum number of CGHS beneficiaries are residing, facilities available at Hospitals like Rajiv Gandhi Cancer Hospital and Dharamshila Cancer Hospital not reaching them due to their remaining outside CGHS empanelment cannot be ignored and needs due consideration of the Department. The Committee would, therefore, like to emphasize that feasibility of such specialized hospitals under CGHS may be explored.

7.51 The Committee appreciates the number of initiatives taken by the Department for effective functioning of CGHS. The Committee however, feels that wide publicity through local and print media needs to be given in this regard. Only then CGHS beneficiaries will be in a position to avail of such facilities.

127 Safdarjung Hospital and Vardhman Mahavir Medical College, New Delhi

7.52 The Committee is dismayed at the way the issue of manpower is being consistently handled by the Department for so long. The Action Taken Note furnished in the instant case reflects the lackadaisical attitude of the Department in the matter. The Department has only informed the vacancy position status as well as the procedure of filling up them. Action on the Committee’s recommendation regarding review of manpower vis-à-vis the sanctioned strength of the Safdarjung Hospital and Vardhman Mahavir College as well as pre-emptive action in case of vacancies of Resident Doctors do not find any place in Department’s reply. The Department needs to make sincere efforts and indicate specific measures taken to address the issue of manpower which is crucial for better delivery of healthcare services by the Hospital which caters to lakhs of poor patients coming from different regions of the country.

7.53 The Committee is happy to note that possibility of land being available behind the Trauma Centre, AIIMS and the area adjacent to Incinerator Plant of Safdarjung Hospital for construction of residential quarters for nurses is there. The Committee would appreciate if this matter is pursued vigorously with the concerned authorities so that the nurses of Safdurjung Hospital have the required residential facilities.

7.54 The Committee has been monitoring the Re-development Plan of the Safdarjung Hospital since the outset and its observations and recommendations as contained in its 27th and 39th Reports are indicative of the fact that the Department is not addressing the bottlenecks in implementing the Re-development Plan. The present status furnished by the Department also apparently shows no forward movement in this regard. The Committee is constrained to observe that this is a classic case of procrastination. The Department had earlier set a timeline of six years for completion of the project. However, the Department’s reply that the proposal for the redevelopment is being further considered, entails further delay, which is indicative of a very sorry state of affairs. The Committee would like to reiterate that the Department needs to come up with a focused strategy in order to achieve the Re-development Plan in a time bound manner.

7.55 Expressing extreme disappointment over the persisting slow progress with regard to setting up of the Renal Transplantation Unit and IVF Unit, the Committee had called for a status note inter-alia containing details regarding the original timeline set, reasons for inordinate delay, resultant cost escalation and fresh timeline set with special efforts taken to meet the timeline this time. The Department’s Action Taken Note in this regard is evasive and silent on all the issues raised above. It merely points out unavailability of land as a reason for delay. To avoid basic issues of delay, it has further been stated that the Re-development Plan of the Institute would be able to address the space specific issue. With the Re-development Plan of the Institute itself heading nowhere at present, the Department’s response does not inspire much confidence towards achieving the target of setting up of the Renal Transplantation Unit and IVF Unit.

Dr. Ram Manohar Lohia Hospital, New Delhi

7.56 The Committee had categorically sought pointed reasons for supplying it with the figures showing mismatch w.r.t. the number of vacancies in the different cadre posts in the Dr. R. M. L. Hospital. The reply of the Department is conspicuously evasive on this issue. The Committee cautions the Department to be careful in supplying information as well as data properly in future.

All India Institute of Medical Sciences (AIIMS)

7.57 The Committee is deeply disturbed by the manner in which the Department is treating its top most Institute of the country, more so when there is no scarcity of earmarked funds for its developmental activities. The work and patient load of the Institute is increasing alarmingly day by day warranting urgent addition/strengthening of its existing infrastructure. There are projects duly approved by the Governing Body on 13th August, 2008, with EFCs submitted or to be submitted but work is yet to commence. Either procedural formalities are still remaining or there is a change in the location or Master Plan is yet to be approved. The Committee is very surprised to note that even very small works like additional lift in hospital, expansion of existing cafeteria in Eastern campus, construction of community centre are not proceeding further. Though setting up of a Planning & Monitoring Committee under the Chairpersonship of Secretary, Department of Health & Family Welfare is a welcome step but no concrete steps or strategy for putting things right on track in

128 the next two financial years, has been shared with the Committee. In such a scenario, the Committee can only hope that the Department takes some concrete steps to put the developmental agenda of the Institute back on track.

7.58 The Committee views with serious concern the Status Note on the various projects in AIIMS being handled by HSCC. Agreement for Redevelopment Plan Phase I and II with HSCC was signed on 25th March, 2009. It took almost one year for Phase I Plan being submitted to NDMC on 24th February, 2010. With regard to Phase II Plan, while proposal on Facilitation Block, New Block for Teaching Resources have been submitted to NDMC on 25th March, 2010 and 18th May, 2010 respectively, concept plan for Hostel Block is yet to be submitted to NDMC and for Block for Pediatrics and Gynecology is being revised by HSCC. The two remaining Plans, i.e., Block for General Surgery and New OPD Block are yet to be approved by AIIMS authorities. It would be almost two years since the signing of agreement by HSCC but paper work and formalities are yet to be completed. In such a scenario, the Committee apprehends that starting of real execution of work will take considerable time. The Committee, therefore, recommends that the Department in co-ordination with AIIMS and all the implementing agencies should carry out the implementation of these two ambitious projects in a time-bound manner.

7.59 Response of the Department about the proposal for setting up of a Burns Unit at AIIMS does not give much hope to the Committee. The Committee would once again reiterate that all efforts need to be made to revive the proposal and expedite the setting up of Burns Unit. It would go a long way in reducing the ever increasing patient load of burn victims on Safdurjung Hospital.

7.60 The Committee has been constantly monitoring the issue of vacancies in AIIMS, particularly the vacancies at the Faculty level posts, subsequent to the matter being brought before it in November 2008 by the Faculty Association of AIIMS through a representation. The Committee is aware that the matter of reservation has been amicably resolved by the Department after intervention of the PMO and setting up of a high level Committee in this regard. But the Committee is upset over the delay in implementing the final outcome as no forward movement seems to have been made since the Secretary, Health & Family Welfare’s presentation before the Committee during examination of Demands for Grants 2010-11 in March, 2010. The Committee, therefore, urges the Department to take up the issue of filling up of these Faculty level posts with a sense of urgency so that this issue gets sorted out without further loss of time. The Committee feels that now that the reservation roster has been prepared by the Consultant, the Department should vigorously pursue the matter with DoPT for prompt response.

7.61 As regards vacancies in other categories of posts, the Committee is aware that the patient load of the Institute is increasing day by day as the Institute caters to the needs of poor and needy patients from the remotest corners of the country in the absence of the quality tertiary healthcare there. The Department needs to not only fill up the existing vacancies urgently, but also needs to reassess its manpower requirements regularly. The Department’s response in this regard is silent on the issue of vacancies. The Committee would like to be apprised of the specific steps taken by the Department in this regard.

7.62 The Committee is very surprised by the response of the Department on a very pertinent issue. It is very strange that a premier Institute like AIIMS does not maintain any record about its passouts, that too in this era of high tech. connectivity. The Committee strongly feels that when an international organization like WHO can conduct an assessment in this regard, similar step can be easily initiated by AIIMS also. The Committee would like to be informed about the steps taken by the Department so as to evolve a mechanism/ procedure for utilizing the services of its students on completion of their studies.

Post Graduate Institute of Medical Education & Research (PGIMER), Chandigarh

7.63 The Committee would like to be apprised about the deadline set for the functioning of Advanced Trauma Centre Phase II.

7.64 The Committee notes that the process of filling up of the vacant posts at PGIMER has been initiated. The Committee would like to emphasize that this exercise should be completed at the earliest so that required strength of Faculty Members at the Institute are in place.

129 Central institute of Psychiatry, Kanke, Ranchi (CIP, Ranchi)

7.65 The Committee has been monitoring the status of the Premier Institute, the Central Institute of Psychiatry, particularly its developmental activities, subsequent to the same coming under the scrutiny of the Jharkhand High Court. Accordingly, in order to bring back the lost glory of the Premier Institute in the field of psychiatry, the Committee had called for a status note inter-alia covering the components of the plan, funds earmarked and spent, timeline set for completion thereof alongwith the progress made so far. The response of the Department is conspicuously silent on the crucial issues like timelines set and progress made so far. The Committee would urge the Department to play a proactive role and accomplish the various components of the redevelopment plan in a planned manner. The Committee may be apprised of the progress made in this regard.

Common Recommendations regarding Hospitals

7.66 Perturbed over the persistent delay caused in coordinating the procedural issues with various agencies of the Centre and the State Governments in respect of several developmental initiatives of the Department, the Committee had urged the Department to have a positive approach and accordingly mooted the idea of having a centralized cell under a dedicated senior officer to coordinate all such procedural issues with the various agencies in respect of all the government run hospitals of India. While making the above recommendation, the Committee’s only concern was that procedural delays should not be allowed to put a spanner in the works of developmental plans of hospitals and institutions. The Committee is in no way interested in suggesting the nitty- gritty of the monitoring framework, but would like to see the progress on the ground. However, the Committee is at a loss to understand the grounds of the Department’s reluctance in having a centralized cell for coordination and would like to be enlightened about it.

7.67 The Committee is dismayed at the manner in which the Department has attempted to skirt the issue of making an independent assessment of manpower requirement in health institutions. The Committee had heard the heads of many hospitals based in Delhi during its examination of Demands for Grants of the Department in March 2010 and one of the glaring problems put forth by them was that of the manpower crunch. The Committee is also aware of the fact that manpower requirements of almost all the hospitals has not been analyzed for many years inspite of the patient and workload increasing manifold, thereby warranting corresponding increase in staff strength. Accordingly, the Committee had urged upon the Department to have a dedicated officer assigned the task of taking care of the vacancies and workload specific issues at the central level and coordinate with the recruiting agencies as well. However, the Department has evaded an elaborate reply and merely made a generic statement regarding existing procedure w.r.t. the Safdarjung Hospital and Dr. RML Hospital. The Committee wonders as to what could be the reason for so many posts lying vacant for so many years inspite of constant holding of review meetings to address the pending issues including filling up of manpower w.r.t. these two hospitals. The Department needs to welcome fresh and innovative ideas to smoothen and facilitate processes rather than adopting an indifferent attitude.

Pradhan Mantri Swasthya Suraksha Yojna (PMSSY)

7.68 The Committee recommends to the Department to proactively take up the matter with the concerned State Governments of West Bengal and U.P. so as to achieve the setting up of the AIIMS like institutes there, within targeted timelines.

Development of Nursing Services

7.69 The Action Taken Note of the Department does not present a very encouraging picture w.r.t. upgradation of RAK College of Nursing into Centre of Excellence which has been pending since before the beginning of the Eleventh Plan. The Committee neither finds any forward movement on the issue, nor any commitment, from the Department in this regard. The Department’s efforts are limited to reviewing the matter with HSCC and the college authorities on a regular basis. Department’s initiatives to sort out the bottlenecks and specific problem areas are apparently lacking. Such a situation does not inspire any hope for early completion of the upgradation work. The Committee would recommend to the Department to take some concrete and decisive steps in this regard.

130

7.70 The Committee is happy to note that the Department has started consultations with the concerned hospitals to assess their demand and availability of residential accommodation for nurses. The Committee also appreciates Department’s willingness to take up the matter with the concerned hospitals to fill up the required number of nurses by outsourcing. But the Committee cautions the Department to be careful in this regard as outsourcing can never be a solution or substitute to regular employment. The Committee would like the Department to apprise the Committee regarding its outcome on the accommodation assessment exercise as well as the manpower outsourcing aspect.

National Mental Health Programme (NMHP)

7.71 The Committee hopes that with the Department claiming a “dedicated monitoring mechanism” as well as addressing the acute shortage of manpower in short term by “implementing manpower development schemes on mid to long term and use of trained manpower in the DMHP team”, things will move in the right direction and bring one of the most neglected National Programme back on track. The Committee would like to have the details of the “dedicated monitoring mechanism” and the details of addressing manpower shortage problem for this Programme, put into force by the Department.

7.72 The main objective of the Programme has been to ensure the availability and accessibility of minimum mental healthcare for those suffering with mental illness, particularly to the most vulnerable and underprivileged sections amongst them. The Department would be failing in its duty if it does not expand the Programme in a big way so as to reach the remotest corners of the country. The Department cannot shy away from this social responsibility. Funds for the Programme have been ceremoniously revised downwards at the RE stage owing to poor implementation status. Department’s reply that the EFC did not agree to its proposal for expansion of DMHP to 200 new districts in view of the paucity of funds does not sound logical. The Department appears to have not presented its case based on sound logic and facts or it might not have inspired confidence of actually being able to execute the expansion work based on its track-record. The Committee, therefore, recommends to the Department to focus on better utilization of the allocated funds and effective implementation of the Programme. The Committee is sanguine that more efficient use of the allocated funds would bolster the Department’s proposal for expansion of DMHP.

National Cancer Control Programme (NCCP)

7.73 Department’s response in the Action Taken Note is a mere acknowledgement of the failures on account of its exercise of revising the NCCP eating into most of the time during the 11th Plan period. Though the Committee acknowledges problems like withholding of grants to the institutes in accordance with the GFR guidelines, yet the same cannot be termed as the primary or sole reason for poor performance of the Programme. As pointed out earlier also, the fact that the Programme is still not having any approved scheme during the current Plan is proof enough of Department’s consistent neglect of this Programme. The Department needs to seriously review its implementation strategy which has been hampering implementation of such a crucial Programme of vital importance for so long and that too when there is no shortage of earmarked funds for this purpose.

7.74 The Committee has been voicing its concern over the implementation of the Programme since long and accordingly had advocated its evaluation in order to identify weak links and ensure effective implementation of its various components but no forward movement seems to have been made in this regard. The Committee is dismayed at the fact that even after two and a half years the Department is still in search of an agency to take up this task. The Department needs to take this in the right earnest and have the Programme scrutinised by a credible agency at the earliest.

National Tobacco Control Programme (NTCP)

7.75 Perturbed by the snail’s pace of implementation of the Programme, the Committee had commented that the Department has not moved beyond running the ambitious Programme as pilot project. Department’s candid admission that the EFC did not agree for expansion of NTCP to more districts during Eleventh Plan period is perhaps not a result of financial constraints but appears to be Department’s failure in expanding this

131 Programme in the desired manner. With the recent track record, the Department does not seem to achieve the target of implementing the programme in the remaining years of the Eleventh plan period in 42 Districts of 21 States within the NRHM framework from 2010-11. The Committee hopes that the Department gears up to the demanding task of expansion of the Programme in the remaining States. For this to happen, it has to achieve the targets beforehand first and then approach the EFC for necessary clearance for expansion.

7.76 The Committee had been critical of the manner in which various components of the Programme are allowed to linger on for several years. The Action Taken Note of the Department does not present a forward movement w.r.t. various components. Setting up of the National Tobacco Regulatory Authority is still in the pipeline with no progress at all. No noticeable improvement w.r.t. Setting up of Referral Labs for testing Tar and Nicotine contents has been made and there is every possibility that this target also would be carried forward in the next Plan period like setting up of the National Tobacco Regulatory Authority . Similarly, final report of the Global Adult Tobacco Survey (GATS) is still under preparation. With such dismal progress in respect of the various components, the Committee can only conclude that some inherent problems are still persisting and creating roadblocks in the smooth implementation of the Programme. The Committee would reiterate that the Department takes some concrete remedial action for achieving the various targets set under the Programme.

Medical Education

7.77 The Committee had called for a status note in respect of all the colleges inspected by the MCI during the last 5 years inter-alia containing — the selection procedure vide which the colleges were selected for inspection, the date of establishment of college, date of inspection(s), shortcomings noticed and action taken after such inspection. The Committee is dismayed at the fact that the required information is conspicuously missing in the Action Taken Note. The Committee would accordingly like the Department to furnish the requisite information at the earliest.

Vacancies in CHS Cadre

7.78 Status of vacancy position in CHS cadre has been engaging the attention of the Committee for considerable time. The Committee has been informed that the exercise of completing the recruitment process by UPSC takes about 15 months. The Committee is constrained to note that even this long-drawn exercise has failed to achieve the desired results. During 2009-10 against 186 Teaching Posts under CHS cadre 107 Posts were advertised by UPSC and only 22 candidates joined. Similarly, under Public Health, against 28 posts, 15 posts were advertised by UPSC and only 5 candidates joined. With regard to Non-teaching posts, against the availability of 90 posts, only 24 posts were advertised by UPSC and not even a single candidate joined. Position was no better for GDMO posts. Out of 300 vacancies reported to UPSC for CMSE-2008, 241 candidates were recommended for posting. Against 142 candidates offered posting in April-May, 2010, only 3 candidates have joined so far. The Committee is extremely unhappy with the progress made in filling up the vacant posts of CHS cadre. Prolonged process of recruitment is compounded by another disturbing trend of candidates finally selected not coming forward to join. This clearly shows that situation is bound to continue to remain very discouraging with the result that public at large as well as CGHS beneficiaries will continue to remain deprived of medical facilities. The Committee is of the view that the nodal Ministry has to play a pro-active role by taking up the issue with UPSC for expediting the recruitment process as well as analyzing the factors responsible for such a low level of joining by successful candidates.

New Initiatives/Programmes 7.79 Latest feedback on a number of initiatives and new programmes to be launched during the Eleventh Plan clearly indicates that all these proposed ventures are at the initial stage so far as completion of various formalities are concerned. Apprehensions made by the Committee last year about their progress stand confirmed. The Committee has no other option but to conclude that chances are very dim so far as launching of these programme during Twelfth Plan Period are concerned. The Committee, therefore, recommends that all these new programmes should be monitored vigorously for their initiation at the earliest.

132 Miscellaneous

7.80 The ‘National List of Essential Medicine’ intends to have some noble objective of ensuring abundant availability of drugs considered adequate to meet the common contemporary health needs of the general population in the country. The Committee is happy to note that the same is under consideration of the Department. The Committee recommends early consideration and clearance of the same by the Department. The Department’s reply is, however, silent on the time gap for such exercise. If such a time lag has not been decided for this exercise of updation of the List, the Committee would recommend to the Department to work out in-principle time lag for mandatory updation of the List in future. The Committee may be informed about the progress made in this regard. 7.81 The Committee recommends to the Department to initiate suitable action to amend the Drugs and Cosmetics Act & Rules so that generic medicines are not allowed to be sold as branded medicines for the sake of profiteering. The Committee would also recommend to the Department to ensure availability of generic medicines in the open market. The Committee would like to be informed about the action taken by the Department in this regard.

(NRHM)

Budgetary Provisions

7.82 The Committee is disappointed to note that instead of apprising it of a specific action plan to check the under-utilisation of funds, the Department has made a generic statement that all out efforts are being made to increase the absorptive capacity of States where the utilization is less than the allocation. The Committee, therefore, suggests that the Department should assess the reasons for its failure in monitoring the funds utilisation under these programmes and devise means to remove the loopholes, to ensure optimum utilization of funds.

Infrastucture Strengthening

7.83 The Committee notes that as per the figures shown by the Department, there seems to be no significant increase in healthcare infrastructure and the numbers of personnel within a span of 5 years. As per the information furnished above, between 2005 and 2009, the net increase in the number of sub-centre is 352 only. The number of PHCs functioning from Government buildings has increased by 4213 only. The number of Pharmacists posted at PHC/CHCs by 3295 and Radiographers at CHCs by 549 only. Committee’s specific observation about acute shortage of specialists required to be posted at CHCs has elicited no response from the Department. The Committee observes that if the present requirements and the personnel posted are matched up to the in-position figures, the deficiencies would be even more glaring. The Committee takes due cognition of the fact that creating a brigade of healthcare personnel is no doubt a time taking process, but it observes that 5 years’ time is sufficient to bring about a visible change in their numbers. The Committee suggests that Mission Directors should be impressed upon to take up with the States on urgent basis the issue of recruitment and posting of personnel as well as bridging the shortfall in infrastructure to meet the targets set up under NRHM within a reasonable time frame. The Committee would like to be kept apprised of the specific steps taken by the Department to overcome the shortage of health functionaries, and for strengthening the infrastructure.

Mission Flexible Pool

7.84 The Committee observes that upgradation of CHCs to Indian Public Health Standards is an important intervention under NRHM, designed to provide assured quality health services to the people. Upgradation work of CHCs in States/ UTs like Bihar, Chhattisgarh, Jharkhand, Himachal Pradesh, Andhra Pradesh, D&N Haveli, Chandigarh, Lakshadweep and Delhi were yet to be started at the beginning of the year. However, the Department has not furnished any information as to why such an important initiative has been set on the backfoot. The Committee feels that the reply given by the Department is generic in nature and gives no idea of the specific and concrete action being taken or contemplated to be taken to meet the target of upgradation of CHCs to IPHS. With only two years of the Mission period being left, the action plan regarding accreditation of the CHCs should have been started earlier. The Committee, therefore, urges upon the Department to indicate the

133 specific efforts made by it to speed up the pace of upgradation of physical infrastructure. The Committee observes that the Department should abandon the lackadaisical attitude in the matter and come up with a specific plan to get the CHCs accredited at the earliest and urges the Department to come up with a more elaborate reply in the matter.

7.85 The Committee is not happy with the vague and evasive reply given by the Department to its specific observations/recommendations pertaining to the most crucial functionary of NRHM. The Committee would like to be apprised of the action initiated by the Department on its specific suggestion to provide ASHA as remuneration a minimum amount per month as allowance as was recommended by the Mission Steering Group. The Committee would like to be apprised of the findings of the National Health System Resource Centre (NHSRC) Report at the earliest.

7.86 The Committee notes that this is a classic case of the fact that wisdom dawns on hindsight. The Committee observes that after so much of funds have been infused into a healthcare initiative, the assets so created by allocating scarce resources seems to be lying idle and unused in so many of the States across the country. The Committee observes that if the Department had acted with prudence and foresight, then such a waste of money could have been avoided. The Department has not informed the Committee the actual number of MMUs functional across the country and as to whether how many NGOs/Charitable Hospitals have expressed interest to operationalise the MMUs. The Committee would like the Department to inform it about the latest status in this regard while examining Demands for Grants of the forthcoming year. The Committee would also like to be enlightened as to whether any proposal has been firmed up for providing more MMUs in the inaccessible districts of the country.

RCH Flexible Pool

7.87 The Committee is surprised by the response of the Department to the concern shown by it on non- availability of cold chain equipment as pointed out in the CAG Report. The Committee doubts whether any follow-up action has been initiated by the Department on the findings of CAG Report. The Committee would appreciate if the list of 124 PHCs inspected by CAG is obtained from it without any further delay and corrective measures are taken accordingly.

7.88 The Committee takes due cognition of the efforts cited by the Department for promoting institutional deliveries. However, what draws the Committee’s attention is the fact that the Department has been silent about the shortcomings pointed out by the CAG in its Performance Audit of the NRHM (2009-10). Inspite of the above interventions and monitoring mechanisms if the loopholes pointed out by CAG persist then the objective of such an important intervention like Janani Suraksha Yojana to reduce MMR in the country would stand diluted. Involvement of Voluntary Organisations/NGOs working in the field of maternal health should be sought to track the number of beneficiaries opting for institutional delivery and the number of beneficiaries under this programme. Even audit of records of payments to the beneficiaries should be handed over to the independent agency to bring forth greater financial accountability into the programme. In order to increase institutional deliveries the Department should first identify the district in a State with very high MMR and thereafter, should carry out a campaign to track down pregnant women in the area and counsel and persuade them to avail the benefits of the programme. This would be a beginning which can be replicated in other areas/districts/states by giving credibility to the service guarantees envisaged to be provided to the needy pregnant women under the programme and the resultant outcome, i.e., reduction in the MMR.

7.89 The Committee observes that the Evaluation Study of JSY being conducted by the National Health Systems Resource Centre is yet to start as only required formalities have been completed so far. The Committee would like to emphasize that this Evaluation Study needs to be completed at the earliest so that problem areas can be identified and corrective action taken accordingly.

National Vector Borne Disease Control Programme (NVBDCP)

7.90 The Committee notes that though the Department has identified three clear reasons for reduced utilization of the allocated fund under this head, its reply lacks clarity inasmuch as it fails to indicate substantive

134 measures taken to overcome the problem. The Committee would, however, like to be apprised about the outcome of the remedial action taken by it to address this issue.

7.91 Another pressing issue that the Committee would like to place on record is that since most of the tribal areas are highly endemic with Malaria, the outreach of effective door to door surveillance services needs to be strengthened and carried out diligently. In order to ensure this, the Committee recommends that the Department devise a mechanism to carry out a monthly review of the surveillance carried out at the district level and to visit specific tribal pockets in order to gain first-hand information of the ground realities.

Kala-Azar

7.92 Kala-azar had remained a serious problem for the country for quite some time. The Department has replied in its ATN that no NGO/ FBO/ PRI is involved in Kala-azar elimination activities. The Committee feels that the proper incentives, support and counseling to the above entities would guarantee their involvement in the elimination of the Kala-azar. The Committee fully agrees that for undertaking extensive search from house to house, a large number of persons are required. Hence, it suggests that the PRIs could be used to be an effective mechanism of augmenting manpower for door to door searching and case detection. Hence, the Department should devise means of involving PRIs in Kala-azar elimination activities. The Committee suggests that the Department should also explore possibility of involving/ contracting out such activities to the private entities. The Committee hopes that the Kala-azar rounds must have been carried out during 2010. The Committee would like to be apprised about the latest status in this regard.

Japanese Encephalitis

7.93 The Committee is not convinced by the Department’s reply that apart from Adilabad district in Andhra Pradesh and two districts of Goa and West Bengal each, the vaccination coverage has been satisfactory. The Committee observes that in three out of four districts (i.e. Latur-27.61%, Gadchiroli-11.85%, Washim-52.61%) in the state of Maharashtra and even in the districts of Krishna, Nellore and Medak of Andhra Pradesh the coverage has been far from satisfactory. As a result thereof overall 37% of children targeted in AP and 31% children in Maharashtra could be vaccinated in the districts given in Annexure-XIII. Even in the State capital of Trivandrum in Kerala the coverage was only 40%. The Committee feels that the district programme officers had perhaps failed to grasp the guidelines of the Centre in regard to this disease. The Committee observes that the reasons for such a communication gap should be ascertained by the Department and appropriate measures be taken to avoid such instances in future. The Committee would like to be apprised about the latest coverage status for all the 30 districts where the vaccination was carried out and whether a follow-up round has been carried out by the Centre to determine the actual coverage of the targeted beneficiaries.

National Leprosy Eradication Programme 7.94 The Committee is astonished by the Department’s reply that it plans to review the matter of under- utilization of funds in an emphatic manner with the State Programme Officers during quarterly and annual NLEP review meetings. From the above statement of the Department, it is clear that there are no proper mechanisms in place to monitor the funds utilization under this programme. The Committee would like to state that unless proper monitoring of the programme is done, such lapses would continue and with only two years of the Mission period remaining such a trend does not augur well for the health of the programme. Hence it exhorts the Department to roll-out financial monitoring of the various schemes under the Programme so that the creases are ironed out from the beginning. National Trachoma and Blindness Control Programme 7.95 The Committee observes that to ensure utilization of funds allocated for the earmarked activities, it is essential that the remedial measures identified during an assessment of a programme be implemented at the earliest so that initiatives can be brought back on to the track. The Committee finds that the Department has only passed instructions to the States for better financial management and the fact that it has not pursued the matter further is evident from its reply. The Committee suggests that with a number of important entities like Chartered Accountant, MBAs etc. finding place under the NRHM, the State Programme Management Units should be persuaded to execute the remedial measures so that the targets under such an important programme 135 are achieved within a reasonable time-frame. The Committee, therefore, suggests the Department to get the feedback from the States and formulate further remedial measures if the progress is below par.

7.96 The Committee feels that merely issuing routine instructions to the States to ensure standards of Eye Banking to improve utilization of collected eyes is unlikely to bear fruit. The Committee would expect the Department to devise innovative means and methods to objectively assess the progress and analyse in detail the reasons for the shortfall for formulating appropriate remedial measures.

National Iodine Deficiency Disorders Control Programme

7.97 On perusal of the above mentioned Annexure, the Committee is perturbed to find that out of the districts surveyed for iodine deficiency, a large number were found endemic. The Committee would like the Department to chalk out an action plan to deal with the situation and apprise the Committee about its outcome.

(e) 52nd Report

Integrated Vaccine Complex, Chengalpattu

7.98 The Committee is happy to note that the Department has given a categorical assurance on making the three PSUs GMP compliant within a period of three years for which revamping of the existing production facilities at each location is in progress. However, the Committee notes that the Department’s reply is silent about the Committee’s recommendation regarding reviewing the requirement of the proposed Integrated Vaccine Complex. In the light of the new developments regarding making the three PSUs GMP compliant, the Committee would like to reiterate its recommendation made in Para 2.9 of the 43rd Report, as quoted above, that the Department undertake a review of the requirement of the proposed Integrated Vaccine Complex.

Central Research Institute, Kasauli

7.99 The Committee is deeply disturbed by the sheer inaction on the part of the Department in taking appropriate steps against M/s HSCC, Noida for its failure to build a GMP compliant structure at CRI, Kasauli. Although four years have elapsed since M/s HSCC had expressed its inability to complete the structure in December, 2006, yet the only tangible step taken so far by the Ministry against the agency for breach of agreement has been the issuance of a show-cause notice on 16th November, 2009, - about which the Ministry had informed the Committee way back in November 2009. Though more than a year has passed by since then, the Department has failed to come up with a worthy reply in the matter. The Committee calls into question the approach adopted by the Department in the matter and observes that in this context it puts the governance in very poor light. It observes that if the punitive process in the Ministry moves at such a tardy pace then the Department is offering no checks on repetition of instances of such nature in future. The Department has not informed about the timelines by when the officers were issued show-cause notices and the replies of the officers and HSCC received thereto. The Committee is also unaware as to what amount of time would be required for considering the further course of action and what degree and magnitude of action is proposed. The Committee notes that it is high time that the Department has put the matter on a fast-track mode and set a deadline for taking action in a time-bound manner so that the issue doesn't get engulfed in the Labyrinths of red-tape. The Committee desires to be kept apprised of the final action taken in the matter.

7.100 The Committee is happy to note that the revival of the vaccine manufacturing unit is underway and that production of the vaccines in the existing facility has also started at the Institute. The Department has informed that M/s HLL LCL has informed the former that commissioning and validation of the equipments would be finished by the Mid-May, 2011 and commercial production can be started from June, 2011. From the reply stated above by the Department it is unclear as to whether a mechanism is in place to assess the progress of work being carried out. Keeping in view the bitter past experience of the aborted execution of the GMP- compliant project by HSCC, the Committee feels that strict monitoring of the progress of the work underway at all the three Institutes needs to be made by the Department to avoid unnecessary delays and addressing the bottlenecks in achieving the targets within the set timelines. The Committee would like to be apprised about the timelines set for completing GMP-compliant structures at all the three Institutes and the progress made in this regard on a quarterly basis till the projects are completed and also the details of the monitoring mechanism put in place for the projects by the Ministry.

136 7.101 The Committee observes that the main reason for delays in getting sanction for filling up of posts owes to the fact that till date all administrative powers relating CRI Kasauli have remained concentrated with the office of the DGHS under the Ministry. The Committee notes that with the existing workload of the office of DGHS, it would take some length of time before any pressing matter regarding these Institutes get noticed by the administrative office at New Delhi. To substantiate, the Committee would like to state here that the Department has informed in its reply that at CRI Kasauli, of 98 staff required, 56 personnel are already available and 42 personnel are yet to be appointed. Out of 42 personnel required to be appointed, 33 personnel are to be appointed against vacant positions in CRI, Kasauli and 9 posts which are not on the strength of CRI, Kasauli are required to be created and filled up. The Department has informed further that the matter concerning the filling up of the vacant posts was approved in the meeting held on 6th July, 2010. Though six months have elapsed since then yet no tangible progress in the matter seems to be visible. This is also the case with respect to BCGVL Guindy and PII, Coonoor, from where no proposal has been received for filling up of the posts so far. The Committee observes that this concern was foremost in its mind while offering the above-cited comments in its 34th Report. The Committee stands by the same view today.

7.102 It is pertinent to state here that the above view of the Committee stands fortified by the following observation/ recommendation made in the Final Report of the Javid Chowdhury Committee:

“8.1 The Committee has observed that one crucial underlying cause for the malfunctioning of the manufacturing Units is the unsuitable organizational structure they are frozen in. Because of a historical handicap, the public sector vaccine/sera units have an organizational structure that belongs to a past age – CRI, Kasauli and BCGVL, Guindy are still departmental undertakings; while PII, Coonoor is a registered society. The committee is unable to understand what purpose is served in this day and age by keeping CRI Kasauli and BCGVL Guindy as departmental undertakings. These two undertakings are narrow-bound, high-tech units. Most officials and technical staff have specialist skills only in the line of manufacture of the limited items produced there. Not many of them can be interchanged even within the three units under review here. It is near impossible to find an official in the Directorate who could assist a manufacturing unit in a technical problem relating to the manufacture of vaccine/sera. …….. …..The Committee would suggest that these units be made autonomous at the earliest, by registering them as a non-profit company under Section 25 of the Companies Act, 1956 or under the Societies Registration Act, 1860. …….. ………To sum up, the Committee is of the considered view that the units working as attached offices to Directorate – CRI Kasauli and BCGVL Guindy – are completely hamstrung. It therefore recommends that the Ministry consider making them autonomous by registering them independently under the Companies Act/ Societies Registration Act. The Committee suggests that this should be done on priority basis with adequate financial powers delegated to the management.”

7.103 The Committee is in broad agreement with the above recommendation of the Javid Chowdhury Committee. The Committee fears that unless autonomy is conferred upon these Institutes, given the present state of functioning of the Directorate, a situation similar to that of CRI Kasauli would resurface in the coming years. The Committee, hence, recommends that the Ministry confer autonomy on CRI Kasauli and BCGVL Guindy at the earliest.

Procurement Price of Vaccines

7.104 The Committee notes that the Ministry has finally acknowledged the drastic rise in cost of vaccines in 2009-10. The Committee would like to state here that in its 38th Report, it had pointed out to the unacceptably drastic increase in the procurement rates of BCG, DPT and TT Vaccines in 2009-10. It escapes the Committee’s comprehension as to why the entities concerned did not take recourse to a reasoned analysis of these factors before suspending the licenses of the three PSUs in the name of non-compliance of GMP norms. That there are gaping holes in the CLAA’s interpretation of the rules governing implementation of GMP norms by the three PSUs are exposed in the Javid Chowdhury Report, which makes the Department’s decision all the more

137 untenable. The Committee feels that the least the Department should have done is to play a pro-active role in stabilizing the prices of vaccines in view of the fact that the vaccines, required under the Universal Immunisation Programme, fall under essential category. Here the Committee would like to quote a very telling comment made by the Javid Chowdhury Committee : “Para 5.1 ….. To insulate the UIP from price and supply shocks, a cardinal principle of public health policy requires the sourcing of the vaccines from public sector manufacturing units to a substantial extent.”

7.105 Now that the vaccine-producing PSUs have begun production, the Committee recommends that a reasonable estimate of the cost of these vaccines be made and their prices be brought down from the rates at which at which they have been procured during 2010-11, so that the economically weaker and marginalized people are not put through further hardships. The Committee also views with concern the considerable gap in the quantum of orders for different vaccines placed with public sector units vis-à-vis private manufacturers in 2010-11. This crucial aspect also needs to be given the required attention while placing the orders for 2011-12.

General Observations

7.106 One of the major reasons which had been offered by the Department for shutting down the three public-sector vaccine-producing PSUs was the issue of de-recognition of NRA by WHO. The Committee, during the course of its examination of the closure of the vaccine-producing PSUs, was given the impression on more than one occasion that if the National Regulatory Authority, who is the Drug Controller General of India, adopts dual standard of imposing certain GMP norms on private sector but having completely non- compliant public sector, he would stand being de-recognized by the World Health Organisation (WHO) which is the main agency for getting the country’s exports to the other countries. Consequently, this would render the private sector vaccine producing units ineligible for listing on the WHO’s pre-qualified vendor list. However, it was the considered view of the Committee at that time that in the name of exports, GMP compliance and new technology, the entire vaccine market cannot be handed over to the private sector and thereby push the nation towards an impending danger of vaccine insecurity. The Committee was of the view that such an approach by WHO would tantamount to interferences in the sovereign functioning of India — a fact unacceptable by any standards. The Javid Chowdhury Committee, which examined the issue in greater detail, held similar views. Some of its comments relevant to the context of the present discussion are placed below:

Para 1.4 In the year 2001 and 2004 inspection was carried out exclusively by Indian Inspectors authorized by the DCGI. In the year 2001, WHO had asked to be associated with the inspection, but permission, was explicitly denied by the Indian Government. The position then taken by the Ministry of Health and Family Welfare was that in the course of the inspection, the NRA is discharging a sovereign function in which an international agency cannot become a partner. In year 2004 the WHO was not associated with the inspection. However, in 2007, the WHO asked to the associated and the Ministry agreed to the request with the approval of HFM.

Para 3.3 …..The Committee notes that the DCGI’s proposal did not give any reason for departing from the earlier decision taken by the government in year 2002 to not permit WHO to join the NRA Inspection. ……

Para 4.3 …….. Repeatedly, emphasis has been focused on the line that, if the NRA is derecognized, the private manufacturers will be treated as ineligible for WHO pre- qualification as vendors. The risk or damage to public interest resulting from closure of the public sector units has never been considered: though, on a few occasions mention has been made that steps will have to be taken to secure alternate sources of supplies for vaccines. In sum, it is the view of the Committee that the Ministry (including the DGHS and the DCGI) did not carry out an appropriately structured analysis of the sensitive issue under review. The discharge of the responsibility of due diligence by the Ministry required that the various facets of the issue be discussed in a simple structured manner so that pros and cons were transparent. The Committee is of the

138 considered view that had this been done, the Ministry would not have come to a decision to close the units in an abrupt manner.

Para 4.4.1.2 ………the advice/information offered by WHO- about improvement in product standards and technical processes, advancement in treatment regimen and new diagnostics – is of immense value. However, in order to maintain a harmonious working relationship, it is important to accurately demarcate the boundary between the reach of WHO’s advocacy and the irreducible extent of exercise of sovereign authority by the Indian Government. It is known that the WHO has been offering technical advice to the Ministry of Health and Family Welfare on GMP- related issues. However, no matter how useful WHO’s advice may be, the NRA’s sovereign function under statute, of inspecting the manufacturing standards of drugs and pharmaceutical units, cannot be discharged in partnership with an international organisation. Under the Drugs and Cosmetics Act and Rules, the DCGI is an apex point of the Indian Regulatory System. This was the position taken by the Government in year 2002 when it denied WHO the permission to conduct inspections jointly with the NRA………..It is seen that the decision taken by HFM on 10-05-07, to permit WHO inspectors to be associated with the NRA inspection, is on an opaque note stating that Secretary (HFW) has opined that we should not object to the participation of WHO representatives in the NRA inspection. The note does mention that in the past the Ministry had not agreed to this request of WHO. However, there is no analytical discussion as to why we should reverse the earlier position of the government.

Para 4.4.1.3 …….……….However, the assertion which seems to have been made by WHO- that if WHO was not permitted to inspect public sector manufacturing units (even if these had no intention of applying for WHO’s pre-qualified vendor’s list), this would result in the de-recognition of the Indian NRA, and would consequently render the private vaccine units ineligible for listing on WHO’s pre-qualified vendor list – seems to be an arbitrary conclusion. On the basis of what has been mentioned earlier, it is apparent to the Committee that WHO does not exercise any supervisory authority over the Indian NRA. Hence the question of de-recognition of the Indian NRA cannot arise. WHO would naturally be entitled to make an independent assessment of the level of GMP compliance of those manufacturing units that apply for pre-qualified vendor-listing with WHO. Needless to say, the NRA in India can take a differing view on the status of compliance for the very same units for its own purpose. …………Treating the eligibility of individual applicants as contingent upon public sector units meeting eligibility standards, would clearly be arbitrary. Incidentally, it may be mentioned that after the view expressed in the above paragraph had been incorporated in the Interim Report, the issue of de-recognition of the NRA by WHO seems to have been dropped, and the Indian suppliers of vaccines to international agencies have suffered no disadvantage.

Para 4.4.1.4 The Committee is of the considered view that there is considerable confusion in the dialogue between the Ministry and the WHO on the issue relating to the GMP standards required to be achieved by public sector vaccine units. The WHO has not set out its position/explicitly in writing at any time. The only mention of their position is in passing notes of different Indian officials. These Notes mention that WHO has been insisting that if India does not permit the inspection of public-sector manufacturing units, WHO will de-recognise the Indian NRA. Also, that if the Indian NRA is de-recognised, no unit, including private units that otherwise are compliant with the WHO GMP norms, will be eligible for listing as WHO’s pre-qualified vendors. The only communication on record on this subject is a letter dt. 17-5-06 addressed to HFM from the Additional Director General, WHO. This letter doesn’t state that WHO will de-recognise the Indian NRA if it is not allowed to inspect the public sector manufacturing units, or, if in their assessment the public sector

139 manufacturing units are seen to be non-compliant with WHO GMP norms. Clearly, the context of this letter only relates to the requirements of eligibility for pre-qualified listings as vendors for purchases relating to international programmes. The letter however, does assert the view of the WHO, that India has followed dual GMP standards, for vaccines, with comparatively weak enforcement of GMP for public sector units. By way of a caution, the letter does say that there may be a major negative impact should the NRA assessment fail to meet the critical indicators required for the WHO pre-qualification scheme. The Committee is of the considered view that as a matter of administrative practice, in the normal course, the Ministry should have obtained the position of the WHO on this sensitive issue in explicit terms in writing. It is considered to be imprudent for the Ministry to arrive at a decision on this important issue merely on the basis of impressions and conjecture of some officials in the Indian administration.

Para 4.4.1.5…..………While no one disagreed with this line of action, the suggestion was never pursued. The Committee had also recommended in its Interim Report that the Ministry may consider taking up the issue with the DG, WHO, as the differences appeared to be on account of a misunderstanding between the Ministry of Health and Family Welfare and the WHO. While four of the Committee’s recommendations made in the Interim Report have been accepted by the government and implemented, this particular recommendation does not seem to have caught the attention of the Ministry. Even at the cost of repetition, the Committee would again suggest that the Ministry may consider entering into a candid dialogue with the DG of the WHO so that the country’s position is clearly understood by the WHO, and no unnecessary misunderstanding persists between the two.

4.4.1.7 Despite having arrived at the above position on the question of de- recognition, the Committee considers it necessary to address the worst-case scenario one in which, at some distant date when even those Indian manufacturers that are compliant with WHO-level GMP norms, are not included in the pre-qualified list of vendors. India has been a growing exporter of drugs/vaccines under internationally- funded relief programmes. Exports of drugs and vaccines from the country under such programme are of a value of about Rs. 500 crores annually i.e. US$ 0.1 billion. Even if we hypothetically assume that these exports run the risk of being discontinued, the impact will be nominal, as the values of these exports is miniscule compared to the aggregate national export earnings of about US 180 billion annually. In the perception of the Committee, the export earnings foregone, if such an eventuality arises, would be insignificant compared to the gain through enhanced vaccine security for the country over the long run.

7.107 From the excerpts above, it is abundantly clear that the case for suspension of the licenses of the three public-sectors vaccine-producing PSUs, inter alia, rested on a major misconception and misinterpretation of certain unclear signals passed through the communication from the office of the WHO. A prudent step that was blatantly missed by the Ministry was to determine at the outset the exact position in this regard from the WHO. What is astonishing is the fact that it was not considered to be clarified later although the matter surfaced time and again (precisely five times in the notes at various levels in the Ministry). The Ministry’s decision to recommend the closure of the three public-sectors vaccine-producing PSUs was not only myopic but also exposed the nation to an unacceptable risk in vaccine security, as several states reeled under vaccine shortages. As has been discussed in the earlier Reports of the Committee, in the absence of supply of vaccines from the public sector, the cost of vaccines in the domestic market appreciated by 50-70 percent within a span of two years from the closure of the three public-sectors vaccine-producing PSUs.

7.108 The Committee observes that it is high time that the role and locus standi of the NRA vis-a-vis the WHO are made clear. In the absence of any clear-cut boundary in the matter, it is left to the subjective interpretation of the officials at the helm of affairs at any point of time. In the view of the Committee, such a precarious situation leaves ample scope for cases like that of the three public-sector vaccine-producing PSUs to

140 re-surface in future. Hence, it strongly recommends that the Ministry, which is the prime intermediary between the WHO and the NRA, should take up the matter with the WHO and clarify the position at the earliest. The Committee would like to be apprised about the progress made by the Ministry in this regard.

7.109 The other point on which the Committee would like to focus on is the issue of the Department’s treatment of the compliance of GMP norms by three vaccine-producing PSUs. From the outset, the Department, while justifying its decision to suspend the manufacturing licenses of the PSUs, has offered that they had failed to comply with the GMP norms specified under the Drugs & Cosmetics Act and Rules made thereunder. However, in the wake of the fact that the vaccines produced by the PSUs conformed to the standards of safety, efficacy and quality, — a fact which was admitted by the then Secretary during the course of her deposition before the Committee on 26th October, 2009, — the Committee has been stressing in its 34th, 38th and 43rd Reports that the decision of the Department to close these PSUs on the grounds of non-compliance lacked justification. The Committee is, therefore, perturbed to note that the Department, instead of admitting the fallacy of the decision taken by them earlier, continues to harp on the lack of compliance of GMP norms by the three PSUs in its latest ATN also. The Committee would like to state here that its observations regarding the Department’s unfounded decision to close the three PSUs has been upheld by similar findings of the Javid Chowdhury Committee which has demolished the very grounds on which the Department’s decision in this regard was based upon. The Committee would like to quote the following specific comments from the Final Report of the Javid Chowdhury Committee: —

4.4.2.2 The extant national GMP standards for drug/vaccine manufacture are largely identical to the cGMP standards recommended by the WHO. The standards, inter-alia applicable to vaccine/sera manufacturing units are set out in Part I and Part IA of Schedule M of the D&C Rules. A perusal of this Schedule reveals that it covers a vast array of specifications that collectively impact on the quality of the manufacturing process. By their very number, nature and span of application, all these standards cannot be met to the fullest extent by every manufacturing facility. …….. ………. Also, legal compliance does not require that each of the norms be individually met to the fullest extent, but rather that, the overall compliance of the various norms, should be adequate. A shortcoming in some of the non-essential/ minor areas – need for re-configuration of production line; need for smooth surfaces and dust-free junctions, corners and door-frames; defects in the animal house; need for amendment of SOPs and new documentation; calibration of equipment—does not automatically call for suspension/ cancellation of the license………..

4.4.2.3………All three units have what can be called an unmatched corpus of experience in the area of manufacture of vaccine/sera. Here it may be mentioned that manufacture of vaccine/sera is not only an application of technology/science but it is also a quasi-art. The technical man-power in these units over time has acquired what can be called a unique experience in this line of activity. The private sector manufactures of vaccine/sera in the country are relatively recent entrants and the experience they draw upon is largely through the technical staff of public sector units who are either retires, or have been poached from public sector units. The vaccine/sera supplied by the public sector manufacturers rigorously meet product standards notified under the D & C Act and Rules—these units have had an unblemished production record.

4.4.2.11 At this stage, the Committee would like to set-out its understanding of the key phrase of the GMP, which constitutes the overarching objective; to design the work area ‘to allow the production preferably in uni-flow and with logical sequence of operation’. In the view of the Committee, the key word in the provision is ‘preferably’. Quite obviously this word was used to imply that the principle of logical sequence of operations would be enforced to the extent it is possible to optimize the working, in the circumstances in which the manufacturing units operate………The rate of progressive tightening of the compliance to the GMP norms would be judged by the NRA in the totality of the circumstances. The facilities existing at the time of suspension of operations were designed in an age when the idea encapsulated in the phrase quoted at 141 the start of the paragraph was non-existent. However, within the given space/ plot constraints at the three locations, it was noted by the Committee that much has been achieved by way of rationalization of the flow of men and material in the manufacturing process. In fact, in all the units, within each section of the manufacturing process…. The lay out and the manufacturing sequence has been optimized. It can safely be claimed that within each section of the manufacturing line, production ‘in uni-flow and with logical sequence of operations’ has been achieved………..To achieve the ultimate optimization through the entire process line, a new production line will have to be established by incorporating the essential technical features in the original design. ………

4.4.2.12 ……..The standards set out in Schedule M of the Rules do not require that all the specifications be met in the most rigorous interpretation of the norms. The Committee (which includes two technical members having expertise in the product/ manufacturing standards of drugs and pharmaceuticals) was of the considered view that it would be safe and in public interest, to restart the manufacturing activities in the existing production lines with immediate effect. More explicitly, it was the considered view of the Committee that, the operation of the units would, in the totality of the prevailing circumstances be in compliance with the GMP standards.

7.110 The Committee notes that in view of the meticulous analysis and erudite comments of the Javid Chowdhury Committee in the matter no purpose will be served by stating over and above what has already been set forth in the preceding paras. The Committee would only expect the Department to exercise greater caution and prudence while handling such issues in future and start taking remedial measures in right earnest.

7.111 The Committee feels that at this juncture, it would be well within the context to place below certain pertinent findings from the Final Report of the Javid Chowdhury Committee:

Para 3.15 When reviewing the recent history of the three public sector vaccine manufacturing units, one aspect is eye-catching — that these units have received an exceptional degree of attention from the regulatory authorities. Over the years, the units have been inspected by the state and central drug control authorities time and again (BCG, Guindy (5/2001 to 2/2008) – 10 inspections; PII, Coonoor (10/99 to 3/2008) – 9 inspections; and CRI, Kasauli (9/2002 to 1/2008) – 5 inspections). The NRA has itself inspected the units in 2001, 2004 and 2007. While diligence in the regulatory duties is something which should be commended, it must not take the shape where it is perceived that these units are particularly targeted. There are over 10,000 drugs and vaccine/sera units in the country. Out of which all but 350 are in the small-scale sector. DCGI has 40 drug inspectors under him who carry out statutory inspections on his behalf. The number of inspections carried out by the central drug inspectors in different years is as under:

Inspections carried out by Central Drug Inspectors

Year Number of Inspections 2004-05 1163 2005-06 847 2006-07 775 2007-08 889 2008-09 764

Para 3.16 Under the law, the DCGI (CLAA) has jurisdiction over all drugs and pharmaceutical manufacturing units in the country, including those categories for which the registration powers are with the State Government. However, the DCGI has informed the Committee that the central inspectors are carrying out inspections of only certain categories of items- Vaccines & Sera. Large volume parenterals, notified medical devices, blood banks and units applying for certificate of pharmaceutical products under

142 WHO GMP Certification Scheme. The Committee is surprised to note the role allotted to itself by the DCGI. Though it has a supervisory responsibility over the entire range of drug manufacturing units, it has withdrawn itself from the inspection of the drug units, except on request. Considering that it has jurisdiction over 10,000 manufacturing units, the above table reveals that a paltry number of manufacturing units were inspected. Given that in year 2007-08, the year in which the licenses of the pubic vaccine units were suspended, the central inspectors only carried out 889 inspections, it is remarkable that the regulatory authority found it possible to spare so much attention for the three public sector vaccine manufacturing units.

Para 4.4.3.2 ………. it will be seen that the crunch-decision taken by the DCGI, was accepted at the highest levels in both the political and bureaucratic executive line-up of the Ministry. Responsibility for the flawed advice given to the DCGI would substantially rest at those two levels – HFM and Secretary (HFW).

Para 4.4.3.4 The Committee is surprised to note the procedure adopted by the DCGI after the receipt of the representations in response to the show-cause notices. The action of the DCGI in ordering the suspension of the licenses without even going through a ritual of considering the representation, and the subsequent inspection report, is plainly illegal. ……

Para 4.4.3.5 ……With disappointment, the Committee is constrained to note that at no level was the duty – of ensuring a rigorous and objective analysis — discharged with the necessary diligence. In fact, evidence on record indicates that, in the midst of the administrative process, the decision was being treated as pre-judged.

Para 4.4.3.6 …………… In defending the closure of the manufacturing units, the HFM (who had met the Committee on 13-05-10) had mentioned that during his period a large number of units had been closed down in the country for non-compliance with the GMP standards. For verifying this, the DCGI’s office was asked to provide information on the number of units whose license was suspended/cancelled in the last five years for non-compliance with the GMP standards. Despite several reminders, and despite the caution that failure to furnish the information would only be construed as deliberate to avoid embarrassing facts, these figures have not been furnished to the Committee. The general impression of the knowledgeable officials in the Ministry is that this number would be very small, if not nil. Thus, the former-HFM’s impression about large-scale cancellation of licenses during his period in office is mistaken.

7.112 A startling information has been recorded by the Javid Chowdhury Committee in it’s Final Report that repudiates all claims of the Department that due procedure was followed by the Ministry before the cancellation of the licences of the three vaccine-producing PSUs and upholds the Committee’s view that they were not treated fairly. From the records made available to the Javid Chowdhury Committee it was found that while PII Coonoor sent its reply on 4th January, 2008 to the show-cause notice issued to it on 14th December, 2007, a second inspection of the Institute was carried out on 3rd January, 2008 – i.e. before the representation had been sent by the Unit against the show-cause notice. In addition, another disturbing fact that caught the Committee’s attention substantiating its above viewpoint while perusing the Javid Chowdhury Committee’s Final Report is placed below:

Para 4.4.3.8 The Committee notes that another important point mentioned in DCGI’s note dt. 16-1-08 relates to a meeting held on 17-18th Dec, 2007 between Secy. (HFW) and the DCGI on the side of the Ministry, and Additional Director General and his team from the side of WHO. In the Interim Report, the Ministry representatives had inadvertently been mentioned as Secretary (HFM) and DGHS. DCGI has recorded that in this meeting relating to the GMP standards of public sector units, the Ministry had agreed to suspend/cancel the licenses of the public sector units by 15-1-2008.

143 Para 4.4.3.9 The record doesn’t explain under what circumstances, and with whose authority, this assurance was given. The show-cause notice for suspension/cancellation of the license was issued on 14-12-07. It seems that almost immediately after the Secretary (HFW) went to Geneva, where he attended the meeting on 17th -18th December, 2007. Looking to these facts, there is no gainsaying that, even before the notice period was over, and without taking into account the unit’s representation into account, the assurance gave an unmistakable indication that the outcome was pre- decided. …..

Para 4.4.7.4 All in all the decision of the Ministry, both in legal terms and on consideration of the merits, was palpably incorrect. Because the outcome of the evaluation process had been pre-determined the entire process was null and void. On the other hand on consideration of the pros and cons from the view point of public interest, the decision was unjustified. Despite applying the most liberal interpretation to the events, the Committee could not uncover any rational reasons for the conclusion that was arrived at in the Ministry. The decision of the Ministry left the country without any supply from the public sector, thus exposing it to an unacceptable risk in vaccine security. As a result of total dependence on private suppliers, the Ministry became captive to private commercial pressures. The price of the domestic primary vaccines rose by 50-70% in the two years after the closure of the public sector units, and several key states experienced critical shortages of the vaccines. In view of this the Committee concludes, that, the palpably incorrect decision of the Ministry based on an illegal procedure and a flawed appreciation of the issues – was against broad community interest.”

7.113 From the forgone discussion, the Committee feels that the Ministry, the office of the DGHS and the DCGI cannot absolve themselves from the responsibility of the manner in which the case of the vaccine- producing PSUs was dealt with. The Committee finds the tenor of the action taken note, which is inclined towards absolving the top authorities of the responsibility for singling out the three PSUs while sparing the private players, to be unacceptable. The Committee observes with anguish that by trying to defend its decision to close down the three PSUs the Department has sought to deviate from the core concerns expressed by the Javid Chowdhury Committee. In view of the provisions of the Drugs and Cosmetics Act, the mandate of the DCGI ensuing therefrom and the action of suspending the licenses of the PSUs, the Department’s argument that a fair treatment was meted out to them is a specious one which only seeks to skirt the issue raised by the Javid Chowdhury Committee. It is apparent that effective corrective measures need to be initiated so that such a precarious situation does not recur in future.

7.114 The Committee urges upon the Department to take remedial steps to address the shortcomings highlighted by the Javid Chowdhury Committee. It also desires to be furnished with a point-wise Action Taken Note on the recommendations/ observations of the Final Report of the Javid Chowdhury Committee.

(f) 53rd Report

Clause 4: Incorporation of Institute

7.115 The Committee is not convinced by the clarification given by the Department about the incorporation of the Institute as a body corporate. The argument that it was based on similar provisions included in the Acts governing AIIMS and PGI fails to allay the apprehensions of the Committee. Doubt remains about the exact status of the Institute- a non-profit Institute or not-for-profit Institute or a profit-making Institute as per the connotation of the term ‘body corporate’. The Committee takes note of the assurance given by the Secretary of the Department for getting a legal clarification in the matter. The Committee would appreciate if all the apparent ambiguity arising due to the use of the term ‘body corporate’ is removed at the earliest. It would not be out of context to draw the attention of the Government to the Memorandum of Association governing NIMHANS at present which clarifies specifically that the Institute had been established for public benefit and accordingly its objects had been incorporated and restricted to meet such objectives and purposes as were regarded in law to be of public charitable nature. The Committee is of the firm opinion that conferring a status

144 of national Institute should be a further step towards this noble objective only. Any deviation therefrom was not acceptable to the Committee.

7.116 The Committee is constrained to observe that this is a case of bad drafting. What is more disturbing is that both the AIIMS and PGI Acts have a specific provision which clearly lays down that the President of the Institute shall be nominated by the Central Government from among the members other than the Director of the Institute. The Committee fails to understand the reasons for such a departure on the part of the Government. On drawing the attention of the Department towards the JIPMER Act, 2008 whereunder the Jawaharlal Institute of Medical Education and Research, Puducherry was conferred the status of National Institute having a provision similar to AIIMS and PGI Act, clarification given by the Department was far from satisfactory. The Committee was informed as follow:— “The JIPMER Bill was passed with an amendment by which Minister of Health and Family Welfare was not retained as Ex-officio President. Accordingly, the original clause relating to appointment of the President was modified to the effect that there shall be a President which will be nominated by the Central Government from amongst the members of JIPMER. However, the Minister of Health and Family Welfare is the President of the Institute body in AIIMS and PGI Act.”

7.117 The Committee views with serious concern the justification given by the Department on such a crucial issue. The very fact that the JIPMER Bill had to be passed in Parliament with an amendment so far as President of the Institute is concerned should have made things very clear to the Department. The Committee would have appreciated if the Department had taken note of its strong recommendations in this matter in its Report on the JIPMER Bill, 2008. The Committee can only reiterate that its stand remains unchanged. Head of the Institute body pertaining to very specialized areas has to be an eminent person having full command on such matters.

7.118 The Committee strongly feels that the appointment of a political head as President of the Institute Body of national importance cannot be considered advisable in any respect. It is a well known fact that the Ministers are entrusted with manifold responsibilities and functions. It becomes very unpractical to expect full attention at all times from Ministers that too in the functioning of premier Institutes like NIMHANS and other similar bodies. Therefore, the Committee is not in favour of proposed provision in clause 5(1)(a) as well as clause 7(1). The Committee, accordingly, recommends that the above sub-clause relating to appointment of Health Minister as President of the Body of the Institute may be deleted from Clause 5 and clause 7(1) may be modified on the pattern of relevant provisions in AIIMS and PGI Acts as indicated below:—

Clause 7(1) “There shall be a President of the Institute who shall be nominated by the Central Government from among the members other than the Director of the Institute”.

7.119 The reason given for the above modification was that it would be in conformity with the sub-clause (d) & (e) to clause 5(1). The Committee is in agreement with the above suggestion and, therefore, recommends that the above sub clause may be modified accordingly.

7.120 It was pointed out to the Committee that since this Institute is a unique one - specializing in medical/physical, behavioral sciences, it would therefore, be in the interest of the Institute to have eminent scientists from these disciplines and from different universities. The Committee would like to emphasize that over the years the Institute has emerged as a premier tertiary care medical and academic institution dedicated to the care of neurological, neurosurgical and psychiatric disorders and manpower development in super specialty branches. Having the status of Deemed University, it has gained international recognition in patient-care and education. It would, therefore, be in the fitness of things to have very eminent persons/ experts in the very specialized medical sciences. The Committee, accordingly, recommends that clause 5 (1) (i) may be modified as follows: “Seven persons of whom one shall be a non-medical scientist representing the Indian Science Congress Association and one each from biological, behaviourial and physical sciences of repute from any universities to be nominated by the Central Government in such manner as may be prescribed.” 145 7.121 The Committee finds some merit in the above suggestion and recommends the Ministry to modify the sub-clause as indicated below:— “Four representatives of medical faculties of Indian Universities of whom one shall be from NIMHANS to be nominated by the Central Government in such manner as may be prescribed”.

Clause 13: Functions of Institute

7.122 The Committee appreciates the above suggestion and desires the Ministry to modify the sub-clause accordingly.

7.123 The Committee hopes that the Ministry/Institute would keep it promise given to the Committee that none of the existing employees would be adversely affected as a result of the proposed legislation. The rules governing service conditions of the employees should be framed within three months from the date of enactment and laid on the Table of both the Houses for their scrutiny. All such rules should be framed in such a way so that service conditions of the existing employees remain unaltered so far as it is possible and under no circumstances the existing employees should be placed under any disadvantageous position under the new rules.

7.124 The Committee further recommends that none of the employees should face any sort of retrenchment or other similar measures on the pretext of lacking proper training, expertise and professional and technical skills. They should be provided with all opportunities of imparting proper training, expertise, technical and professional skills required for development of the Institute. The Committee hopes that any funds constraints would not come in the way of developing and growing the Institute into a model centre of excellence and fulfilling the goals as enumerated in the statement of Objects and Reasons appended to the Bill. The Committee, therefore, recommends the Ministry to allocate adequate funds to the Institute to enable it to grow into a model centre of excellence and to acquire additional manpower and other infrastructure to fulfill its objectives.

7.125 The Committee hopes that with the new autonomous status as proposed in the Bill, the Institute will grow and develop into centre of excellence in the field of Mental Health and Neuro-Science and a premier Institute of National importance.

7.126 The Committee adopts the remaining Clauses of the Bill, including enacting formula and the title without any amendment.

VIII. Secretariat

7.127 The Committee Section (H&FW) headed by a Deputy Director constituted the Secretariat of the Committee. Joint Secretary, Director and Joint Director remained incharge of the Section.

7.128 To assist the Committee in its work, materials received from the Departments as also from other organizations and individuals were studied, and relevant points were culled out. Questionnaries for written/ oral replies were prepared for use of the Committee.

7.129 The Committee also studied materials like Parliamentary Debates, answers to Parliamentary Questions, Budget Estimates, Economic Survey, Mid-Term Appraisal of the Eleventh Five Year Plan and Newspapers relevant to the subject under examination of the Committee. The Committee sent questions based on newspapers report/articles alongwith the questionnaire based on Expenditure Budget and other relevant documents. The Committee also examined- downloaded study material from websites on various subjects for preparation of reports.

7.130 The work relating to drafting, consideration and approval of draft reports by the Committee along with their presentation/laying, printing and distribution was undertaken.

146

ANNEXURE -VII (See Para 7.6)

Details of the sittings of the Committee on Health and Family Welfare during the year 2011.

Sl. Date of Duration Subject No. Meeting Hrs. Mts.

1. 05.01.2011 3.20 (i) The Committee heard the Secretary and other officers of the Department of Health and Family Welfare and the Director, NIMHANS on the National Institute of Mental Health & Neuro-Sciences Banglore Bill, 2010.

(ii) The Committee heard the Secretary, Department of Health and Family Welfare, Director General of Health Services, and Drug Controller General of India on the functioning of Central Drugs Standard Control Organisation (CDSCO).

(iii) The Committee also enquired from the Secretary, Department of Health and Family Welfare about the progress in respect of the implementation of the Committee’s recommendations as contained in its 45th Report on “Issues relating to availability of generic, generic- branded and branded medicines, their formulation and therapeutic efficacy and effectiveness”.

2. 18.01.2011 1.15 (i) The Committee decided to take oral evidence of the representatives of the Department of Health & Family Welfare and Pharmaceuticals on the various issues arising from the Committee’s 45th Report on generic, generic branded and branded medicines, their formulation and therapeutic efficacy and effectiveness”.

(ii) The Committee also discussed the issue of ban on drug Nimesulide.

(iii) The Committee discussed the proposed introduction of the Bachelor of Rural Health Care (BRHC) Course and decided to hear the views of the Secretary, Department of Health and Family Welfare alongwith the representatives of Medical Council of India in this regard.

3. 27.01.2011 1. 56 (i) The Committee heard the Secretary, Department of Health and Family Welfare and Dr. S.K. Sarin, Chairman & Dr. Ranjit Roy Chowdhary, Member, Board of Governors of the Medical Council of India (MCI) on the proposed introduction of Bachelor of Rural Health Care (BRHC) Course.

(ii) The Committee considered and adopted draft 50th and 51st Reports on the Action Taken Notes (ATNs) furnished by the Departments of AYUSH and Health and Family Welfare, respectively on the recommendations/observations as contained in the Committee’s 40th & 39th Reports on Demands for Grants (2010-11).

147 Sl. Date of Duration Subject No. Meeting Hrs. Mts. (i) The Committee heard the Secretary, Department of Health Research 4. 18.02.2011 2. 26 on the delay in furnishing the Interim Report of the Committee constituted to investigate ethical issues involved in trials of HPV

vaccine.

(ii) The Committee also heard the Secretary, Department of Pharmaceuticals, the Additional Secretary, Department of Health and Family Welfare and Drug Controller General of India (DGCI) on the various issues arising out of the Action Taken Note (ATN) furnished by the Department of Health and Family Welfare on the Committee’s 45th Report on ‘Issues relating to availability of generic, generic- branded and branded medicines, their formulation and therapeutic efficacy and effectiveness’.

(iii) The Committee considered and adopted its draft 52nd Report on the action taken by the Department of Health and Family Welfare on the Committee’s 43rd Report on ‘Major Issues concerning the three vaccine producing PSUs –the Central Research Institute (CRI), Kasauli, the Pasteur Institute of India (PII), Coonoor, and the BCG Vaccine Laboratory (BCGVL), Chennai’. The Committee also took up the issue arising from the contradictory stand taken by the DCGI on the issue of resumption of production of BCG Vaccines at BCG VL, Guindy and making BCG VL GMP compliant. The Committee decided to call for clarifications from the Ministry of Health and Family Welfare in this regard.

5. 01.03.2011 0.40 The Committee considered and adopted the draft 53rd Report on National Institute of Mental Health and Neuro-Sciences, Banglore Bill,

2010.

6. 23.03.2011 0.50 (i) The Committee took stock of the status of issues pending before it which included functioning of CGHS, CDSCO, NRHM and introduction of BRHC. The Committee decided to hear some experts/ NGOs/ Associations etc. on BRHC course. (ii) The Committee also decided to undertake study visit to Himachal Pradesh, Kerala, Tamil Nadu and Hyderabad. (iii) The Committee thereafter, took up the issue arising out of the contradictory stand taken by the DCGI vis-à-vis that taken by the Ministry of Health and Family Welfare on the issue of resumption of production of BCG vaccines at BCG VL, Guindy and making BCG VL GMP compliant.

7. 6.05.2011 2.5 (i)The Committee took stock of progress of examination of subjects under its purview like functioning of CGHS, functioning of CDSCO and implementation of NRHM. The Committee also decided to . constitute two Sub-Committees, one headed by Shri Datta Meghe, on the functioning of All India Institute Medical Sciences (AIIMS) and the other Sub-Committee headed by Shri Rasheed Masood, on the Central Government Health Scheme (CGHS);

148 Sl. Date of Duration Subject No. Meeting Hrs. Mts.

(ii) The Committee took up the matter regarding the contradictory stand taken by the Drug Controller General of India (DGCI) and Department of Health and Family Welfare on the twin issues of status of resumption of vaccine manufacturing by BCGVL, Guindy and making BCGVL, Guindy GMP compliant. In this regard, a resolution was passed and sent to the Hon’ble Minister of Health and Family Welfare; and

(iii) The Committee also heard the views of the experts, namely, Dr. M.K Daga, Director Professor, Department of Medicine, Maulana Azad Medical College; Dr. T. Sundaraman, Executive Director, National Health Systems Resource Centre; Dr. Bir Singh, Prof. of Community Medicine, AIIMS; and Dr. Vinod Kumar Paul, Prof. & Head, Division of Neonatology, Department of Pediatrics, AIIMS, on the Bachelor of Rural Health Care (BHRC) course proposed to be introduced by the Government.

8. 3.06.2011 1.35 (i) The Committee took stock of the issue arising from the Resolution passed by the Committee on the contradictory stand taken by the Drug Controller General of India (DGCI) and Department of Health and Family Welfare on the twin issues of status of resumption of vaccine manufacturing by BCGVL, Guindy and making it cGMP compliant. In this regard, the Committee directed the Secretariat to seek the follow up action in the matter and directed the Department to furnish progress report in this regard on a bi-monthly basis; and

(ii) The Committee also heard views of the Secretary of Department of Health and Family Welfare along with the Drug Controller General of India (DCGI) and the Secretary of Department of Pharmaceuticals on the various issues arising out of the final Action Taken Note (ATN) furnished by the Department of Health and Family Welfare on the Committee’s 45th Report on ‘Issues relating to availability of generic, generic-branded and branded medicines , their formulation and therapeutic efficacy and effectiveness’.

9. 01.07.2011 2.15 (i) The Committee heard the views of Dr. Devi Shetty, Chairman, Narayana Hrudayalaya, Bangalore, Karnataka, Dr. K.M. Shyam Prasad, Executive Director, National Lutheran Health and Medical Board, Tamil Nadu, Dr. Ashok Samanta, Vice President & Dr. Ansuman Mitra, Executive Member, Medical Service Centre, Kolkata, West Bengal and Dr. Vinay Aggarwal, President & Dr. D.R.Rai, Hony. Secretary General, Indian Medical Association, New Delhi on the Bachelor of Rural Health Care (BHRC) course proposed to be introduced by the Government; (ii) The Committee took stock of the issues pending before it, which included (a) Reply dated 30th June, 2011 received from the Department of Health and Family Welfare on the issue of revival of three vaccine producing PSUs; (b) functioning of Central Drugs Standard Control Organisation (CDSCO); and (c) the final report of the Committee appointed by the Government of India to enquire into “Alleged irregularities in the conduct of studies using Human Papilloma Virus (HPV) vaccine” by PATH in India.

149 Sl. Date of Duration Subject No. Meeting Hrs. Mts. 10. 25.07.2011 2. 20 (i) The Committee heard the Secretary and other officers of the Department of Health and Family Welfare on the issues of revival of three vaccine producing PSUs including the BCG Vaccine. Laboratory at Guindy. (ii) The Committee also heard the Secretary, Department of Health Research on the issues arising out of the final report of the Committee appointed to enquire into “Alleged irregularities in the conduct of studies using Human Papilloma Virus (HPV) by PATH in the country”.

11. 05.08.2011 0.30 The Committee considered a request of the Ministry of Health and . Family Welfare for making available the minutes of the meeting of the Committee held on 5th January, 2011 to the Hon’ble High Court of Chennai.

12. 21.09.2011 1. 10 (i) The reconstituted Committee discussed its future course of action. . (ii) The Committee also decided to take up pending issues before it and reconstituted two sub-Committees on the — (a) functioning of AIIMS; and (b) functioning of CGHS under the convenorship of Dr. Sanjay Jaiswal and Shri Rasheed Masood, respectively. (iii) The Committee also decided to constitute a small sub-Committee consisting of Dr. Jyoti Mirdha as Convenor and Dr. Sanjay Jaiswal and Sh. Balbir Punj as Members for looking into the draft reports before they are adopted by the main Committee.

13. 12.10.2011 2.15 (i) The Committee heard the views of the Secretary and other officers of the Department of Health and Family Welfare on (i) the functioning of Central Durgs Standard Control Organization (CDSCO); and (ii) the implementation of National Rural Health Mission (NRHM).

(ii) The Committee also decided to take up another subject namely, “Clinical Trials of drugs” for examination and report.

14. 22.12.2011 1.00 The Committee heard the views of the Secretary, Department of Health and Family Welfare along with the representative of Medical Council of . India on the proposed introduction of the Bachelor of Rural Health Care (BRHC) course.

15. 27.12.2011 0.50 (i) The Committee took note of the fact that the National Commission for Human Resources for Health Bill, 2011 had been referred to the Committee for examination and report within three months. The Committee decided to issue a Press Release inviting views/suggestions from various stakeholders on the Bill. The Committee also decided to seek views of the State Governments/ UTs on the Bill. (ii) The Committee also heard the views of the Secretary, Department of Health and Family Welfare and Chairperson, Board of Governors, Medical Council of India (MCI), on the proposed introduction of the Bachelor of Rural Health Care (BRHC) course as the evidence remained during the previous meeting of the Committee held on 22nd December, 2011.

150 ANNEXURE -VIII (See Para 7.7)

Details of the sittings of the Sub-Committee-I of the Department-related Parliamentary Standing Committee on Health and Family Welfare on AIIMS during the year 2011.

Sl. Date of Duration Subject No. Meeting Hrs. Mts. 1. 30.06.2011 0.45 The Sub-Committee discussed its further course of action. The Sub- Committee also decided to begin with a briefing meeting with the Secretary, Department of Health and Family Welfare along with Director, AIIMS, followed by interaction with the Experts and faculty/Doctors/Employee’s Associations of AIIMS on the subject .

2. 11.07.2011 2.00 The Sub-Committee heard the views of the Secretary, Department of Health and Family Welfare & Director, AIIMS on the functioning of AIIMS.

3. 26.07.2011 1. 30 The Sub-Committee heard the views of Dr. Sneh Bhargava, Former Director, AIIMS, Prof. S.K. Jindal, PGIMER, Chandigarh; Dr. KSVK Subba Rao, Director, JIPMER, Puducherry; and Dr. K. Srinath Reddy, President, Public Health Foundation of India on the functioning of All India Institute of Medical Sciences.

4. 30.09.2011 2.11 The Sub-Committee heard the views of Ms. K. Sujatha Rao, former Secretary, Ministry of Health and Family Welfare and Prof. M.S. Valiathan, National Research Porfessor, Manipal University, Manipal on the functioning of AIIMS.

5. 13.10.2011 1.45. The Sub-Committee heard the views of Prof. Subrata Sinha, Director, National Brain Research Centre, Manesar, Haryana; Prof. Pratap Sharan, Departement of Psychiatry, AIIMS and Prof. Anoop Saraya, Department of Gastro-enterology, AIIMS on the functioning of AIIMS.

6. 07.12.2011 2.30 The Sub-Committee heard the views of Prof. Sukhadeo Thorat, Chairman, Indian Council for Social Science Research, Shri P.S. Krishnan, Former Member Secretary, National Commission for Backward Classes, Dr L. R. Murmu, Additional Professor, Forum for Rights and Equality, AIIMS and representatives of the Ministry of Health and Family Welfare, in connection with the examination of functioning of AIIMS. The Committee also heard Dr. Debjyoti Karmakar, President & Dr. Bhaumik Shah, Representative, Resident Doctors’ Association, AIIMS; Shri Harshit Garg, Finance Secretary; Shri Himanshu Kanwat, General Secretary; and Ms. Komal Parmar, Students Union, AIIMS; Shri Rupesh Kumar Tyagi, Chairman and Shri Sanjay Kumar, General Secretary, Society of Young Scientists, AIIMS on the subject.

7. 14.12..2011 1.05 The Sub-Committee heard the views of (i) Prof. P.K. Dave, Former Director, AIIMS; and (ii) Dr. Manoj Singh, President and other representatives, Faculty Association, AIIMS on the functioning of AIIMS.

151 ANNEXURE -IX (See Para 7.7)

Details of the sittings of the Sub-Committee-II of the Department-related Parliamentary Standing Committee on Health and Family Welfare on CGHS during the year 2011.

Sl. Date of Duration Subject No. Meeting Hrs. Mts. 1. 15.06.2011 0. 40 (i) The Sub-Committee discussed its further course of action. The Committee also decided to begin its study by having a briefing meeting with the representatives of the Department of Health and Family Welfare, followed by interaction with experts, stakeholders viz. Govt. Employees’ Resident Welfare Associations, Pensioners’ Associations and Associations of CGHS Doctors, Para-medical staff and employees. The Sub-Committee also decided to visit few CGHS dispensaries located in the National Capital Region, Medical Store Depots of CGHS; and (ii) The Sub-Committee also decided to issue a Press Release inviting suggestions/views on the functioning of CGHS from all stakeholders.

2. 27.06.2011 1.50 The Sub-Committee heard the views of the Additional Secretary & DG (CGHS, Ministry of Health and Family Welfare on the functioning of CGHS.

3. 26.07.2011 1.15 (i) The Sub-Committee heard the views of Shri. R.P. Sharma, CGHS Beneficiaries Forum, Kalkaji Extention, New Delhi; Shri S. Krishnan & Shri Parmeshwar, Indian Account and Audit Service (Rtd.); Shri K. S. Kohli, Arepa Welfare Officer, West Patel Nagar, New Delhi; Shri S.K. Chatterjee, Vice President & Shri M. Jojaiah Secretary, Government Pensioners Association Nagpur and I.S. Hora, General Secretary & Shri B.S. Rampala Pensioners & Retired Persons Association (Regd.), Janakpuri, New Delhi on the functioning of CGHS.

4. 11.10.2011 1. 05 (i) The Sub-Committee heard the views of Dr. Janki Ballabh Jha, Retd., CMO, CGHS, New Delhi, Dr. Basav Gupta, Joint Secretary, All India GDMO Association & Joint Director, CGHS, House, New Delhi; Dr. Prakashan, Vice President, All India CGHS Homoeopathic Doctors’ Association, New Delhi and Dr. Talat Usmani, CMO- Incharge, Unani Dispensary, Sarojini Nagar, New Delhi in connection with the examination of functioning of CGHS.

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CHAPTER VIII COMMITTEE ON HOME AFFAIRS

I. Composition of the Committee

8.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

Shri M. Venkaiah Naidu — Chairman

RAJYA SABHA

2. Shri Rishang Keishing 3. Dr. N. Janardhana Reddy 4. Shri S.S. Ahluwalia 5. Shri Naresh Chandra Agrawal 6. Shri Prasanta Chatterjee 7. ƒShri Javed Akhtar 8. Shri Tariq Anwar 9. Dr. V. Maitreyan 10. Shri D. Raja

LOK SABHA

11. Shri L.K. Advani 12. Dr. Rattan Singh Ajnala 13. Dr. Kakoli Ghosh Dastidar 14. Shri Ramen Deka 15. Shri L. Raja Gopal 16. Shri Mohd. Maulana Asrarul Haque 17. Shri Naveen Jindal 18. Shri Jitender Singh Malik (Sonepat) 19. Shri Lalubhai Babubhai Patel 20. Shri Natubhai Gomanbhai Patel 21. Dr. Nilesh N. Rane 22. Shri 23. Adv. A. Sampath 24. Shri Hamdullah Sayeed 25. Shri Neeraj Shekhar 26. Dr. Raghuvansh Prasad Singh 27. Shri Ravneet Singh 28. Shrimati Seema Upadhyay 29. Shri Harsh Vardhan 30. Shri Bhausaheb Rajaram Wakchaure 31. Shri Dinesh Chandra Yadav

ƒ Shri Javed Akhtar nominated w.e.f. 21st September 2010 vice Shri Tiruchi Siva, who resigned from the Membership of the DRSC on Home Affairs w.e.f. the 13th September, 2010.

153 8.2 The Committee was re-constituted on 31st August, 2011 with the following composition:—

Shri M. Venkaiah Naidu — Chairman

RAJYA SABHA

2. Shri Rishang Keishing 3. Dr. N. Janardhana Reddy 4. Shri S.S. Ahluwalia 5. Shri Naresh Chandra Agrawal 6. Shri Prasanta Chatterjee 7. Shri Tariq Anwar 8. Dr. V. Maitreyan 9. Shri D. Raja 10. Shri Javed Akhtar

LOK SABHA

11. Shri L.K. Advani 12. Shri Sansuma Khunggur Bwiswmuthiary 13. Shri Khagen Das 14. Dr. Kakoli Ghosh Dastidar 15. Shri Ramen Deka 16. Shri Lagadapati Raja Gopal 17. Shri Mohd. Maulana Asrarul Haque 18. Shri Naveen Jindal 19. Shri Jitender Singh Malik 20. Shri Babulal Marandi 21. Shri 22. Shri Lalubhai B. Patel 23. Shri Natubhai Gomanbhai Patel 24. Dr. Nilesh N. Rane 25. Shri Bishnu Pada Ray 26. Shri Adhi Sankar 27. Shri Hamdullah Sayeed 28. Shri Neeraj Shekhar 29. Shri Ravneet Singh 30. Shri Harsh Vardhan 31. Shri Dinesh Chandra Yadav

II. Subjects selected for examination

8.3 The Committee, in its sitting held on 11th May, 2011 further identified the following subjects to be undertaken by the Committee for detailed study and examination:—

Sl. No. Ministry/Department Subject 1. Ministry of Home Affairs Security at Airports in the country;

2. -do- Working of Immigration Division in the Ministry of Home Affairs;

3. Working of Sardar Vallabhbhai Patel National -do- Police Academy, Hyderabad;

154 Sl. No. Ministry/Department Subject 4. Ministry of Home Affairs Disaster Management in the country; -do- Administration of Union Territories; 5. Ministry of DoNER Infrastructure Projects and Economic 6. Development in NE Region;

Ministry of Home Affairs Functioning of Civil Defence Training Institutes in 7. the country;

-do- Coastal Security Management; 8.

9. -do- Indo-Bangla Border Fencing;

10. -do- Problems faced by the Home Guards and their Working Conditions; and

11. -do- Law and order situation in Delhi.

8.4 In addition to the above subjects, Hon’ble Chairman, Rajya Sabha also referred the following Bills to the Committee for examination and report:—

Sl.No. Date of reference Name of the Bill 1. 19.08.2011 Border Security Force (Amendment) Bill, 2011 2. 09.12.2011 The Citizenship (Amendment) Bill, 2011

8.5 Besides the above Bill, the Committee (2010-11) had also inherited the following Bills referred to it in 2010:—

Sl.No. Date of reference Name of the Bill 1. 20.08.2010 The New Delhi Municipal Council (Amendment) Bill, 2010 2. 01.09.2010 The Arms (Amendment) Bill, 2010 3. 30.12.2010 The Enemy Property (Amendment & Validation) Second Bill, 2010

III. Constitution of Sub-Committees of the Committee on Home Affairs 8.6 The Chairman, Department-related Parliamentary Standing Committee on Home Affairs constituted sub-Committee on the Enemy Property (Amendment & Validation) Second Bill, 2010 on 27th April 2011 consisting of Nine Members including Chairman of the Committee. IV. Review of work done (a) Sittings of the Committee 8.7 Statement showing the dates of sittings of the Committee held during the period under review, the duration of the sittings, the number of Members present and the subjects discussed, is at Annexure X. (b) Sittings of Sub-Committees 8.8 Statement showing the dates of sittings of the sub-Committee held during the period under review, the duration of the sittings, the number of Members present and the subject discussed, is at Annexure XI. (c) Material and Memoranda furnished to the Committee

155

8.9 Voluminous notes/documents, received from the concerned Ministries/Departments on the subjects/Bills were examined by the Committee.

8.10 Memoranda, received from organizations/individuals on different subjects/Bills were examined by the Committee. Those Memoranda were sent to the concerned Ministries for their comments.

(d) Study Visits

8.11 The Committee undertook study visits to Hyderabad, Andhra Pradesh from 4th to 6th July 2011 to have in-depth study of Internal Security - Cross-border Terrorism, Infiltration and Coastal Security; Security at Airports in the country; Working of Immigration Office of the Ministry of Home Affairs; Disaster Management in the country, and working of Sardar Vallabhbhai Patel National Police Academy. The Committee also visited International Airport, New Delhi on 20th July 2011 to assess the working of Immigration Office, security arrangements and disaster management at the airport.

(e) Evidence Taken

8.12 Sixteen evidences were taken by the Committee during the period under review and verbatim records of the sittings were kept.

V. Reports Presented (a) Reports

8.13 During 2010, the Committee presented the following Reports to both Houses of Parliament:—

Sl. No. Report No. and Dates of Subject Presentation/Laying Rajya Sabha Lok Sabha 1. 148th The New Delhi Municipal Council (Amendment) 22.02.2011 22.02.2011 Bill, 2010 2. 149th Action Taken by Government on the observations/ 01.08.2011 02.08.2011 recommendation contained in the 145th Report on (Presented to (Forwarded Demands for Grants (2010-11) of the Ministry of DoNER Chairman on to Speaker 02.06.2011) on 02.06.2011)

3. 150th Action Taken by Government on the 01.08.2011 02.08.2011 recommendations/observations contained in the 144th (Presented to (Forwarded Report on Demands for Grants (2010-11) of the Ministry Chairman on to Speaker of Home Affairs 02.06.2011) on 02.06.2011)

4. 151st The Arms (Amendment) Bill, 2010 01.08.2011 02.08.2011 (Presented to (Forwarded Chairman on to Speaker 02.06.2011) on 02.06.2011)

5. 152nd Action Taken by Government on the recommendations/ 23.11.2011 22.11.2011 observations contained in the 136th Report on Revamping (Presented to (Forwarded and Revitalisation of Civil Defence in the Country Chairman on to Speaker 03.11.2011) on 03.11.2011)

Sl. No. Report No. and Dates of Subject

156 Presentation/Laying Rajya Sabha / Lok Sabha 6. 153rd Action Taken by Government on the recommendations/ 23.11.2011 22.11.2011 observations contained in the 135th Report on Border (Presented to (Forwarded Fencing & Flood lighting Projects along Indo-Pak Borders Chairman on to Speaker 03.11.2011) on 03.11.2011) 7. 154th The Border Security Force (Amendment) Bill, 2011 23.11.2011 22.11.2011 (Presented to (Forwarded Chairman on to Speaker 03.11.2011) on 03.11.2011) 8. 155th The Enemy Property (Amendment & Validation) Second 23.11.2011 22.11.2011 Bill, 2010 (Presented to (Forwarded Chairman on to Speaker 03.11.2011) on 03.11.2011) 9. 156th Action Taken by Government on the recommendations 22.12.2011 22.12.2011 contained in the 142nd Report on Implementations of Central Scheme of Modernisation of Prison Administration

(b) Action Taken Reports

8.14 Five Action Taken Reports were presented/laid during the period under review as mentioned in para 8.13 above.

VI. Summary of Recommendations

(a) Report No. 148 [The New Delhi Municipal Council (Amendment) Bill, 2010]

8.15 The Committee has deliberated on the Bill at length. However, on the question of making NDMC an elected body, rather than a nominated body as at present, the Committee is divided. There is no consensus in the Committee either in favour of or against the Bill. A section of the Members are of the view that the Bill should be passed in its present form. The other section of the Members strongly feel that keeping in view the spirit of the Constitution (Seventy-Third Amendment) Act, 1992, the Constitution (Seventy-Fourth Amendment) Act, 1992, the structure of the Cantonment Boards and the aspirations of the residents of the NDMC area, the Council should be made into an elected body, at least partially, on the lines of the Cantonment Boards, to subserve the core principles of local self governance as enshrined in the Constitution.

8.16 The issue of revolving Chairmanship of the NDMC, for the purpose of presiding over the meetings of the Council, repeatedly came up for discussion in the Committee. The majority view in the Committee disagreed with the concept of revolving Chairmanship.

8.17 Be that as it may be, in view of the divergent perception in the Committee on the subject matter of the Bill, and the persistent stand of the Government of making no change in the governance structure of NDMC, the Committee is of the considered view that the Government should take up the issue at the larger level with major political parties and other stakeholders to reconcile the differing viewpoints and to explore the possibility of evolving a consensus on this issue, before piloting the Bill in Parliament.

(b) Report No. 149 [Action taken by Government on the Observations/ Recommendation Contained in the 145th Report on Demands for Grants (2010-11) of the Ministry of DoNER]

Timely Approval of Funds by the Planning Commission 157

8.18 The Committee reiterates its recommendation that the Planning Commission should consider enhanced requirement of the Ministry of DoNER so that the projects undertaken and proposed to be undertaken, may not be affected for want of funds.

Scheme under Special Fund for Infrastructure Upgradation in North Eastern Region

8.19 The Committee recommends that the projects already sanctioned may be implemented within a fixed time schedule. The projects proposed to be sanctioned, may also be cleared at the earliest.

Tourism

8.20 The Committee is hopeful that the comprehensive Tourism Master Plan has been prepared. Steps should be taken to implement the same.

Vision NER 2020

8.21 The Committee would like to be apprised of bi-annual status reports on action taken to implement the vision NER 2020 Document.

General Recommendation

8.22 The Committee reiterates its recommendation that the Government should provide attractive incentives, over and above the existing allowances to the officials posted in the NER, to overcome the problem of shortage of officials in that region.

Sarva Shiksha Abhiyan in the Region

8.23 The Committee urges upon the Government to properly utilize the enhanced allocation by the Central Government for Sarva Shiksha Abhiyan programme. The Government should strive to reduce the variations in the literacy rates among the North East States and improve the quality of education.

8.24 The Committee hopes that the Government of Arunachal Pradesh will clear its dues of state share for implementation of Sarva Shiksha Abhiyan programme soon.

Advocacy & Publicity

8.25 The Committee is dismayed to observe that no steps have been taken to arrest the trend of under- utilization of the fund meant for this scheme during the previous two consecutive years as the actuals 2010-11 (upto 31.1.2011) stands at Rs. 2.39 crores against BE and RE 2010-11 at Rs. 7.00 crores. The Committee therefore strongly recommends that sincere and serious efforts should be taken to ensure that financial targets under this scheme are achieved with more inflow of investment in the region. The Committee also desires to be apprised of the new initiatives proposed to be taken by the Government under the Scheme.

Technical Assistance & Capacity Building

8.26 The Committee is not satisfied with the reply given by the Ministry. The issue is being unnecessarily dragged on. This delaying tactic is not acceptable to the Committee. NEC may explore the possibility of partnership with AAI whereby the proposed land at Lilabari can be used by AAI for setting up a composite training facility for ground level staff for navigation and aircraft maintenance. The Committee, however, would like to discuss the matter with the officers of the Ministry at an appropriate time.

Externally Aided Projects 158

8.27 The Committee is disappointed with the tardy progress of the schemes. It is unfortunate that the schemes again could not take off in the year 2010-11. The Committee, therefore, strongly recommends for completion of all formalities to ensure that the schemes take off in the year 2011-12. The Committee would also like to discuss the issue with the officers of the Ministry at the appropriate time.

Monitoring Mechanism

8.28 The Committee takes a serious view of the delay at several levels in putting in place a robust monitoring mechanism for ensuring timely completion of the projects in the NER. The Committee notes that the various steps mooted by the Ministry are still at proposal stage only. The Committee would, therefore, like to be informed of the status of implementation of the various monitoring mechanisms and concrete results achieved due to the monitoring systems already in force.

General Recommendation

8.29 The Committee takes a serious view of the delay at several levels in putting in place a robust monitoring mechanism for ensuring timely completion of the projects in the NER. The Committee notes that the various steps mooted by the Ministry are still at proposal stage only. The Committee would, therefore, like to be informed of the status of implementation of the various monitoring mechanisms and concrete results achieved due to the monitoring systems already in force.

Bodoland Territorial Council (BTC)

8.30 The Committee is constrained to express its displeasure over the fact that despite vigorous follow-up action by Ministry of DoNER, the projects could not be completed in time. The Committee recommends that all the projects should be completed and the funds allocated should be utilized on within a strict timeframe. The Committee notes that the Government has still not released the balance of the sanctioned amount for the year 2009-10. The Committee hopes that the Ministry of DONER would play an active role in procuring all the necessary documents viz. UC, QPR, Inspection Report, Work Plan, etc. for timely release of funds so that the pending projects are completed expeditiously.

Connectivity

8.31 The Committee has found the action taken reply of the Ministry to be too general to be commented upon. The Committee has not been apprised of the current scenario with respect to the development of airports and air connectivity. The Committee calls upon the Ministry to send a comprehensive status report to it immediately. 8.32 The Committee reiterates its recommendation that the Government should stick to the target for linking the States of the region through rail network. The Committee expresses its displeasure over the fact that Ministry of Railways has not furnished its comments even after such a long time. The Committee recommends that the Ministry of DoNER should pursue the matter with the Ministry of Railways.

Key Areas and Projects Under Look East Policy

8.33 The Committee reiterates its recommendation that the Government should complete all the projects at the earliest. The Committee calls upon the Ministry of DoNER should pursue the matter with the Ministry of External Affairs and apprise it immediately of their response in the matter.

General Recommendations

8.34 The Committee feels that the government should pay more attention to the agriculture and allied sectors in the region. The Committee takes serious note of the fact that the Department of Financial Services, Ministry of Finance has not furnished its response even after a long gap. The Committee feels that the Ministry of DoNER should have pursued the matter with the concerned Ministry and place the comments before the Committee.

159

(c) Report No. 150 [Action Taken by Government on the Recommendations/Observations Contained in the 144th Report on Demands for Grants (2010-11) of the Ministry of Home Affairs]

Modernisation of State Police Forces (MPF)

8.35 The Committee may be informed of the decisions taken in the last Conference of Chief Ministers on Internal Security.

8.36 The Committee appreciates the fact that the Audit Reports are sent by the Ministry of Home Affairs to respective States with the request to furnish ATRs. But the Committee is disturbed to note the inconsistencies and deficiencies that are there in the common issues identified by the Ministry in the ATRs. The Ministry should make it compulsory for all the States to take corrective measures on all these deficiencies, and if necessary, at the Minister's level the issues may be taken up with the Chief Ministers.

National Disaster Management

8.37 The Committee desires that the guidelines on the subjects, which are at the stages of conceptualization and formulation, may be given final shape at the earliest and an early solution may be found to the problem of land availability since requisite fund had been made in the Budget.

Home Guards

8.38 The Committee welcomes the proposal and recommends that a decision in the matter of increasing duty/training allowance may be taken at the earliest.

Fire Services

8.39 The Committee feels that role of the Central Government does not end up with providing monetary assistance and grant-in-aid on the plea that the Fire Services is a State subject. The Apex Council needs to be strengthened to make its presence felt. Though the code/Rules/Manuals/Regulations exist on paper, their actual enforcement and transparency in giving fire safety clearance in construction of structures, are lacking. The Committee takes note of reported fire and safety clearance given to some guest houses in Gurgaon before completion of construction activities. Such irregularities need to be curbed with firm hands. The Committee also desires that the upgradation of National fire Service college, Nagpur be taken up in time bond manner.

Naxalism

8.40 The Government may also take action on opening technical and engineering institutions in the LWE areas as recommended earlier.

8.41 It appears to the Committee that the progress in setting up of Gram Nayayalyas is not satisfactory. The Committee desires that union government should take a proactive lead and persuade State Governments to set up more and more such Nyayalayas. The Committee also desires to be informed of the action taken on the recommendation of the Thirteenth Finance Commission for improvement in justice delivery.

Medical Facility for Central Government Employees and Other Middle Class People in Andaman and Nicobar Islands

8.42 The Committee desires that the decision on the proposed establishment of a medical college on PPP model for Andaman and Nicobar Islands, may be taken expeditiously.

8.43 The Committee calls upon the Ministry to let it know the status in respect of the following items:

160 (a) Increasing the frequency of flights to Port Blair and the need for airlines to operate on the Port Blair Sector in accordance with the Route Disposal Guidelines of GoI. (b) Subsidy on airfare and other concessions for specialized categories from mainland to islands. (c) Acquisition of twenty five numbers vessels.

General Recommendations

8.44 The Committee urges upon the Ministry of Home Affairs to advice the UT Admin to take expeditious decisions on proposed enhancement of permanent disability allowance and unemployment allowance and extending the benefits upto 48 years of age.

8.45 The Committee would like to be apprised of the concrete measures taken to control erosion. The Committee may also be informed of the status of implementation of settlement Plan and allotment of alternative land to farmers.

Demand no. 96— Dadra & Nagar Haveli

Pay of Home Guards in Dadra & Nagar Haveli vis-à-vis Other UTs

8.46 The Committee desires that an early decision may be taken on the proposal for enhancement of allowances of Home Guards in the D&NH.

Availability of Drinking Water

8.47 Steps may be taken for early completion of the projects so that the people may not face drinking water problem, especially during summer.

Demand no. 97— Daman & Diu

Problem of Fishermen

8.48 The Committee desires that the matter may be pursued vigorously with the Government of Pakistan for early release of fishermen languishing in Pakistani jails.

8.49 The Committee desires that the construction of 60-bed hospital should start immediately, if not already commenced and may be completed as per target.

Housing Scheme for Central Police Forces

8.50 The Committee desires that the all formalities concerning RFQs for first and second lots may be completed at the earliest. Efforts may also be made to take up construction of the remaining proposed flats. The Committee appreciates the concept of composite hospital. Vigorous efforts may be made to open the hospitals expeditiously.

8.51 The Committee recommends that the matter may be regularly pursued with the Planning Commission and the Ministry of Finance for allocation of funds.

8.52 The Committee desires that the matter may be further pursued with the Ministry of Urban Development. If needed, the matter may be taken at the Minister of Home Affairs with the Minister of Urban Development.

Demand Numbers 95, 96, 97, 98 & 99—Union Territories (With Legislature)

General Recommendation

161

8.53 The Committee desires that an early decision may be taken in regard to enhancement of pension under various schemes.

8.54 The Anganwadi workers and Anganwadi helpers are the backbone of Integrated Child Development Services Scheme. An increase in the remuneration of Anganwadi workers from Rs. 1,500 per month to Rs. 3,000 per month and for Anganwadi helpers from Rs. 750 per month to Rs. 1,500 per month was announced by the Union Finance Minister in his Budget (2011-12) speech with the likelihood of improving lives of around 22 lakh Anganwadi workers and helpers. The Committee is of the view that the UT Administration also should enhance Honorarium of Anganwadi workers and helpers, as has been promised in the Union Budget (2011-12).

Modernisation of State Police Force (MPF)

8.55 The Committee expresses its disappointment over the inordinate delay in finalizing the software. It is unfortunate that the Ministry is still exploring the alternative to develop a less-costly MIS software. The Committee calls upon the Ministry to take immediate decision in the matter. The Committee however would like to discuss with the officers of the Ministry later.

Modernization of Prison Administration

8.56 The Committee is constrained to note that the important scheme for modernizing prisons in the country is not being given the importance it deserves. It is unfortunate that Government has decided to close the scheme. From the point of view of improving the facilities in the prisons, it is necessary to have such a scheme as States will not be implementing such a scheme on their own. The Committee desires that Government may reconsider its decision and inform it of its decision.

Bureau of Police Research & Development (BPR&D)

8.57 The Committee is constrained to note that the construction of building of BPR&D is taking unduly a long time due to various reasons. The land was given to BPR&D only in March, 2010. The construction may be taken up and completed immediately. There should not be any further delay in the process. The Committee may be informed of the status of the Central Academy for Police Training, Bhopal. The Ministry may take immediate steps to finalise the recruitment rules because filling up of the posts is very essential for taking up the research projects in BPR&D.

Allocation of BADP and HADP

8.58 The Committee is not happy with the way the decision is being delayed. This delay will only hamper the better implementation of the critical programmes. The Committee desires that a quick decision may be taken in the matter.

Naxalism

8.59 The Committee is unhappy to note that the Government has not indicated anything relating to opening of bigger hospitals in some selected places of LWE areas. The Government may give special consideration for this.

8.60 The reply of the Government is casual and the recommendations of the Committee have been taken lightly. The Central Government should review the security arrangements in all the jails situated in LWE districts and ensure that the State Governments make necessary security arrangements therein. The Committee reiterates its recommendation for increasing intelligence network in the naxal-affected areas.

Medical Facility for Central Government Employees and Other Middle Class People

8.61 In view of the scant medical facility available in the islands and a large number of people living there, emergency air lifting of patients in critical condition is necessary. If the helicopters are not suitable for evacuation to mainland, Government should take a decision on introducing air ambulance. Air ambulance needs to be considered from the point of view of the residents of the islands rather than on commercial basis. 162 However, once the super-specialty facilities are available in the islands, withdrawal of air ambulance can be considered.

Urban Water Supply Scheme

8.62 The Committee feels that the proposal for augmentation of water supply scheme for Silvassa, though approved in 2007, is yet to see the light of the day. It is taking an unduly long time. The Committee desires that an early decision may be taken to complete the projects.

General Recommendations

8.63 The Committee takes a serious view of the fact that though coastal regulation zone in Diu District was discussed in the meeting of DDCZMA on 24.08.2005, the final approval for NCZMA is still awaited. Such unnecessary delays do not augur well for the development of the country. The Committee desires that all steps may be taken for an early approval of the change of coastal regulation zone in Diu District.

8.64 The Committee expresses serious concern over the delay in regard to determining the marine out-fall point. The Committee desires that the NIO should submit its report at the earliest if not submitted already. If the report is already submitted, necessary action may be taken thereon.

8.65 The Committee is constrained to note that in spite of the serious water problem in both the districts of Daman & Diu, the efforts to provide water are still at an early stage. The Committee desires that the UT may submit the detailed proposal for water supply scheme for rural areas of Daman at the earliest. Similarly, for the proposal of water supply in Diu District, the Ministry of Rural Development may give administrative and expenditure section for the project, if not given already.

Census 2011 and National Population Register

8.66 The Committee is not convinced by the reply of the Ministry. The Ministry has not clarified as to why the 'nationality' clause cannot be removed from the NPR Household Schedule. The Committee reiterates its recommendation that the 'Nationality' clause may be removed from the Schedule.

Housing Scheme for Delhi Police

8.67 The Committee is constrained to note that the efforts made in coordinating with the land-owning agencies are not yielding any results. The matter should be taken up at the Minister's level, if the efforts are not yielding any results. The Committee recommends that all-out efforts may be made for allotment of the land. The Committee also desires to discuss the matter with the officers later.

8.68 The Committee does not accept the contention of DDA. Now, the DDA is allotting houses for new registrants. In such a case, DDA can allot some of the houses to Delhi Police. The Committee, therefore, reiterates its recommendation that DDA may allot some flats every year to Delhi Police personnel. The MHA may take it up with the Ministry of Urban Development/DDA.

8.69 The Committee does not accept the comments of the Ministry of Urban Development. Reiterating its earlier recommendation, the Committee desires that the Ministry of Home Affairs may again take it up with the Ministry of Urban Development.

Naxalism

8.70 The Committee recommends that special attention may be given to the scheme of “Skill Development Plan for youth of 34 districts affected by Left Wing Extremism (LWE)” which is at the ‘in-principle’ approval stage only. The Committee desires that progress monitoring may be taken up at the highest level in the Ministry keeping in the mind the severity of the naxalite problem.

(d) Report No. 151 [The Arms (Amendment) Bill, 2010]

163

8.71 The Committee would like to place on record the fact that it considered the subject “Arms, Fire Arms and Ammunitions”, allocated to the Ministry of Home Affairs, under the Government of India (Allocation of Business) Rules, 1961 (Entry No. 41) in seven sittings, even before the reference of the Arms (Amendment) Bill, 2010 to it. The Committee took up the subject for detailed discussion keeping in view the vastly changed security, law and order and social scenarios in the country. 8.72 The Committee wanted to know from the representatives of the Ministry of Home Affairs the background which prompted the Ministry to review the existing Arms Policy. In this context, the Committee decided to examine the subject "Arms, Fire Arms and Ammunitions" and felt that till such time the Committee had formulated its recommendations and observations on the subject, the Ministry should not finalize the new policy. The Committee repeatedly advised the Government not to proceed with the announcement of the new policy and its implementation, unless Parliament had approved the amendments to the Arms Act,1959 and the Arms Rules,1962, because in the event of Parliamentary approval not forthcoming, the new policy would become infructuous. In the sitting of the Committee dated 22nd April, 2010, when the notification of the new Arms Policy came up for brief mention, the Committee reiterated that the Policy should be laid on the Table of both Houses of Parliament and desired that it be referred to the Committee for detailed consideration. The Committee is constrained to note that instead of responding to the suggestions and advice of the Committee, the Ministry of Home Affairs went ahead with the finalization of the revised Arms and Ammunition Policy on 5th April, 2010 and put the same on its website. 8.73 The Committee feels that the notice given for the general public to comprehend and comment upon such a policy of vital national importance is short. The draft Revised Arms & Ammunition Policy should have been given wide publicity in the national and regional dailies, viz. newspapers/weekly, fortnightly, monthly magazines, along with adequate publicity through the electronic media as well and a debate generated to collect the views of the public at large. The Committee also wishes to point out that this policy was put on the website in Hindi after the intervention of the Standing Committee. The Committee observes that such documents of national importance should have been posted on the website both in English and Hindi as per the official language policy of the country. 8.74 The Committee observes that two policy documents – (i) Arms and Ammunition Manufacturing Policy and (ii) Arms and Ammunition Policy for Individuals – were finalized by the Ministry of Home Affairs on 5th April, 2010 and put on the Ministry’s website under the link “Circulars for Public’ disregarding the Committee’s advice. None of the suggestions made by the Committee, except putting the Hindi version of the draft policy on the net, forwarding policy papers to the Members and extending deadline for submission of views/comments, was accepted by the Government. The advice given by the Committee to the Government to follow the standard procedure in giving effect to the changes in the existing policy, was also not heeded to. The policy as finalized was exactly identical to the draft put on the website inviting comments from the public and the Home Minister preferred not to lay copies of the policy documents in Parliament. The two policy documents have been brought into force by the Home Ministry by issuing detailed directives in the garb of advisories to the Secretaries (Home Departments) of all the States and UTs. Curiously enough, the Ministry has enforced the new policy documents by issuing executive instructions to be complied with strictly, without waiting for formal parliamentary approval to the amendments to the Arms Act, 1959 and the Arms Rules, 1962.

8.75 The Committee fails to understand as to why the Government had not felt it necessary to seek formal parliamentary approval before enforcing various new features of the Policy, which included inter-alia amendments to the Arms Act and the Arms Rules even before introducing the amendment Bill and laying the amendment to the Rules. The Government may argue that the revised policy and the instructions issued thereunder do not materially change the provisions of the Arms Act, 1959 and the Arms Rules 1962, but the Ministry of Home Affairs should appreciate the fact that the changes that have been made in the policy and the advisories issued are consequential to the provisions of the Arms Act 1959 and the Arms Rules 1962 and this has been done without getting the changes therein approved by the Parliament. This is against the basic democratic principle of executive’s accountability to the legislature as per the scheme of the Constitution.

8.76 It is a well established parliamentary practice that Ministers make statements in the House in order to keep the House informed of matters of public importance or to apprise the House about Government policy in

164 regard to a matter of topical interest at the earliest opportunity5. In deciding what statements should be made first in the House, a distinction is to be drawn between matters of policy and news. In matters of policy, Govt. should first inform the House. But in the case of news, information can be given to Press before informing the House6.

8.77 The Committee wishes to reiterate that Policy statements should be made by Ministers on the floor of the House, when the House is in session before releasing them to Press or Public7. Where a statement is made outside the House even clarifying the policy already enunciated, the Minister should also make a statement about that in the House at the earliest opportunity8. The day the policy documents were finalized i.e. 5th April, 2010 Parliament was in Session but the Government, for reasons best known to it and in violation of established parliamentary practice, and convention, chose not to lay the policy statements even when the Budget Session of Parliament concluded on 7th May, 2010. In the view of the Committee, the new Arms and Ammunition Policy which has already been implemented – mostly through executive instructions and partly through proposed amendment of the Act and the Rules, yet to be approved by Parliament, amounts to exercise of power by the executive beyond the constitutional mandate. This act of the Ministry of Home Affairs has taken the Parliament and the Committee for granted.

8.78 When the Committee asked the Home Secretary to apprise its Members as to when the Home Minister was going to lay the policy documents on the Table of both the Houses of Parliament and what were the compelling circumstances which prompted the Ministry to announce the Policy through its website when Parliament was in Session and issue advisories/instructions to all the State Governments for implementing the Policy, without waiting for Parliament's approval to the proposed amendments to the Arms Act 1959 and Arms Rules 1962, the Home Secretary merely repeated that he would bring the views of the Committee about laying of the Policy on the Table of both Houses of Parliament, to the notice of the Home Minister. The Home Secretary did not respond to the pointed query as to why the Government hurriedly finalized the policy and asked the State Governments to implement the same. He chose to state in his usual refrain that he would bring the matter to the notice of the Home Minister. Thereafter, nothing was heard from the Home Ministry, nor were the Policy Documents laid on the Table of the Houses, except the fact that the Arms (Amendment) Rules, 2010 were laid on the Table of the Lok Sabha on 10th August, 2010 and in the Rajya Sabha on 11th August, 2010. Subsequently, the Arms (Amendment) Bill, 2010 was introduced in the Lok Sabha on 25th August, 2010. In this context the Committee recalls an observation made by the Home Secretary before it and which has been quoted in para 2.30 of Chapter-II of this Report that it is upto to the Home Minister to decide on laying the Policy on the Tables of the two Houses of Parliament and he wishes the policy to be announced, then he would lay it on the Table of Houses. The Committee deprecates this attitude of the Ministry of Home Affairs in general and the Home Minister in particular in ignoring a six decade old parliamentary practice and convention of first laying policy documents in Parliament and then making them public. This obduracy on the part of the executive has set a bad precedent in the functioning of our parliamentary democracy and the sooner such a trend is reversed, the better it would be for the healthy and harmonious functioning of the two arms of the State.

8.79 Having made the above observations, the Committee is not able to comprehend as to why the Ministry proceeded with the finalization of the policy in a tearing hurry, knowing fully well that the Committee was seized of the subject and was in the process of making suggestions/ observations in the matter. The Committee strongly disapproves the attitude of the Ministry of Home Affairs in ignoring the advice given by it to the Ministry; in repeatedly making evasive statements before it by the Home Secretary; and in justifying the wrong procedure adopted in announcing and implementing the policy.

8.80 The Committee observes that the replies dated 5th and 25th January, 2011, given by the Ministry of Home Affairs are elusive and do not dispel the doubts in the minds of Members of the Committee, such as the urgency shown in the implementation the policy. The Committee observes that the argument of Ministry of Home Affairs that they have only issued an advisory to the State Governments on 6th April, 2010 which

5 Parliamentary Procedure, Law, Privileges Practice & Precedents by Dr. Subhash C. Kashyap op cit.

6 L.S. Deb., dt. 3.12.1971 op cit

7 H.P. Deb., dt. 1.9.1953 op cit; L.S. Deb dated 22.12.67 op cit 8 L.S. Deb., dt. 18.3.1970 op cit.

165 contains instructions about the procedural aspects of grant of arms licences, does not hold water. Though the Ministry contend that the advisories issued to the State Govts. and Union Territories, are merely guidelines, actually these are specific instructions on the subject for strict compliance by the concerned authorities.

8.81 The Committee is of the considered view that the major components of the policy document can be brought into force only by amending the Arms Act and the Arms Rules, but the proposed amendments to the Act and the Rules, do not cover all aspects of the new policy. The Committee observes that while the Arms (Amendment) Bill, 2010 which was referred to the Committee, under Rule 270(b) of the Rules of Procedure and Conduct of Business in the Council of States, for examination and report, sought to give effect to only one component of the new Policy, the Arms (Amendment) Rules, 2010 give effect to another component of the said Policy, whereas the major elements of the Policy had already been brought into force by way of directions to the State Governments and UT Administrations.

8.82 Be that as it may, the Committee is more than convinced that the course adopted by the Ministry of Home Affairs in formulating, finalizing and enforcing the New Arms and Ammunition Policy, is ab initio faulty, inasmuch as the steps chosen by the Ministry were in breach of parliamentary proprieties and conventions. The Arms (Amendment) Bill, 2010 and the Arms (Amendment) Rules, 2010 are consequential to the New Policy. As the Policy Documents have not been laid on the Table of the two Houses of Parliament, which consequently cannot be referred to this Committee by the Presiding Officer, it has taken a conscious decision not to proceed with clause-by-clause consideration of the Bill which would have been a piecemeal exercise in isolation and therefore not desirable.

8.83 Keeping in view the wide ranging implications of the New Policy on the law abiding citizens and its enforcement, mostly through executive fiat, the Committee recommends to the Ministry of Home Affairs that they should put on hold the whole exercise of implementation of the Policy, immediately withdraw the so called Advisories dated 6.4.2010 issued to States/UTs; put the subject in the public domain for wider consultations with the people and their representatives at various levels; take on board all the views and suggestions, including the ones incorporated in this report with a view to making the policy citizen–friendly and thereafter notify a Revised Policy and then lay the same on the Table of both Houses of Parliament. Subsequently, the Ministry should bring a comprehensive Bill to amend the principal legislation and lay the amendments to the Rules after due examination, precedent to the implementation of the Policy.

(e) Report No. 152 (Action Taken by Government on the Recommendations/ Observations Contained in the 136th Report on Revamping and Revitalisation of Civil Defence in the Country)

Linking Civil Defence with Disaster Management

8.84 The Committee hopes that amendment to the Civil Defence Act, 1968 would give fillip to the critical role of Civil Defence organization and train Civil Defence corps as first responder to any disaster situation. The Committee appreciates that government proposes to take up pre-disaster preparedness and prevention aspects for enhancing the capacity of Civil Defence. The Committee desires that early action may be taken in this regard.

Provision for Adequate Number of Training Institutes

8.85 The Committee hopes that the scheme would be completed during the Financial Year 2011-12, as scheduled, without time and cost overruns. The Committee desires that the upgradation of the State Institutes may be completed at the earliest. The States that have not allotted land for the institutes may be persuaded for the purpose. Upgradation of the NCDC may be extended upto March 2012 as sought by the Ministry and upgradation of the college may be completed by then, without fail.

Civil Defence and Panchayati Raj Institutions (PRIs)

8.86 The Committee desires that the Government may complete mid-term evaluation of the scheme by 2011 as scheduled.

166 Role of Civil Defence in Changing Scenario

8.87 The Committee is constrained to note that as against a target of training of 4,280 Civil Defence Volunteers by these master trainers at State level, only 3,267 volunteers have been trained. Since the civil defence apparatus has mainly volunteers at the lower level, the top implementing leadership should be professional so that it can guide volunteers well.

8.88 The Committee takes a serious view of the fact that there are a large number of vacancies in the permanent Civil Defence staff at CD headquarters' and state level CD training institutes. In this scenario, the Civil Defence set up cannot function efficiently. The Committee strongly recommends that early steps may be taken to fill up the vacancies.

Adequate Training and Professionalisation of Civil Defence Apparatus

8.89 The Committee notes that a total of 62,904 volunteers were weeded out after Jan 2009 and 54,389 new volunteers were enrolled, thus leaving a substantial shortfall in the strength of total number of volunteers. The Committee is of the considered view that concrete steps are required to be taken to fill the shortfall, if Civil Defence system is to be strengthened and for its proper functioning. Public awareness campaigns are needed to be undertaken on a regular intervals. A plan may be chalked out to infuse professionalism.

Need for Broad Basing Civil Defence

8.90 The Committee is dismayed to note that in the 36 districts, out of the 100 districts identified for multi-hazard prone districts, Civil Defence setup does not exist. The Committee strongly recommends that steps be taken to raise civil defence infrastructure in these districts as soon as possible. The Committee hopes that after the successful completion of the first phase, and based on the feedback received from the 100 CD districts, the plan to cover all the 600 districts in the country as CD districts in phases may be prepared and implemented soon.

Integrating Civil Defence Organization with NCC/NSS and NYKS

8.91 The Committee is of the view that the vast population of less educated youth still remains untapped. The services of such vast resource in far flung areas should not be ignored. A proper institutional mechanism can efficiently tap this huge potential. The Committee, therefore, strongly recommends that Government should not only make legal framework and institutional arrangement for the purpose, but motivational schemes may also prepared and implemented for attracting the educated as well as the less educated youth.

Public-private Partnership in Civil Defence

8.92 The Committee recommends that the Ministry of Home Affairs may follow up with Department of Revenue for tax-exemption under Income-Tax Act on donation/contributions given by the private/corporate sector to Civil Defence activities and the response of the Department of Revenue ma be informed to this Committee.

(f) Report No. 153 (Action Taken by Government on the Recommendations/ Observations Contained in the 135th Report on Border Fencing & Flood Lighting Projects Along Indo-pak Borders)

Expeditious Approval of Revised Cost

8.93 The Committee desires that the construction work of fencing, road, floodlighting and Border Outposts in Gujarat Sector may be completed as per schedule.

167 Realigning the Fence Towards the Zero Line

8.94 The Committee recommends that there should not be any delay in the completion of the project on shifting of 23, 380 Kms of fencing closure to Zero Line in Ferozpur Sector. The Committee desires to be informed of the time frame by when the work will be completed.

One more Battalion at the Ferozpur Sector

8.95 The Committee desires that Ferozpur Sector may be included among the key locations plans.

Stellar Role of BSF in Guarding the Country’s Frontiers

8.96 The Ministry have stated that the desert/remote area allowance is presently paid to the BSF personnel posted in various areas of J&K and North-Eastern States. The Committee, however, desires that such desert/remote area allowance should be paid to the BSF personnel in all desert/remote areas. There should not be any discrimination in this regard. In fact, the border areas in Gujarat and Rajasthan are sparsely inhabited having harsh climate and are non-negotiable. The personnel posted there deserve special allowance. The committee, therefore, reiterates its earlier recommendation in this regard.

8.97 The Committee has noted that there are only three Kendriya Vidyalayas in border areas of Gujarat and Rajasthan and one is proposed to set up. Since these schools are meant for the children of BSF personnel posted in frontier areas/border areas, they are essential due to lack of sufficient educational infrastructure, in those places. However, considering the large border area in Rajasthan and Gujarat, sufficient number of central schools may be opened as per the requirement.

Logistics Strategy for Border Surveillance and Management

8.98 The Committee takes a serious view of the fact that the Ministry has not commented on the observations of the Committee regarding manning of 60 to 62 Kms. by one battalion which inhibits operational efficiency. The Committee reiterates its recommendation that the Ministry should look into the matter at the earliest. The Committee also desires to be informed of the decisions taken regarding proposed authorization of tractors. In this connection, the Committee also takes note of the fact that tractors, which are mainly used for agriculture purposes may not be very suitable for Border Guarding Forces as they are very slow. It would be better if modern, fast moving and more efficient vehicles are used in place of tractors. Government may consider this and take necessary action in the matter.

Emergency Evacuation in the Bhuj/Naliya Sector

8.99 The Committee does not agree with the contention of the Ministry of Home Affairs that the positioning of one helicopter at Jodhpur would meet the operational requirement at short notice in emergent situation as Gujarat Frontier has a long Border extending upto Barmer Sector. The Government may reconsider the requirement of Helicopter in emergency situation and take strategic decision in the matter. The Government may also consider deployment of some of the helicopters, presently, stationed at Delhi at the strategic positions in Indo-Pak Borders of the country to meet emergency situation.

Expeditious Construction of the Remaining Link Roads

8.100 The Committee takes serious view of the fact that the repair of link roads is taking unduly a long time and construction works are unnecessarily delayed, which is not acceptable. The works may be completed within the next construction season.

Strengthening of the Monitoring Mechanism in the Bhuj Sector

8.101 The Committee is of the view that the tendering process may be completed at the earliest and the Hovercraft be provided without any delay. The Committee feels that frequency of recee by UAVs and hepters may be increased, so that, more vigil can be kept in this porous border area, effectively.

168 Construction of Forward Command Post

8.102 The Committee observes that no tangible progress has been made in regard to the construction of Forward Command Post despite the recommendation made by it in 2008. The Committee during study visits, noticed the necessity of construction of forward command post. The Committee, therefore, feels that the issue of Forward Command Post is strategically very important. An early decision may therefore, be taken in the matter.

Upgrading Amenities for the Tourists

8.103 The Committee observes that nothing has been mentioned about the Action Taken in respect of recommendation concerning inadequate infrastructure and amenities at the Wagah Border. The Committee, therefore, strongly reiterates its recommendation in the matter. The Committee also recommends that developmental work at Retreat Point at Hussainawala be completed within the stipulated time frame and without cost overrun in order to facilitate the visitors.

(g) Report No. 154 [The Border Security Force (Amendment) Bill, 2011]

8.104 The Committee adopts the Bill without any changes and commends for being passed.

8.105 The Committee also suggests that the concerns expressed by the Members of the Committee, as enumerated in Chapter III may be addressed appropriately.

(h) Report No. 155 [The Enemy Property (Amendment & Validation) Second Bill, 2010]

8.106 The Committee has noted that the Enemy Property (Amendment & Validation) Ordinance, 2010 was promulgated on 2 July, 2010 to amend the Enemy Property Act, 1968 in view of the several court judgements, which, according to the Ministry of Home Affairs, have impacted the functioning of Custodian of Enemy Property and defeated the purpose for which the Act was established. Thereafter, the Enemy Property (Amendment & Validation) Bill, 2010 was introduced in Lok Sabha on 2 August, 2010 to replace the Ordinance. However, the Bill could not be passed and, consequently, the Ordinance lapsed. Thereafter, the Bill was withdrawn on 15 November, 2010 and a new Bill, i.e., the Enemy Property (Amendment & Validation) Second Bill, 2010 (hereinafter called 'Second Bill') was introduced on the same day, which is now before the Committee.

8.107 The Committee has also noted that in the Second Bill, certain major changes have been made by the Government as compared to the Ordinance and the First Bill. These changes are contrary to the aims and objectives of the ordinance and the first Bill. In view of the far-reaching consequences of the Second Bill referred to it, the Committee has taken the views of the public, State Governments and other stakeholders, including the expert opinion of Shri Ram Jethmalani.

8.108 The Committee has also noted from the material available on record before it that the Second Bill before it, take away the jurisdiction of all the Courts completely and then in the matter of divesting of enemy property, the enemy property will be divested only to the owner or, if the owner is dead, to any lawful heir and that the claimant shall have to establish, in accordance with the law, that he is the lawful heir. According to the Chief Secretary, Uttar Pradesh, the Bill is not in the interest of the State and it takes away the properties, which are vested in the Custodian and which are not validly reversible in the owner or the heirs. According to the Uttar Pradesh Government, this Bill may result in giving undue benefit to some individuals. The Committee, in this connection, would like to mention that the majority of the enemy properties are situated in Uttar Pradesh and out of them, majority of the properties pertain to one single case. The Chief Secretary, Uttar Pradesh is on record to say that the 'Sanad Kabooliyat' under which many of the enemy properties were given by the British Government, after First War of Independence in 1857, says that as long as they had showed constantly good faith, loyalty, zeal and attachment to the British Government, the Sanad Kabooliyat would remain in force; otherwise, it will annul the right and title conferred upon such person and his heirs. The Chief Secretary was also on record to say that with the India Independence Act, 1947, the British Government came to be replaced by the Government of India and, therefore, the act of good faith and allegiance was to the Government of India

169 and if any one breaches that or join the enemy, all the land would revert to the Government as per the Sanad Kabooliyat.

8.109 In regard to the Sanad Taluqdari, the Committee sought the comments of Ministry of Law & Justice on the issue of applicability of the Sanad Taluqdari in view of the enforcement of the provisions of the Constitution of India.

8.110 According to the Department of Legal Affairs, Articles 294 and 295 of the Constitution of India deal with succession to property, assets, rights and obligations. As per Articles 294 and 295, properties and assets which vested in His Majesty for the purposes of the Government of the Dominion of India shall, under this Constitution, vest in the Union. Properties and assets which vested in His Majesty for the purposes of the Government of each Governor’s province shall vest in the corresponding State. These Articles make provision for succession by the present Government of the Union and the States to property, rights, liabilities and obligations vested in the former Governments.

8.111 The Department of Legal Affairs further opined that Article 363 (1) bars all courts from having any jurisdiction in any dispute arising of a pre-constitution treaty, agreement, covenant, engagement or sanad executed between a Ruler of an Indian State and the Government of India, or in any dispute in respect of any right accruing under or any liability or obligation arising out of any of the provisions of the Constitution relating to any such treaty etc. However, there are two conditions for the application of the Article 363 (1). Number one, the covenant with the Ruler must have been entered into before the coming into force of the Constitution, and second, the covenant must continue in force after the commencement of the Indian Constitution.

8.112 Summing up the above opinion, the Department of Legal Affairs maintained that in general sanad is valid as per the provision under Article 363 of the Constitution of India. However, while examining the status of “sanad taluqdari” in any particular individual case, the provisions of Articles 294 & 295 of the Constitution may also be kept in view.

8.113 The Committee also flagged the issue with the then Home Secretary whether the revised Second Bill has been brought to favour some individuals. He informed the Committee that it is not to give the benefit to any specific individual or otherwise but this is not convincing to the Committee. It is with reference to a particular Supreme Court judgement, which had been made earlier. However, on repeated questions put by the Committee to the Home Secretary as to the specific reasons due to which the revised Second Bill has been brought in the Parliament, the Committee could not get convincing answer. In fact, the Home Secretary could not answer as to what happened after the lapse of the Ordinance and before bringing the Second Bill.

8.114 The Committee, in this connection, also would like to refer to the remarks made by Shri Ram Jethmalani on both the Ordinance and the Second Bill. He felt that the Ordinance displayed the honesty of the Government of India. He also referred to Para 4 of the Statement made by the Minister of Home Affairs in Lok Sabha explaining the circumstances, which necessitated the immediate legislation by proclamation of the Ordinance. The relevant extract is as under:

"The Government decided that if immediate remedial measures are not taken, the prime objective of the Act would be defeated and immovable enemy properties worth hundreds of crore of rupees would fall in the hands of the persons, who do not have any legitimate claim over these enemy properties. It was, therefore, proposed to bring about amendments to the Enemy Property Act, 1968 to clarify the legislative intent and strengthen the hands of the Custodian and the Central Government and also to prevent the courts from issuing any orders for divestment of the enemy properties."

8.115 The Committee also notes that the noted jurist Shri Ram Jethmalani has also stated that this was the finding of the Government itself, which was presented in the Ordinance to clarify the legislative intent and strengthen the hands of the Custodian and the Central Government to prevent the Courts from issuing any orders for divestment of these properties.

170 8.116 The Committee also takes note of the opinion expressed by Shri Ram Jethmalani that an heir can only get what the propositus had. When a person is dead, his heir gets what he owned. Even if he is an Indian national and the heir of his father, he gets what the father had, but if the father did not have the property, the property belonged to the Indian nation, he gets zero.

8.117 The Committee therefore strongly feels that the enemy properties worth crores of rupees in any case, should not go in the hands of those, who do not have any legitimate claim over these enemy properties. The Committee would like to stress that an heir should get only what the propositus had.

8.118 The Committee also takes note of the submissions made by the Chief Secretary, State Government of Uttar Pradesh that the list attached in the Supreme Court was different from the list for which the succession had been granted by the civil court, and, therefore, not covered under the disposition of succession. The Committee does not understand why the Custodian of Enemy Property did not take cognizance of this and act accordingly. This matter needs to be thoroughly examined.

8.119 The Committee also takes cognizance of the matter, as stated by the officers of the Uttar Pradesh Government that he applied for succession in his plaint before the civil court, Lucknow under the Oudh Estate Act instead of under Personal Law. It was later on confirmed by Shri M.A.M. Khan that he sought declaration of succession under Oudh Estate Act instead of Cr.PC Act. The Committee also takes note of the fact that in the succession case, Uttar Pradesh Government was not made a party. Subsequently, the matter was mysteriously taken up in Mumbai High Court, instead of the High Court in Uttar Pradesh, though the properties are situated in Uttar Pradesh. When asked, Shri M.A.M. Khan replied as under:—

“Yes, I am telling the exact truth to you. There were two reasons. Number one, because we felt that there were so many cross currents in U.P. that there could be an attempt at some kind of convolution.……… The other reason was the large number of correspondence between the Custodian and my mother, my family and I. My real uncle was acting as attorney. I have only one real uncle. Somehow, an impression has been given that I have three real uncles. I have one real uncle and two step-uncles. My real uncle was a Barrister and he died in 1991. But, I filed this because all the correspondence, all the papers were with the Custodian and we felt that it would be easier for us to obviate the position where the Custodian would make an excuse to say, “I have not got papers and I have to go back to Bombay and get them.”, and this would lead to unnecessary prolonged delay because litigation takes huge amount of time. The matter was argued about jurisdiction. The matter was admitted”.

8.120 Besides, these arguments, the Committee notes a peculiar situation, wherein, it appears, that the whole issue has been messed up. The Ordinance and the First Bill, at least, met the expectation and satisfaction of some interested people and even the Government strongly felt it the right course at one time. However, the Second Bill fails on all counts so far as satisfaction and expectations of interested people is concerned. Disagreement from the group, which supported Ordinance and the First Bill, is understandable, but strangely, the Bill has also disapproval, in strong words, by the very individual, who was the main party in the Supreme Court. The Committee, therefore, fails to understand what the Government wants to achieve by bringing this Second Bill.

8.121 The Committee, in its meeting held on 24 October, 2011, had a detailed discussion on the report circulated and on the question of considering the Bill, clause by clause. The Members of the Committee unanimously felt that it was not convinced by the spirit behind the provisions of the Enemy Property (Amendment & Validation) Second Bill, 2010. The Members also felt constrained to note that the Home Secretary could not explain the reasons as to why the Second Bill was brought before the Parliament replacing the earlier Bill. The Home Secretary could not give a convincing reply to the Committee on some provisions of the Second Bill. The Committee could not get a convincing reply as to what necessitated the Government to go back on the statement and what prompted to bring the second Bill, which is contrary to the objective of the First Bill and Ordinance. The Members of the Committee unanimously felt that there is a need on the part of the Government to bring forward a fresh Bill in the Parliament in place of the Enemy Property (Amendment & Validation) Second Bill, 2010. The Members also unanimously felt and agreed that there was no need to go ahead with the clause-by-clause consideration of the Bill and decided that the Committee should recommend to

171 the Government to bring forward a fresh Bill incorporating the views of the Members, observations of the Committee made in the preceding paragraphs. The Members, however, unanimously decided that the Committee may make recommendations for improvement of the office of the Custodian of Enemy Property and also to complete the process and verification of enemy properties at the earliest.

8.122 The Committee, accordingly, recommends that the Government may withdraw the present Bill, i.e., Enemy Property (Amendment & Validation) Second Bill, 2010 and bring forward a fresh Bill before the Parliament incorporating the views and observations of the Committee. The Committee makes the following recommendations for improvement of the office of Custodian of Enemy Property:

(i) The Committee has been given to understand that the Office of the Custodian of Enemy Property is facing severe staff crunch. Practically, there are very few officers manning the Office due to which the process of verification, etc., of enemy properties could not be completed till now. Even though the Central Government has issued a notification requesting all the State Governments to nominate District Magistrate/District Collector as the Deputy Custodian, the Committee has been given to understand that there is not much progress in the matter and States have not taken much action. The Committee is also constrained to note, and the then Home Secretary himself admitted before the Committee, that the Office of the Custodian of Enemy Property has so far been given least priority. He further went on to say that there is a vaccum in the entire system in which the Custodian works. The staffing pattern in the Custodian's office is abysmally low. Similarly, the Chief Secretary, West Bengal also stated likewise. The same situation prevails in other States also. This is a very sorry state of affairs and the Committee takes it very seriously. The Committee takes note of the assurance given by the Home Secretary that immediate action would be taken to appoint the staff for the Office of Custodian of Enemy Property instead of depending upon the State Government. On the query made to the Ministry of Home Affairs as to whether workload was assessed before appointing District Magistrates/District Collectors as Deputy Custodian of Enemy Properties, the Ministry stated that the assessment of additional work load on account of appointment of District Magistrates/District Collectors as ex-officio Deputy Custodian was not made as they were already carrying out similar work in the past. The Committee fails to understand as to why the workload assessment was not made. The Ministry further informed that District Magistrates/District Collectors are free to engage retired District Revenue officials; or deploy other staff from other sections from time to time depending on the workload for assisting him in verification/identification of enemy properties in the area falling within their respective districts. The Custodian of Enemy Property would consider requests from State Government/UT Administrations for meeting expenditure on hiring of such additional manpower by the concerned DMs/DCs. The Committee however feels that this is all ad hoc arrangement. Now that fresh vacancies are being created, the Committee hopes that the proposal made to Ministry of Finance would have been accepted by now and the process of recruitment would have started. The Committee desires that the recruitment process may be completed at the earliest and the staff be in place soon. The Committee would like to review the progress of recruitment of staff and the process of enemy properties without having any regard to this Bill. The Committee desires to be informed of the progress periodically.

(ii) The Committee was informed that it would take three or four years to complete the verification and disposal and for winding up of the office of Custodian of Enemy Property. The Committee, however, feels that if the things move at the current pace, it may take even more than four or five years. The Committee takes note of the fact that Pakistan had long back seized properties of Indians and disposed them off in breach of the mutual agreement. It, however, does not mean that the enemy properties and the Office of the Custodian of Enemy Property should remain in perpetuity. The Committee, therefore, desires that a time-bound plan may be drawn and the entire process of identification of enemy properties and disposal may be completed within a stipulated time.

172 (i) Report No. 156 (Action Taken by Government on the Recommendations Contained in the 142nd Report on Implementations of Central Scheme of Modernisation of Prison Administration)

Shifting of the Scheme of Modernisation of Prison Administration from Non-Plan to Plan

8.123 The Committee takes note of the fact that the second phase of the scheme has not yet been finalized nor approved. The matter is still under active consideration as to whether it should be made under non-plan or plan expenditure. The Committee is of the view that the Government should take a positive view in regard to taking up the second phase of the scheme from 2012-13. Whether the scheme continues under non-plan expenditure or shifted to plan-expenditure head, it is left to the government to decide but the Committee desires that scheme should be continued from next financial year.

Allocation of Funds for Modernization of Prison Administration from NLCPR

8.124 The Committee is of the view that the Ministry of Home Affairs should consider the financial constraint of the North-eastern States and also examine the possibility of reducing the States’ contribution of fund under the scheme from existing pattern of 25 per cent to 10 per cent. The Committee also desires that the Ministry of Home Affairs should persuade the State Governments of North-East to allocate funds for modernization of prison administration from NLCPR.

Spirit of Correction and Reformation

8.125 The Committee observes that most of the State Government are conscious of the idea of prison as a place for correctional and reformation. In this regard, the Committee appreciates the steps taken by the Government of Punjab where jails are now being called a “Sudhar Ghar” i.e. a place for physiological transformation of offenders. The Committee feels that other State Government should follow the suit and impart the jail officers and staff requisite training and skill with the intention to treat jails not just a place of custody but also a place for reformation. The Committee also recommends that steps be taken to ensure that the advisories issued are strictly implemented at the ground level.

Evaluation of the Scheme

8.126 The Committee is not satisfied with the replies of the Ministry and feels quite concerned to note that the BPR&D had not requisite staff and expertise to evaluate the Central Scheme of Implementation of Modernisation of Prison Administration despite the fact that it has undertaken several research studies of high calibre. The Committee does not buy the argument given by the Ministry. The Committee is of the considered view that BPR&D should be provided the requisite staff to undertake this kind of evaluation in future. However, the Committee hopes that the Ministry of Home Affairs would examine the observations of the Ernst & Young and would leave no stone unturned in the implementation of the recommendations made by the expert body.

Shortfall in the Achievement of Physical Targets

8.127 The Committee understands that the unspent amount to the tune of Rs. 21.76 crore, which is only a marginal gap for this near achievement of the financial target, is not reflected in the physical targets because against the total number of 162 jails to be constructed under the scheme, only 119 were constructed and out of that, only 87 jails got operationalized. Further, against a total target of 1731 barracks, only 1572 barracks were constructed and out of that, 1435 got operationalized. Again, against the target of 8803 staff quarters, only 8568 staff quarters were actually constructed and out of that only 8304 staff quarters got occupied. This is a sorry state of affairs. Now the basic question arises as to whether the remaining unspent amount to the tune of Rs. 21.76 crore would be sufficient to meet the expenditure for the remaining projects. Obviously not, because the delayed projects would by now have undergone cost over run. Under the circumstances and as also accepted by the Ministry of Home Affairs, the whole matter needs a comprehensive review. The Committee therefore recommends that the entire issue, including requirement of fund in the 2nd phase of the scheme as well as funds required for completion of pending unfinished works, may be comprehensively reviewed at the earliest. The Committee also desires that the Ministry of Home Affairs may undertake a detailed review of

173 lapses in the implementation of the projects under the scheme in the first phase and apprise the Committee of the conclusions so arrived.

Overcrowding in Prisons

8.128 The Committee is not happy to learn that the overcrowding has not decreased in district and central jails even after completion of the 1st phase of the scheme. The Committee desires that the Ministry of Home Affairs should take stock of the latest status of overcrowding in the districts and central jails and assess the requisite fund for combating the problem of overcrowding there for ensuring the humane condition for the inmates as prisoners are, after all, also the human beings. The Committee strongly recommends that requisite funds may be provided in the second phase for capacity addition in the district and central jails.

Proper Implementation of Advisories

8.129 The Committee appreciates the efforts undertaken by the Ministry of Home Affairs for printing and circulation of Compendium of Advisories on Prison Administration. However, the Committee feels that though everything appears to be good on paper, but on a visit to any jail, one does not get a good impression of the conditions there. The Committee recommends that the Central Government must give impetus to the proper implementation of the advisories, including model prison manual.

Model Prison Manual

8.130 The Committee also takes note of the fact that several States have yet to revise the prison manuals on the basis of Model Prison Manual. The Committee recommends that all the States and UTs should be advised to adopt the model prison manual without delay.

Effective Implementation of Legal Provisions

8.131 The Committee notes the varying responses from the State Governments. While some States are invoking the provisions under Cr. PC effectively, others have issued instructions for implementation. The Committee is of the considered view that effective implementation of legal provisions viz. Section 436 A, 436 (i) and 265 to 265 L of the Cr. PC 1973 would go a long way in reducing the overcrowding and languishing of under-trials in various jails of the country. Therefore, nationwide awareness programme of these legal provisions should be launched. In this regard, the “National Mission for Delivery of Justice” launched by Union Ministry of Law & Justice is a step in the right direction which needs to be further taken to the State Governments. The Government should start special fast track courts for petty offences.

Effective Implementation of Model Prison Manual

8.132 The Committee is surprised to observe that most of the State Governments are yet to adopt the Model Prison Manual which is a stepping stone towards prison reforms. The Committee underscores the significance of Model Prison Manual in maintaining uniformity in prison administration. The Committee recommends that the Ministry of Home Affairs should vigorously pursue the matter with the State Governments and ensure the effective implementation of the Model Prison Manual and if needed suitable scheme for assisting State Governments, as stated by the State Government of Tripura, may be formulated to ensure effective implementation of the manual.

Separate Jail for Women

8.133 The Committee desires to highlight the need for at least one separate jail for women in each State with basic civic amenities. The Committee, on the other hand, finds that there are only 18 jails for women in the country and many of the States have either separate enclosures or separate wards for women which does not solve the purpose keeping in view the problems being faced by women prisoners. The Committee strongly recommends for setting up of at least one separate jail for women in each State with basic amenities.

174 Construction of Modern Chambers

8.134 The Committee notes that the construction of the modern chamber for visitors in most of the States is either at contemplation/proposal/examination stage. The Committee, therefore, recommends that the Union Ministry of Home Affairs should vigorously pursue the matter with the State Governments to ensure implementation on the ground level. Moreover, in some States viz. Punjab, Haryana, Manipur, Jharkhand, etc., implementation of this recommendation has not been taken up due to non availability of fund and also due to the fact that initiative to commence the work is dependent upon the funds to be released in the second phase of the scheme, which underscores the need for continuation of the scheme. The Government therefore, should note this fact and ensure the commencement of the second phase of the Modernisation of Prison Administration at the earliest. In the second phase, emphasis should be laid on the construction of modern visitor chambers.

Telephone Facility for Inmates

8.135 The Committee reiterates its recommendation made in 142nd Report that telephone facilities may be provided in select jails on trial basis to inmates as the measure would check illegal use of mobile in the prison and also track the connection of hardened criminals. Wherever necessary, Jammers may also be installed.

Wages of Prisoners

8.136 The Committee observes that the daily wages of the convicted prisoners are meager, as low as Rs. 8/- to 20/- in the State of Punjab, only a few States give good wages viz. in Himachal Pradesh prisoners are provided Rs. 120/-. The Committee recommends that all State Governments be instructed to bring forth suitable revision of the wages to the prisoners in all the jails. The Committee also recommends that the term ‘incentives’ be used in jails instead of the word ‘wage’ as is used in Andhra Pradesh because incentive is a better term for payment to the prisoners in lieu of work. The Committee further desires that the steps taken to encourage under-trials to work in the jails be also furnished by the State Governments. The Committee also endorses the view of the State Government of Tripura that suitable specific uniform policy for revision of wages to prisoners may be formulated by the Union Government. Initiatives like formation of self-help groups of inmates as promoted in West Bengal may also be replicated in other States.

Literacy Among Prisoners and Vocational Training

8.137 The Committee feels that facilities of access to education needs to be examined thoroughly because undertrials in the age group of 18 to 30 years constitute a huge section of the prisoners. The Committee recommends that the undertrials should also be motivated to pursue vocational education of their choice.

8.138 The Committee appreciates the efforts made by various State Governments in imparting literacy including higher education through IGNOU to the prisoners. It, however, appears that all the states are not providing vocational/technical education to the prisoners. The State Governments of Madhya Pradesh and NCT of Delhi are doing some pioneering work in imparting Engineering courses and hopes that other State Government would follow the suit and make arrangements for similar professional courses for the prisoners. The Committee further desires that the Ministry of Home Affairs should pursue with other State Governments including Manipur and Nagaland to put in place adequate infrastructure for introducing literacy programmes in various jails of the States.

Setting up of the ITIs

8.139 The Committee notes that several States have not taken any steps so far to set up ITIs in jails, though, certain States has agreed in principle. Some States would like to take up this in the second phase of the scheme. The Committee is however, happy to note that Rajasthan has set up two ITIs in central jails at and Ajmer. The Committee recommends that all other States may replicate the work done by Rajasthan. The Ministry of Home Affairs may take up the matter of setting up of the ITIs in various jails in the country. A blue print for setting up of ITIs in jails may be prepared and circulated amongst States.

175 Grievance Redressal System

8.140 The Committee, in its 142nd Report, made the recommendation for a ‘Mobile Petition Box’. Many States have stated that Petition/complaint boxes have been provided in jails as grievance redressal mechanism. But this may not prove convenient to prisoners living in various cells, barracks and enclosures of the jails to raise their voice in writing. The Committee, therefore, reiterates its recommendation that State Governments may set up Mobile Petition Box also, besides fixed complainant box, for seeking suggestions and complaints, as is in practice in jails in Delhi. The Committee is of the further view that the Ministry of Home Affairs should also pursue the States to adopt a transparent grievance redressal mechanism in every jail.

Vacancies

8.141 The Committee takes a serious note of the staff scarcity in the jails, as has been admitted by Home Secretary. The Committee is anguished to observe that despite its recommendation for filling up of vacancies of prison staff, no concrete steps have been taken either by State Governments or by the Central Government. Even after lapse of more than two years, the State Governments are in the process of recruitment. This is a pathetic condition which needs immediate correctional measure. The Committee recommends that the Ministry of Home Affairs should take stock of the vacancies in various jails of the country and pursue the matter with the State Governments to fill-up the vacancies within a time frame. The Committee feels that the Ministry of Home Affairs should not just act as nodal agency in procuring the details of vacancies of staff and officers but pursue the State Governments to set a time-frame to fill up the vacant posts. The Union Ministry should itself set an example by promptly filling up the vacant posts of prison staff and officers in UTs. Government of Delhi may take immediate steps to fill up the vacancies of doctors in the Tihar Jail.

Open Jail

8.142 The Committee notes that in some States open jails have been set up and functioning successfully, however, some states including bigger States like Uttar Pradesh do not have open jail. The concept of open jail is very good from the standpoint of correctional philosophy. The Committee is of the considered view that jail should become correctional centres rather than a place of condemnation. The Committee desires that the concept of open jails may be given emphasis in the second phase of the scheme.

Drugs in Jail Premises

8.143 The Committee is surprised to note that no State Government is conceding the reported facts about the nexus between officials of the jails and supply and use of drugs inside the jails. However, pre-cautionary measures must be put in place against such possible nexus and as part of this measure, drug-addict prisoners be segregated on the very first day of the admission to the jail as being done in Tihar Jail, Delhi. The Committee further recommends that the ‘Prison-Intelligence cum Vigilance Wing’ must be created in each jail as a continuing vigilance mechanism to guard against the jail officials-inmates nexus. Steps may also be taken to prevent drug trafficking by use of sniffer dogs and advanced modern devices.

Shifting of Prisons out Side Cities

8.144 The Committee is of the considered view that one of the ways of modernization of prison administration is shifting of prisons from the existing congested sites in the cities to the open area outside the cities. Presently, many of the jails across the country are facing not only the problem of overcrowding but most of them are not adequately equipped and facilities available there are not up to the mark. Keeping in view the sorry state of jails and the sufferings of the inmates, the Committee recommends that the Ministry of Home Affairs may pursue the matter with the State Government for shifting of jails from the existing sites to outside the cities and the proceeds received from the sale of existing valuable sites of the jails may be utilized for improving the condition of prisons with modern facilities which would go a long way in combating the problems being faced by the prison administration. The Committee is also of the view that the Ministry of Home Affairs should suggest the State Governments to consider undertaking the modernization programme of the prison under the public private partnerships.

176 Funding of Modernization of Prison Administration from International Agencies

8.145 The Committee is of the view that the Ministry of Home Affairs may explore the possibility of approaching international financial institutions for getting aid/grant/soft loan for modernization of prison administration in the country.

Non-allocation of Fund to the Northern States

8.146 The Committee desires to know the criteria adopted by the Thirteenth Finance Commission for allocation of fund amounting to the tune of Rs. 609 crore for up-gradation of prisons. The Committee also desires to be apprised of the reasons for not allocating any fund for other States for modernization of the prison administration. The Committee would further like to know the alternative measures proposed to be undertaken to assist other States lagging behind in the prison administration for financing them.

General Recommendations

8.147 The Committee observes that in the emerging situation, prison modernization is very important and the direction appears to be correct and good, but, despite that, the number of under-trials remaining in prisons for quite considerable time is a matter of serious concern. The committee is of the view that Home Ministry should take forward prison reforms, provisions of the Fast Track Courts, so that, cases could be expedited and young people could be released.

8.148 The Committee may be informed of the modules prepared by BPR&D and the Institute of Correctional Administration and the action taken by the Ministry thereon.

VII. Secretariat

8.149 The Committee Section (Home Affairs) headed by an Assistant Director, constitutes the Secretariat of the Committee. Joint Secretary and a Joint Director remained in-charge of the Section.

8.150 To assist the Committee in its work, material received from the Ministries under its jurisdiction i.e., Home Affairs and DoNER, as also from other organizations and individuals was studied, and relevant points were culled out. Questionnaires for written/oral replies were prepared for use of the Committee.

8.151 The Secretariat also studied material like Parliamentary Debates, answers to Parliamentary Questions, Budget Estimates, Economic Survey, Outcome Budget, Mid-Term Appraisal of the Eleventh Five-Year Plan, Books, Journals, and Newspapers etc, relevant to the subject under examination of the Committee. The Secretariat also downloaded study material from websites on various subjects for use of Committee Members and preparation of reports.

8.152 The work relating to drafting, consideration and approval of draft reports by the Committee alongwith their presentation/laying, printing and distribution were also undertaken by the Secretariat.

177

ANNEXURE-X (See Para 8.7)

Meetings of the Committee during the year 2011 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

1. 05.01.2011 0.48 (i) Appraisal of the reference of the Enemy Property (Amendment and Validation) Second Bill, 2010 (as introduced in Lok Sabha on 15th November, 2010 and pending therein) to the Committee on Home Affairs, on 30th December, 2010, for examination and report thereon by 15th February, 2011.

(ii) Appraisal of the decision of Hon’ble Chairman on the issues raised relating to the Arms (Amendment) Bill, 2010.

(iii) Further hear the Home Secretary on the New Delhi Municipal Council (Amendment) Bill, 2010 and hold discussion thereon.

Further discussion on the New Delhi Municipal Council 13.01.2011 2. 0.25 (Amendment) Bill, 2010.

3. 24.01.2011 1.00 (i) Further discussion on the New Delhi Municipal Council (Amendment) Bill, 2010

(ii) Consideration of proposal for seeking further extension of time upto the last day of the first week of first part of Budget Session, 2011, for presentation of report on the Bill; and

(iii) Consideration of proposal for seeking further extension of time upto the first day of the last week of second part of Budget Session, 2011, for presentation of report on the Arms (Amendment) Bill, 2010.

4. 02.02.2011 1.25 (i) Apprising the Committee about the extension of time to the Committee for presentation of report on the Enemy Property (Amendment and Validation) Second Bill, 2010 by the Hon’ble Chairman, Rajya Sabha upto 6th April, 2011.

(ii) Presentation of Home Secretary on the Enemy Property (Amendment and Validation) Second Bill, 2010 and discussion thereon.

5. 14.2.2011 0.20 (i) Apprising the Committee about further extension of time for presentation of its reports on the New Delhi Municipal Council (Amendment) Bill, 2010 and Arms (Amendment) Bill, 2010 upto 25.02.2011 and 18.04.2011 respectively.

(ii) Consideration and adoption of draft 148th Report on New Delhi Municipal Council (Amendment) Bill, 2010.

178 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

6. 07.03.2011 0.15 Obituary reference of passing away of Shri Arjun Singh.

7. 08.03.2011 1.20 (i) consideration of proposal for seeking further extension of time upto 10th June 2011, for presentation of report on the Arms (Amendment) Bill, 2010; and (ii) consideration of proposal for seeking further extension of time upto the first day of the last week of Monsoon Session 2011 of Parliament for presentation of report on the Enemy Property (Amendment & Validation) Second Bill, 2010. (iii) presentation of the representatives of National Association for Gun Rights, New Delhi on the Arms (Amendment) Bill, 2010; and (iv) Internal discussion on the Arms (Amendment) Bill, 2010.

8. 15.3.2011 0.40 Internal discussion on the Arms (Amendment) Bill, 2010.

9. 15.4.2011 1.00 Consideration and adoption of the draft 149th & 150th Reports on:— (i) The Action Taken by the Government on the observations/recommendations contained in the 145th Report on DFG (2010-11) of the Ministry of DoNER; and (ii) The Action taken by the Government on the observations/recommendations contained in the 144th Report on DFG (2010-11) of the Ministry of Home Affairs.

10. 25.04.2011 0.45 (i) Consideration and adoption of One Hundred and Fifty- First Report on Arms (Amendment) Bill, 2010; and (ii) Constitution of Sub-Committee on the Enemy Property (Amendment & Validation) Second Bill, 2010.

11. 03.05.2011 1.45 Interaction with the Indonesian Parliamentary Delegation led by Hon. Mr. H. Chairuman Harahap, Chairman of Commission II of the House of Representatives of the Republic of Indonesia.

12. 11.05.2011 0.15 (i) Consideration and Adoption of draft One-Hundred and Fifty Second Report on Action Taken by Government on the recommendations/ observations contained in the One Hundred and Thirty Sixth Report on Revamping and Revitalisation of Civil Defence in the Country; and (ii) discussion on future programme.

179 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

13. 2.6.2011 1.25 Presentation of the Home Secretary on the following subjects: (i) ‘The Threat Perception of Terrorism in the Country’ as part of the examination of the subject “Internal Security: Cross- Border Terrorism, Infiltration and Coastal Security”; and (ii) Action Taken by the Ministry of Home Affairs on the recommendations contained in 137th Report on ‘Rehabilitation of J&K Migrants’.

14. 13.06.2011 1.55 Presentation of the Home Secretary on the following subjects:— (i) ‘The Threat Perception of Terrorism in the Country’ as part of the examination of the subject “Internal Security: Cross- Border Terrorism, Infiltration and Coastal Security”; and (ii) Action Taken by the Ministry of Home Affairs on the recommendations contained in 137th Report on ‘Rehabilitation of J&K Migrants’.

15. 20.06.2011 1.45 (i) Apprising the Committee Members about the permission by Hon’ble Chairman, Rajya Sabha for the visit of the Committee to Hyderabad, Andhra Pradesh, tentatively, from 4th to 7th July 2011. (ii) presentation of the Home Secretary on the following subjects:— (a) Security at Airports in the country; (b) Working of Immigration Office in the Ministry of Home Affairs; and (c) Disaster Management in the country.

16. 30.6.2011 1.25 (i) Apprising Committee Members about tour programme to Hyderabad from 4th to 7th July, 2011; and (ii) consideration of proposal for seeking extension of time to present Report on Enemy Property (Amendment) Second Bill, 2010 upto the first week of winter session. (iii) Presentation of the Secretary (BM) on the following subjects:— (a) Security at Airports in the country; (b) Working of Immigration Office in the Ministry of Home Affairs; and (c) Disaster Management in the country. 17. 19.7.2011 1.05 (i) Informing the Committee about extension of time to the Committee for presentation of report on the Enemy Property (Amendment and Validation) Second Bill, 2010 upto 31st August 2011 by Hon’ble Chairman, Rajya Sabha has granted (ii) Presentation of the Secretary, Ministry of DoNER, on the Infrastructure Projects and Economic Development in NE Region.

18. 20.07.2011 0.15 Assembly at 10.00 A.M. in CR-A, PHA for departing for IGI Airport, New Delhi to assess the working of Immigration Office, Security arrangements and disaster management at the airport.

180 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

19. 27.7.2011 0.25 consideration and adoption of the 153rd Report on Action Taken by Government on the recommendations/ observations contained in the One Hundred and Thirty Fifth Report on Border Fencing and Floodlighting Projects along Indo-Pak Border. 20. 23.09.2011 1.00 (i) Presentation of the Home Secretary on the Border Security Force (Amendment) Bill, 2011 and (ii) to decide its future programme

21. 30.09.2011 1.50 (i) Presentation of Home Secretary on ‘Internal Security: Series of recent Bomb Blasts in the country including Mumbai, Delhi and Agra and follow-up investigation-operations’; and

(ii) Hearing of the views of Shri Ram Jethmalani, Member, Rajya Sabha on the Enemy Property (Amendment and Validation) Second Bill, 2010.

22. 10.10.2011 2.30 (i) Obituary reference of passing away of Dr. Ram Dayal Munda, MP, Rajya Sabha; and (ii) Informing the Committee Members about extension of time to the Committee for presentation of report on the Border Security Force (Amendment) Bill, 2011 upto 30 October, 2011 by Hon’ble Chairman, Rajya Sabha (iii) further hearing the Chief Secretary, NCT of Delhi on the Enemy Property (Amendment and Validation) Second Bill, 2010; and (iv) hearing of Shri Mohammad Amir Mohammad Khan, the erstwhile Raja of Mahmoodabad, on the Enemy Property (Amendment and Validation) Second Bill, 2010.

23. 14.10.2011 2.40 (i) Obituary reference of passing away of Shri Silvius Condpan, MP, Rajya Sabha. (ii) In-house discussion on (a) the Enemy Property (Amendment and Validation) Second Bill, 2010; and

(b) Border Security Force (Amendment) Bill, 2011.

(iii) Clause-by-clause consideration of (a) the Enemy Property (Amendment and Validation) Second Bill, 2010 (only clarification was sought by the Member from Home Secretary, inspite of the agenda decided earlier); and (b) Border Security Force (Amendment) Bill, 2011.

(iv) Further clarifications of Home Secretary on recent bomb blasts in Mumbai, Delhi and Agra alongwith the Chief Secretary, NCT of Delhi, Chief Engineer, PWD (Delhi Government)

181 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

24. 24.10.2011 0.44 .(i) Consideration and Adoption of draft 154th report on Border Security Force (Amendment) Bill, 2011; and (ii) Consideration of the Enemy Property (Amendment and Validation) Second Bill, 2010 clause-by-clause and draft report on the Bill.

25. 08.11.2011 1.20 Hearing the Home Secretary on Action Taken Replies on the recommendations contained in 142nd Report on Implementation of Central Scheme of Modernisation of Prison Administration furnished by the Ministry of Home Affairs.

26. 12.12.2011 1.00 Consideration of the reference of the Citizenship (Amendment) Bill 2011 (as introduced in Rajya Sabha on 8th December, 2011 and pending therein) to the Committee on Home Affairs, on 9th December, 2011, for examination and report within three months and interaction with the Indonesian Parliamentary Delegation led by Mr. H. Adang Daradjatun, Chairman of Special Committee on Social Conflict of the House of Representatives of the Republic of Indonesia.

27. 20.12.2011 0.45 (i) consideration and adoption of draft 156th Report on the Action Taken by the Government on the recommendations contained in the 142nd Report on the Implementation of Central Scheme of Modernisation of Prison Administration; and (ii) Presentation of Home Secretary on the Citizenship (Amendment) Bill, 2011

28. 28.12.2011 0.10 Discussion to decide its future programme.

182 ANNEXURE-XI (See Para 8.8) Meetings of the Sub-Committee on Enemy Property (Amendment and Validation) Second Bill, 2010 during the year 2011 Sl. Date of Duration No. Meeting Hrs. Mts. Subject

1. 11.05.2011 0.15 Preliminary discussion on the Enemy Property (Amendment and Validation) Second Bill 2010.

2. 20.05.2011 1.10 Hearing of the Home Secretary and Custodian of Enemy Property in India on the Enemy Property (Amendment & Validation) Second Bill, 2010.` 3. 19.7.2011 0.40 (i) Informing the Members about the extension of time to the Committee for presentation of report on the Enemy Property (Amendment and Validation) Second Bill, 2010 upto 31st August 2011 by Hon’ble Chairman, Rajya Sabha.

(ii) Hearing of the Chief Secretary of Goa on the Enemy Property (Amendment & Validation) Second Bill, 2010. 4. 27.07.2011 1.40 Hearing of the views of Chief Secretaries of NCT of Delhi, West Bengal and Uttar Pradesh on the Enemy Property (Amendment & Validation) Second Bill, 2010.

5. 10.08.2011 1.15 (i) Hearing of certain individuals/ organizations on the Enemy Property (Amendment & Validation) Second Bill, 2010; (ii) consideration of proposal to seek further extension of time upto the first day of the last week of Winter Session 2011 of Parliament for presentation of report on the Enemy Property (Amendment & Validation) Second Bill, 2010; and (iii) deciding the dates for further hearing of Delhi, Chief Secretary and other stake holders on the Enemy Property (Amendment & Validation) Second Bill, 2010.

183 CHAPTER-IX COMMITTEE ON HUMAN RESOURCE DEVELOPMENT

I. Composition of the Committee

9.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

Shri Oscar Fernandes ⎯ Chairman

RAJYA SABHA

2. Shrimati Mohsina Kidwai 3. Dr. K. Keshava Rao 4. Shri Prakash Javadekar 5. Shri M. Rama Jois 6. Shri Pramod Kureel 7. Shri N.K. Singh 8. Shrimati Kanimozhi 9. Dr. Janardhan Waghmare 10. Shri N. Balaganga

LOK SABHA

11. Shri Kirti Azad 12. Shri P.K. Biju 13. Shri Jeetendra Singh Bundela 14. Shri Suresh Chanabasappa Angadi 15. Shrimati J. Helen Davidson 16. Shri P.C. Gaddigoudar 17. Shri Rahul Gandhi 18. Shri Deepender Singh Hooda 19. Shri Prataprao Ganpatrao Jadhav 20. Shri Suresh Kalmadi 21. Shri P. Kumar 22. Shri Prasanta Kumar Majumdar 23. Capt. Jai Narain Prasad Nishad 24. Shri Sheesh Ram Ola 25 Shri Tapas Paul 26 Shri Brijbhushan Sharan Singh 27 Shri Ashok Tanwar 28 Shri Joseph Toppo 29 Dr. Vinay Kumar Pandey ‘Vinnu’ 30 Shri P. Viswanathan 31 Shri Madhu Goud Yaskhi

184 9.2 The Committee was re-constituted on 31st August, 2011 with the following composition:—

Shri Oscar Fernandes ⎯ Chairman

RAJYA SABHA

2. Shrimati Mohsina Kidwai 3. Dr. K. Keshava Rao 4. Shri Prakash Javadekar 5. Shri M. Rama Jois 6. Shri Pramod Kureel 7. Shri N.K. Singh 8. Shrimati Kanimozhi 9. Dr. Janardhan Waghmare 10. Shri N. Balaganga

LOK SABHA

11. Shri E.T. Mohammed Basheer 12. Shri Kuvarjibhai Mohanbhai Bavalia 13. Shri Mirza Mehboob Beg 14. Shri Sameer Bhujbal 15. Shri P.K. Biju 16. Shri Jeetendra Singh Bundela 17. Shri Suresh Channabasappa Angadi 18. Shri P.C. Gaddigoudar 19. Shri Rahul Gandhi 20. Shri Kapil Muni Karwariya 21. Capt. Jai Narayan Prasad Nishad 22. Shri Sheesh Ram Ola 23. Km. Saroj Pandey 24. Shri Prasanna Kumar Patasani 25. Shri Balakrishna Khanderao Shukla 26. Shri Ashok Tanwar 27. Shri Joseph Toppo 28. Dr. Vinay Kumar Pandey ‘Vinnu’ 29. Shri P. Viswanathan 30. Shri Madhu Goud Yaskhi 31. *Shri Rathod Ramesh

* Nominated as member of the Committee 25.11.2011 185 II. Subjects selected for examination

9.3 The Committee after its reconstitution decided to consider and examine the following subjects:— (i) Status of Faculty in Higher Educational Institutions in the Country (ii) Menace of Ragging in Colleges/Universities (iii) Implementation of RTE Act, 2009 (iv) Facilities, Infrastructure and Incentives for Sportspersons in India.

III. Bills referred to the Committee

9.4 During the year 2011, the following Bills were referred to the Committee for examination and report:—

Sl. No. Name of the Bill Date of Reference Report

1. The Protection of Children from Sexual Offences 28.03.2011 240 Bill, 2011

2. The National Academic Depository Bill, 2011 16 .09.2011 Bill under consideration

IV. Constitution of Sub-Committees of the Department-related Parliamentary Standing Committee on Human Resource Development

9.5 Two Sub-Committees were constituted during the year 2011 on the following two subjects:—

(i) Implementation of RTE Act, 2009 and (ii) Facilities, Infrastructure and Incentives for Sportspersons in India.

V. Review of work done

(a) Sittings of the Committee

9.6 During the year 2011, the Committee held 30 sittings lasting over 63 hours and 52 minutes. A statement showing the dates and duration of each sitting of the Committee, as also the subjects discussed during this period are given in Annexure XII.

(b) Sittings of Sub-Committees

9.7 The Sub-Committee-I on the 'Implementation of RTE Act, 2009' held meetings on the following dates:— (i) Meetings of Sub-Committee – I held on 11th and 24th November, 2011. The Sub-Committee-I had a meeting on 11th November, 2011 to discuss the future of course of action with respect to the subject. The Sub-Committee – I heard the views of the Secretary, Department of School Education & Literacy on the Status of Implementation of the RTI Act in its meeting held on 24th November, 2011 (ii) No Meeting of the Sub-Committee – II held in the year 2011.

(c) Study Visits

9.8 During the year 2011, the Committee undertook a study visit to Bengaluru, Chennai and Thiruvananthapuram from 17th to 23rd January, 2011 for the examination of the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 and the Status of Faculty in Higher Educational Institutions in the Country.

186 VI. Reports presented/laid

9.9 During 2011, the Committee presented/ laid the following Reports in both the Houses of Parliament:—

Sl. No. Report No. Dates of Subject presentation/Laying in Rajya Sabha/Lok

Sabha

1. 229 25.2.2011 229th Report on the Architects (Amendment) Bill, 2010 2. 230 8.3.2011 230th Report on Action Taken by Government on the recommendations/ observations contained in the Two Hundred Nineteenth Report on Demands for Grants 2010-2011 (Demand No.104) of the Ministry of Women and Child Development 3. 231 8.3.2011 231st Report on Action Taken by the Government on the recommendations/ observations contained in the Two Hundred Twentieth Report on Demands for Grants 2010-2011 (Demand No.105) of the Ministry of Youth Affairs and Sports 4. 232 8.3.2011 232nd Report on Action Taken by Government on the recommendations/ observations contained in the Two Hundred Twenty First Report on Demands for Grants 2010-2011 (Demand No.57) of the Department of School Education and Literacy (Ministry of Human Resource Development) 5. 233 8.3.2011 233rd Report on Action Taken by Government on the recommendations/ observations contained in the Two Hundred Twenty Second report on Demands for Grants 2010-2011 (Demand No.58) of the Department of Higher Education (Ministry of Human Resource Development) 6. 234 25.2.2011 234th Report on the Central Educational Institutions (Reservation in Admission) Amendment Bill, 2010

7. 235 25.2.2011 235th Report on the Juvenile Justice (Care and Protection of Children) Amendment Bill, 2010

8. 236 (RS 1.8.2011) 236th Report on Prohibition of Unfair Practice in Technical Educational (LS 2.8.2011) Institutions, Medical Educational Institutions and Universities Bill, 2010

187 Sl. No. Report No. Dates of Subject presentation/Laying in Rajya Sabha/Lok Sabha 9. 237 (RS 1.8.2011) 237th Report on the Foreign Educational Institutions (Regulation of Entry and (LS 2.8.2011) Operations) Bill, 2010 10. 238 12.8.2011 238th Report on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 11. 239 08.12.2011 239th Report on the Protection of Women Against Sexual Harassment at Workplace Bill, 2010 12. 240 21.12.2011 240th Report on the Protection of Children from Sexual Offences Bill, 2011

9.10 Minutes of sittings of the Department-related Parliamentary Standing Committee on Human Resource Development relating to various Reports presented to the House were prepared and presented to the House alongwith the relevant Reports.

VII. Summary of Recommendations

(a) 229th Report on the Architects (Amendment) Bill, 2010 Background of the Bill

9.11 The Committee is not convinced by the arguments put forth by COA for taking pro-active action beyond its mandate against the architecture institutions. Equally disturbing is issuance of guidelines when only regulations can be notified by it, that too with the approval of the Central Government. The kind of justification given by COA for increasing the age of retirement of its employees is far from satisfactory as it is in direct contravention of specific provision, i.e. section 12 (c) of the Act. Similarly, establishment of NIASA can also be not considered an advisable action. 9.12 The Committee would like to point out that a plain reading of section 43 clearly indicates that the Central Government has been given the power, with a view to removing any difficulty, to make provisions, not inconsistent with the provisions of the Act. The question of varying the provisions of the Act therefore, does not arise. Secondly, the Committee fails to understand the rationale for bringing in such amendments on one hand and not accepting the recommendation of the Expert Group for setting up a Board of Architectural Education, on the plea that a decision to have an over-arching body of higher education has already been taken. The Committee expresses its serious concern on this somewhat contradictory approach of the Department. 9.13 The Committee was informed by the Department that the provision of issue of directions is available in section 20 of the UGC Act, section 20 of AICTE Act and in the new amendment introducing section 3 (c) of the Indian Medical Council Act, 1956 and section 30 (A) of the Chartered Accountant Act, 1949. Provision for supersession of the Council is available in section 21 of AICTE Act and section 3 (A) of IMC Act, 1956. On a comparative analysis of Acts governing professional bodies, the Committee feels that proposed amendments in the Architects Act, 1972 cannot be considered similar. While UGC Act, 1956 (section 20), AICTE Act, 1987 (section 20), NCTE Act, 1993 (section 9) do have the power to give directions but they are restricted to only questions of policy. The Committee would like to draw the attention of the Department to section 20 of UGC Act, 1956: "...... the Commission shall be guided by such directions on questions of policy relating to national purposes as may be given by the Central Government." 9.14 The Committee observes that power to supersede a statutory body has been provided to the Central Government in respect of AICTE and NCTE and recently in the case of MCI. The Committee would like to point out that period of supersession in respect of these bodies is only one year, unlike two years proposed in respect of COA. 188 Clause 2: Section 6 : Terms of Office and casual vacancies 9.15 The Committee would like to point out that there are very specific provisions regarding conduct of elections under Rules 3 and 6 of the Council of Architecture Rules 1973. Rule 3.1 dealing with 'Representatives of the Indian Institute of Architects' says that:— “ the President shall, not later than sixty days before the date of occurrence of vacancy by the expiry of the term of office of a member, send intimation thereof to Central Government who shall, not later than forty five days before the date of occurrence of the vacancy ,forward a notice by registered post to the Secretary of the Indian Institute of Architects requesting him to hold an election by a date not later than the date specified in the notice.” Similar provisions are there in case of vacancies under section 4 (1) and (2) of the Act. From the above, it is clear that both the President of the Council and the Central Government are jointly responsible for conducting the elections. Further, so far as elections under section 3(3)(c) are concerned, Rule 6 stipulates that :— “The Returning Officer shall call upon the head of architectural institutions in India to elect such number of members as are referred to in clause (c) of sub-section (3) of section 3 and in the case of first election, five members shall be elected.”

It is also very clear from the Rules that the Returning Officer is to be appointed by the Central Government.

9.16 The Committee further takes note of the fact that these rules were amended by the Central Government in 2009. The amended rules provided for conduct of elections by the Central Government where the President fails to inform the Central Government regarding occurrence of a vacancy or if the Central Government is of the opinion that the vacancy has occurred. The amended rules further provided for filling up of the vacancies under section 3(3) (c) of the Act by the Central Government by notifying the vacancies in the Official Gazette and requesting the Returning Officer to hold elections by the date specified in the notice. The Committee fails to understand as to why inspite of having all the powers the Central Government failed to conduct the elections for the ten elected members, and notify the same.

9.17 It is ironical that inspite of the clear provisions under the Act and Rules, the well-established procedure for conduct of elections could not be adhered to, due to a number of undesirable and somewhat pre-meditated developments by all the concerned authorities. Every small issue related to elections being dragged to Courts on technical grounds depicts a very disturbing state of affairs. Feeling of helplessness on the part of the Department inspite of having all the authority for conducting elections under the Act and the Rules framed by it indicates a very unsatisfactory level of handling the uncalled for developments by the Department. The Committee finds it very surprising that nobody took the initiative to take the benefit of section 5 (2) whereunder in case of any dispute regarding election arising, the matter has to be referred by the Council to a Tribunal appointed by the Central Government and decision of the Tribunal shall be final. Had this provision been enforced, need for approaching the Courts would not have arisen.

9.18 The Committee also strongly feels that instead of there being an element of co-ordination and positive approach, under current of one-manupship has been very dominant in the recent years in their dealing with each other, both by COA and the Department. The Committee finds it difficult to agree to the Department's contention that the present Council did not allow the Returning Officer to conduct elections as it feels that under the Rules, the Returning Officer is endowed with sufficient powers so much so that it is the Returning Officer who decides as to whether a person is or is not entitled to vote or to stand for election.

9.19 The Committee would like to place on record that it agrees with the basic intent of the legislation that there should be timely elections/nominations in the Council. The Committee would rather appreciate if a free and fair process of election or nomination of the Members of the Council is ensured. However, it apprehends whether the proposed amendment in section 6(1) only would achieve this. Further, the Committee feels that it may lead to a vaccum in the Council of Architecture if elections/nominations are not held due to some reasons as with the proposed amendment, the present incumbent would be required to go out immediately after the expiry of three years whereas the Council of Architecture is supposed to be a permanent body. Secondly this would be inconsistent with the proposed sub-section (6) which provides that unless the names and addresses of the elected/nominated members of the Council are notified by the Central Government, a person would not

189 become a member of the Council. The Committee feels that the proposed changes in sub-section (1) and new proposed sub-section (6) are needed to be made consistent and there should be clear provision obligatory on the Central Government to notify the names within the stipulated time-frame of 15 days.

Clause 3: Section 10 A: Directions by Central Government

9.20 The Committee also takes note of the fact that in other statutory bodies like UGC, MCI, Dental Council, Indian Nursing Council, Central Government has been vested with the power to issue direction only on policy issues or to resolve disputes in election. The Committee would also like to point out that the proposed provision under section 10A is in contravention of regulation making power given to the Council under section 45. Not only this, these Regulations are to be made by the Council only in consultation with Central Government and to be laid in Parliament thereby ensuring their scrutiny by Parliament. The Committee is of the opinion that the proposed provision under section 10 A is uncalled for and liable to raise complication in future in view of section 45. The Committee, therefore, recommends that this provision may be suitably revised so as to give powers to the Central Government to give directions only on policy matters.

Clause 4: Section 10 B: Power to supersede Council

9.21 The Committee is of the firm opinion that with the proposed powers to be given under section 10 A and 10 B, situation is not likely to improve so far as COA is concerned. Against the backdrop of such a large number of court cases going on at present, existing very apparent element of confrontation is undoubtedly going to aggravate further. The Committee strongly feels that instead of such an amendment, provision relating to power to refer to a Commission of Inquiry on the failure of COA to comply with the provisions of the Act can be incorporated in the Act.

9.22 The Committee would like to point out that with the proposed amendments relating to term of three years for the members of the Council, with no chance of further extension, functioning of COA is definitely going to be streamlined. The Committee also observes that the role of the Central Government is well crafted in the Architects Act, 1972. Right from constitution of COA (section 3.1), it is reflected in appointment of Tribunal (Section 5 (2), fixation of pay and allowances and other conditions of service of employees [section 12 (1) (5)], investment of funds [section 13 (2)], recognition of qualification granted by authorities in India (section 14), recognition of architectural qualifications granted by authorities in foreign countries (section 15), power to amend Schedule (section (16), withdrawal of recognition (section 20), renewal of fees (section 27), restoration of Register (section 32), information to be furnished by the Council (section 40), power to remove difficulties (section 43), power to make rules (section 44) and approval to make regulations to be framed by the Council (Section 45). Contention of the Department that in the absence of power to issue directions to the Council, the aforesaid manifold functions and powers assigned to the Central Government could not be carried out as the advisories given to the Council were not acceded to by the COA is simply not acceptable to the Committee. The Committee can only conclude that inspite of well-enshrined and well-established powers and functions of both the Council and the Department in the Act as well as the regulations and rules made thereunder, somewhere in the atmosphere of confrontation, the spirit behind the Act of 1972, i.e., propagation of professional education in the field of architecture was simply side-lined by all concerned.

9.23 The Committee has also taken note of the fact that there is an urgent need for bringing in comprehensive amendments in the Architects Act, 1972 in line with the advancements made specially during the recent years. Both the Council and the Department are in favour of such a move. Not only this, the Committee is also aware of the fact that a legislation for having an over-arching Commission for Higher Education and Research whereunder all the statutory bodies like Council of Architecture are likely to be subsumed is going to be brought very soon by the Government. Lastly, there are a number of issues like role of Council vis-a-vis AICTE, conduct of elections to the Council, various actions taken by COA which are at present sub-judice. In such a scenario, the Committee is constrained to observe that the proposed legislation which can only be considered a short-term measure is not an advisable move on the part of the Department.

190 (b) 230th Report on Action Taken by Government on the recommendations/observations contained in the Two Hundred Nineteenth Report on Demands for Grants 2010-2011 (Demand No.104) of the Ministry of Women and Child Development.

Budgetary Allocation 9.24 The Committee has been given to understand that the procedural delay in approvals of new schemes like Rajiv Gandhi Scheme for Empowerment of Adolescent Girls (RGSEAG), Relief to and Rehabilitation of Rape Victims, Indira Gandhi Matritva Sahyog Yojana and the National Mission for Empowerment of Women was the main reason for delayed initiation and implementation of the schemes. Analysis of these five schemes clearly indicates that procedure for completion of various formalities is a protracted exercise which may continue for years with either the scheme being completely dropped or being approved with entirely different norms. Scheme for Relief to and Rehabilitation of Rape Victims was framed by the National Commission for Women 15 years ago, that too on the direction of Supreme Court. After several rounds of discussion, it was on the 7th March, 2010, the Expenditure Finance Committee had recommended a scheme with a different nomenclature to be implemented as a Centrally Sponsored Scheme during the Eleventh Plan. Last quarter of the Financial Year 2010-11 has already commenced and with only one year of the Plan period remaining, the scheme is yet to be launched, reason being all the procedural formalities not completed even now. For the other two schemes; i.e. Rajiv Gahdhi Scheme for Empowerment of Adolescent Girls and Indira Gandhi Matritva Sahyog Yojana, although approval has been given by the competent authority for implementation in 200 and 52 selected districts on 25 March, 2010 and 25 May, 2010 respectively, no feedback is there about the launch of these schemes on pilot basis.

9.25 Fate of Swayamsidha Phase-II is not only somewhat surprising but also disturbing, a scheme whose Phase-I was successfully implemented by the Ministry. For two years, implementation of this scheme remained suspended and in the third year, it was decided not to pursue the scheme, as another Ministry has launched a similar programme on a bigger scale. The Committee would like to remind the Ministry about its observation made few years ago for undertaking a review of all its women-specific schemes where over-lapping was there both intra- Ministry and inter-Ministries. The Committee would like to be apprised about the comments of the Planning Commission and the details of the programme of Ministry of Rural Development and also the areas of overlap of both the schemes. The Committee would like to point out that Swayamsidha is a flagship programme of the Ministry for holistic empowerment of women through SHGs covering all districts/blocks in the country. Further, the World Bank intends to fund its several components which works out to about 50 per cent of total costs. In view of this, the Committee wonders whether components of the scheme with the objective of women empowerment through SHGs would be achieved through the other scheme of the Ministry of Rural Development.

9.26 The Committee is not convinced by the justification given by the Ministry about the pendency of Utilisation Certificates dating back to 1986-87 onwards. Latest status of Utilisation Certificates also does not indicate a satisfactory position. The Committee would appreciate if pro-active efforts are initiated by the Ministry for liquidating the very old Utilization Certificates. Simultaneously, pendency pertaining to the recent years also needs to be brought to the minimum level. The Committee is of the view that adherence to financial norms by the implementing agencies needs to be impressed upon emphatically. Continuance of pending Utilisation Certificates only indicates that the various schemes meant for the welfare of children and women, the most vulnerable sections of the society are not being implemented in a time-bound manner.

Integrated Child Development Service (ICDS) Scheme

9.27 The Committee appreciates the efforts of the Ministry in increasing the number of operational AWCs/mini-AWCs from 11,04,262 in December, 2009 to 11,95,256 on 30 September, 2010. Similar increase in the in-position AWWs & AWHs has been witnessed. However, the Committee notes the vacancy position in the States with respect to supervisors, AWWs & AWHs with maximum vacancies found in Andhra Pradesh, Bihar, Chhattisgarh, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. The Committee observes that prolonged process of recruitment and court cases are the two main factors responsible for a large number of posts of ICDS functionaries remaining vacant. The Committee has been given to understand that the issue of filling up of vacancies of ICDS functionaries and issue of

191 universalisation of ICDS was taken up with States/UTs during the State Ministers meetings held on 16-17 June, 2010 and with Secretaries of States on 28 October, 2010. The Committee is also of the view that these issues need to be taken up with the concerned State Governments at the highest level so as to expedite the filling up of the vacant posts.

9.28 The Committee is of the view that the issue of cost sharing basis under ICDS Scheme for Jammu & Kashmir, Himachal Pradesh and Uttarakhand on the pattern of North-Eastern States needs to be decided and implemented at the earliest.

Univerailisation of ICDS

9.29 The Committee is constrained to take note of the response of the Ministry to specific problem areas with regard to location of AWCs in some States which were noticed by the Members. Instead of exploring the feasibility of setting up AWCs as per the requirements of local population, the Ministry has chosen to give a very general reply. The Committee would like to point out that if targeted beneficiaries remain deprived of the facilities available under the scheme, the issue of sanctioned and operational AWCs would remain confined to academic exercise only. The Committee, therefore, reiterates that specific problem areas as enumerated by the Members need to be looked into without any further delay. The Committee is of the view that the outreach of ICDS should be extended to every habitation and groups so that more and more women and children benefit from the scheme. The viability of AWCs with special components to cater to the needs of women workforce working in tea gardens or residing in far flung topographically difficult areas should be explored so that local specificity of the State and population is taken into consideration.

9.30 The Committee is dismayed to note the state of affairs of procurement of Pre-school Education Kits and Medicine Kits. The Committee has been informed that procurement process is under process in eleven States for the year 2009-10. No information has been received from the States like Andhra Pradesh, Bihar, Haryana, Jammu & Kashmir, Jharkhand, Lakshadweep, Puducherry and Sikkim for the year 2009-10. In States/UTs like Chhattisgarh, Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu, Chandigarh, Dadra & Nagar Haveli, Delhi, Arunachal Pradesh and Tripura, procurement process for both Medicine Kits and Pre-school Education Kits in 2009-10 is still going on. Status of 2010-11 has not been made available to the Committee. Only one State and Union Territory i.e. Assam and Andaman & Nicobar Islands procured kits as per requirement of operational AWCs. The Committee has been informed by the Ministry that inspite of their efforts, there has been no progress in procurement of Pre-school Education Kits in any of the States/UTs. The matter was last taken up with the States/UTs in the State Secretaries Review Meeting held on 28 October, 2010. The Committee would like to reiterate that the Ministry should take up the matter again with the States at the highest level for strengthening this vital component of ICDS.

Special intervention for construction of AWC building

9.31 The Committee observes that status of AWC buildings for North-Eastern States as on October, 2010 shows some improvement. However, fact remains that considerable gap continues to persist for AWC buildings targeted for 2004-05, 2005-06 and 2006-07. The Committee strongly feels that this undue delay cannot be justified specially in the light of availability of central funds. The Committee, accordingly, recommends that this matter needs to be taken up at the highest level with State authorities. One must not forget that public funds meant for serving the cause of the most vulnerable section of the society are lying unutilized all these years.

Manpower under ICDS

9.32 The Committee takes note of the reasons cited by the Ministry for delay in filling up of vacancies as indicated by some States. The Committee is of the view that all the problem areas pertaining to procedural issues can be sorted out easily and pave the way for filling up of posts of ICDS functionaries. With regard to delay taking place due to court cases in Haryana and West Bengal, the Committee is of the view that an attempt needs to be made to understand the factors responsible for filing of court cases so as to remove ambiguity if any, in the recruitment rules. The Ministry should take up this matter with the concerned State Governments at the earliest. The need of the hour is to re-vitalize the ICDS scheme by filling up of vacant posts without any further delay.

192 Award scheme for ICDS functionaries

9.33 The Committee is disappointed with the way the issue of finalizing the awards for ICDS functionaries is being tackled. Due to delay in finalizing the awards for 2004-05 and 2005-06, the process to select the awardees for the subsequent years i.e. 2006-07, 2007-08 and 2008-09 has been delayed. The Committee has been informed that after issuing of guidelines by the Central Government for finalizing State Awardees, only seven States/UTs viz. Goa, Himachal Pradesh, Madhya Pradesh, Mizoram, Tamil Nadu, Uttarakhand and Daman & Diu have sent their nominations for the National Level Awards as on 25 November, 2010. The Committee is of the view that any award has to be announced and given at the earliest. Only then, it can be ensured that the awardee has been motivated in the real sense. This fact may be impressed upon the concerned State Governments. Procedural constraints leading to undue delay may be identified and corrective steps taken accordingly.

Honorarium for Anganwadi Workers and Helpers 9.34 The Committee has been informed that only 22 States/UTs have sanctioned additional honoraria for AWWs and AWHs. The Committee observes that there are wide disparities in the quantum of honorarium being given to these ICDS functionaries with Rs. 50 being given for AWWs in Meghalaya to Rs. 2607 being given in Tamil Nadu. Financial constraints of State Governments notwithstanding, the Committee would like to reiterate that the State Governments need to recognize the contribution of grass root level workers and give additional monetary incentives and honoraria to them. Lack of such an initiative on the part of States like Assam, Madhya Pradesh, Chhattisgarh, Bihar Jharknhand, Orissa is a cause of serious concern for the Committee as the need of motivated ICDS functionaries in these States is the maximum. The Committee, therefore, recommends that the Ministry should take up the issue with the States once again. The Committees appreciates the initiative of the Ministry against the frequent transfers of officers looking after ICDS Projects and supports giving of exclusive charge of the ICDS Projects to the officers so that they are committed towards these projects without being diverted by additional workload. The Committee is also of the view that modifications made in the recruitment rules so as to ensure better job opportunities to AWHs and AWWs is a step in the right direction. However, the Committee feels that an assessment about the ground realities in this regard at the State level needs to be made.

Monitoring Mechanism

9.35 The Committee would appreciate if a decision with regard to inclusion of MPs and MLAs in the Monitoring Committees is taken at the earliest.

Rajiv Gandhi National Creche Scheme for the children of working mothers

9.36 The Committee is dismayed to note that the coverage of Rajiv Gandhi National Creche Scheme for the Children of Working Mothers has been declining mainly due to mismanagement of crèches run by the different implementing agencies. The Committee finds that out of 5322 crèches being run by Bhartiya Adim Jati Sevak Sangh. CSWB was able to take over only 3149 crèches due to stiff resistance of the crèche workers and the functionaries of BAJSS and out of these crèches taken over by CSWB, only 1221 creches are functional. Another disturbing development is that CSWB also had to close down some of its own crèches due to poor functioning/non-functional crèches. Thus, against the earlier figure of total 31,718 functional crèches, the number of functional crèches at present is 22, 599. Even in the functional crèches, sample checks had revealed gaps in provisioning of services like SNP, appropriate early childhood education, infrastructure, non-adherence of stipulated time-period of 8 hours per day. The Committee notes that after a review of the procedures followed by CSWB and ICCW, the Ministry prepared a revised Standard Operating Procedure (SOP) for CSWB which included enhanced roles for the State Government/District Administration in the management of crèches and inspection of the crèches by the State Governments for assessing their quality and requirement in the States.

Integrated Child Protection Scheme

9.37 The Committee has been informed that twenty nine States/UTs have signed the MoU for implementation of the Integrated Child Protection Scheme. A project Approval Board has been constituted 193 under the Chairmanship of Secretary, Ministry of WCD to appraise the financial proposals for release of grants under the scheme and review the progress of implementation. Proposals worth Rs. 43.11 crores have been approved for seven States uptill 25 November, 2010 and Rs 24.58 crore have been released to them as the first installment. Out of the total 546 districts in 29 States, Child Welfare Committees have been set up in 465 districts, Juvenile Justice Boards in 445 districts and Special Juvenile Police units in 478 districts. While appreciating the increasing number of State Governments signing the MOU for the scheme, the Committee believes that an uphill task is yet to be completed. The State Governments need to put in place the child protection network like Juvenile Justice Boards, Child Welfare Committee, Special Juvenile Police Units etc. for effective implementation of the scheme. The Committee is happy to note that the Ministry is extending its cooperation to the States in framing financial proposals and also assessing their available resources and actual requirements. The Committee recommends that setting up of other structures such as the Societies at State and district levels, State Adoption Resource Agencies etc. in the States should be expedited so that these agencies are ready for implementation of the scheme. An inbuilt effective monitoring mechanism should also be evolved so that the scheme remains fully functional in the real sense, catering to the needs of targeted beneficiaries. The Committee would also like to be apprised about the expenditure details of Rs. 300 crore allocated for the scheme in 2010-11.

9.38 As per the information received from the Ministry, total number of Homes supported under the Integrated Child Protection Scheme in 2010-11 (upto 31st October, 2010) is 191 and the number of beneficiaries is 10, 377. Proposals for Homes for the year 2010-11 have not been received from Chhattisgarh, Nagaland and Rajasthan and proposals for States like Andhra Pradesh, Haryana, Karnataka, Kerala, Manipur are under consideration. The Committee finds the number of Homes supported and the number of beneficiaries to be too less thereby indicating the limited outreach of these Homes. The Committee is of view that preparatory exercises like the assessment of requirement of such Homes in the States should have been completed beforehand so as to present comprehensive proposals for their maintenance, up gradation and construction. The Committee is also of the opinion that since such Homes cater to the needs of vulnerable children in need of protection and care, a monitoring mechanism should be devised for their smooth and proper functioning. Scheme of Hostels for Working Women

9.39 The Committee has been monitoring the implementation of the Scheme of Hostels for Working Women for the last many years. The Scheme has never been implemented as envisaged due to inherent problem areas and operational difficulties. Unfortunately, the process of revision of scheme has been unduly long with almost an entire plan period being spent therefor. As per the latest feedback made available to the Committee, the last ambiguity in the revised scheme, i.e. definition of the tern ‘Public Land’ has been clarified and the revised scheme is being notified. The Committee hopes that by the end of 2010-11, it would be notified so that it may become operational from the beginning of 2011-12 itself.

CARA

9.40 The Committee would like to emphasize that the process for having an enabling legislation for the Hague Convention on Inter-country Adoptions should be expedited so as to ensure removal of all procedural delays being faced in the adoption of children.

Rashtriya Mahila Kosh (RMK)

9.41 A very critical component of the Scheme i.e. performance of NGOs implementing the scheme was highlighted by the Committee with special reference to 15 NGOs blacklisted under RMK during 2008-09 and 79 NGOs blacklisted during 2009-10. The Committee had recommended that a viable mechanism of inspections at periodic intervals involving both State authorities and officers from the Ministry needed to be evolved with stipulated time frame for completing the proceedings against the ensuing NGOs. The Committee is, however, disappointed to find no comments from the Ministry in this regard. The Committee only wants to emphasize upon the principle of financial accountability of the NGOs involved in the implementation of the Scheme.

194 Condensed Courses of Education for Women

9.42 The Committee notes that out of 1763 courses sanctioned during 2007-08, 2008-09 and 2009-10, the number of non-performing NGOs is 122. These NGOs were given show cause notices and their grants cancelled and action to obtain the refund of grant was initiated. The Committee finds that out of 33 States, only 19 States had furnished information about the blacklisted NGOs in the year 2007-08. Amongst the 19 States, Maharashtra had the maximum number of blacklisted NGOs i.e. 16. With information still awaited from many States, the overall assessment cannot be made. The Committee is of the view that concerted efforts are required to be made for getting the complete details. More show cause notices would not serve the purpose as stern action should be taken against the erring NGOs. They should be made financially accountable and refund the grant released to them without any further delay. As regards the placement position of States under the Scheme, only ten States have furnished the data in this regard. Of these ten States, the placement position of candidates could not be ascertained as results have not been received from the NGO/State Board or are still awaited. The Committee is not inclined to agree with the Ministry's contention that almost all the candidates are placed in one way or the other way. The Committee would like to point out that the placement position of candidates is the real indicator of the success of the scheme. Given the small number of beneficiaries in the ten States, the Committee feels that a lot has to be done for translating the scheme into a successful venture.

Scheme for Relief to and Rehabilitation of Rape Victims

9.43 The Committee has been given to understand that the Scheme for Relief to and Rehabilitation of Rape Victims has been renamed and revised as a Centrally Sponsored Scheme and the Scheme has now been finalized and approved by the EFC on19.9.2010. The Scheme, inter-alia, provides for the setting up of District Criminal Inquiries Relief and Rehabilitation Board which would consider claims for assistance under the scheme. Given the fact that the scheme is a Centrally Sponsored Scheme, this Board would have to be constituted in each district of the country which is an uptill task in itself. The Committee would like the Ministry to play a pro-active role in ensuring the constitution of this Board in all the districts of the country. Further, care should be taken to see that the composition of the Board includes ample representation of women keeping in view the fact that the Board has to deal with vulnerable women who would be rape victims and need to be rehabilitated suitably. The Committee believes that given the nature of crime against these victims, utmost sensitivity is required to handle their cases.

National Commission for Women (NCW)

9.44 The Committee takes note of the problems encountered by the NCW in disposal of complaints registered at the agency. Given the increase in the number of complaints filed, a restructuring proposal for examining the staffing requirement of NCW as suggested by the Ministry is a step in the right direction. The Committee feels that NCW plays an important role in redressal of grievances of women suffering various kinds of atrocities and therefore it needs to widen its scope and structure so as to strengthen it for efficient disposal of complaints. There should be an increase in the number of staff including the counsellors who have to deal with ever increasing complaints due to introduction of the system of online filing of complaints. The Committee of the view that adequate allocation of funds along with increase in the number of staff should be taken up by the Ministry on a priority basis.

Comprehensive Scheme for Combating Trafficking (UJJAWALA)

9.45 The Committee observes that only 18 out of 99 proposals were approved for the implementation of the scheme. This means that the State Governments are not clear about the scope and objectives of the scheme and therefore are not coming up with viable proposals. The Committee feels that the Ministry should work in tandem with the State Governments helping them in making suitable proposals for the scheme. Selection of NGOs should be done very carefully so as to avoid non-performing or poor-performing ones as learnt from the experiences of the implementation of the other schemes of the Ministry. Efforts should be also made to operationalise the sanctioned Homes as early as possible for the benefit of the affected women and children. Further, proper monitoring along with periodic inspections of the Rehabilitative Homes sanctioned so far should be carried out.

195 (c) 231st Report on Action Taken by the Government on the recommendations/observations contained in the Two Hundred Twentieth Report on Demands for Grants 2010-2011 (Demand No.105) of the Ministry of Youth Affairs and Sports

Nehru Yuva Kendra Sangathan (NYKS)

9.46 The Committee is constrained to observe that no significant progress could be made so far as filling up the 168 vacancies in the grade of District Youth Coordinators is concerned. For as many as 168 vacancies, response being received only from 85 candidates, that too after considerable time is indeed very surprising. Similarly, a very few applications have been received from States/UTs for filling up these posts on deputation. As a result, about 150 Nehru Yuva Kendras continue to function without District Youth Coordinators. The Committee strongly feels that there is an urgent need for review of the recruitment process so as to analyse the reasons for such an unsatisfactory response.

National Service Scheme (NSS)

9.47 Latest details furnished by the Ministry depict a very discouraging scenario so far as coverage of National Service Scheme in different categories of institutions is concerned. Out of total 70,638 institutions in the country, this scheme is operational in only 26,202 institutions with the maximum shortfall being in schools. Out of 47,730 schools, only 9230 schools are covered. The Committee would like to point out that this scheme plays a very crucial role in characterbuilding and increasing social awareness of our students. The Committee strongly feels that a special drive should be carried out so as to draw more and more students. The Ministry can very well play a pro-active role in close coordination with the Ministry of Human Resource Development and State authorities. The Committee would also like to point out that fund constraints should not come in the way of expansion of this social scheme. The Committee would also like to have an idea about the involvement of Self Financing Units in the implementation of NSS.

9.48 The Committee observed that the trend in the expenditure incurred during the last three years is not very encouraging and, therefore, expressed its doubts whether the balance amount of Rs. 242.25 crores would be spent in the next two years when only 182.75 crore had been spent in the last three years. The reason for this apprehension comes from the fact that the Department has failed to increase the enrolment and coverage of schools under the scheme. The Committee, therefore, reiterates that the Department should strive hard to achieve the enrolment rate under the NSS.

National Discipline Scheme

9.49 Specific information pertaining to quantum of committed liability released so far, number of NDS Instructors covered thereunder, basis of outstanding committed liability along with number of NDS Instructors (State-wise) was sought by the Committee. The Committee hopes that this information has been forwarded by the three States. The Committee would like to be apprised in this regard. The Committee would also like to have a status report on the response received from the Ministry of Finance as well as the response of the remaining seven States. The Committee strongly feels that the entire liability needs to be liquidated in one go during the coming financial year.

Youth Hostels

9.50 It does not appear that the Ministry has taken any concrete steps in taking corrective measures and a comprehensive review of the under-performing Youth Hostels. Whether the changes suggested by the Ministry have so far been implemented is not seen in the reply. The Committee desires that the course of action suggested by the Ministry may not remain on paper only but it should be implemented in a time-bound manner. The Committee would also appreciate if an effective monitoring mechanism including both regular and surprise inspections is also put in place.

196 Scheme of Assistance to National Sports Federations

9.51 The Committee fears that the assistance provided to the sports federations should not go down the drain as is evident from the poor condition of the sports federations, sports infrastructure available in the country and that none of the international level players who achieved success at the national / international levels got support from Sports Federations. The Committee, therefore, recommends that more stringent norms and monitoring mechanism have to be set up for better utilization of funds and running of these federations.

Promotion of Sports Among Disabled

9.52 The Committee notes that the Ministry has made a beginning by giving assistance of Rs.1.19 crore to 57 schools and Rs. 4 crores for Special Olympic Bharat (SOB). It has to ensure that the assistance is actually utilized for development of sports among disabled. Further, the Committee feels that in any major or State/district level sports events, the events for the disabled should also be kept besides holding sports events exclusively for the disabled. Moreover, the Ministry should ensure development of sports infrastructure for the disabled and create a dedicated group of coaches for the disabled and implement its various schemes / programmes in a mission mode manner.

Urban Sports Infrastructure Scheme 9.53 The Committee voices its serious concern on the undue delay in the launching of the Scheme of Assistance for the creation of Urban Sports Infrastructure. The Committee would like to point out that this Scheme would be taking the place of four erstwhile centrally sponsored sports infrastructure schemes transferred to State Governments w.e.f. 1st April, 2005. The experience of involving the State Governments in the implementation of these schemes has been very discouraging. Any delay in reviving these schemes in a composite scheme will directly impact that too very adversely the creation of sports facilities in urban areas in the country. However, the latest feedback made available to the Committee clearly indicates that the scheme continues to be in early stages of finalization. The protracted exercise of getting the approval at various levels has still to be undergone. The Committee, therefore, would like to emphasize that concerted efforts need to be made to get the scheme finally approved at the earliest.

National Sports Development Fund

9.54 The Committee finds that it is only BCCI which has contributed Rs. 50 crore to the Corpus. No other private entity has made substantial contribution to the fund which shows the lack of enthusiasm on the part of the Ministry to generate more funds and is also indicative of the lack of faith by the private entities in the Government’s efforts and plans. The Department has failed to make any headway so far despite its efforts / initiatives and is still following the casual approach. The Committee desires that the Ministry may explore various fora and channels for generating funds with positive results and also make an honest effort in gaining the trust and confidence of the private sector if it has to achieve the desired results.

National Welfare Fund for Sportspersons

9.55 The Committee, while noting the reply of the Ministry, finds that the Ministry has not made any special efforts to create awareness about the Fund apart from what is being done routinely. The Ministry has to ensure that by relevant information reaches the sportspersons who are the users and beneficiaries of these schemes.

Scheme of Pension to Meritorious Sportspersons

9.56 The Committee had recommended that the scheme of pension to meritorious sports persons be extended to medal winners of national championships. But, nothing has been mentioned in that regard in the reply. The Committee is aware of the other schemes mentioned in the reply for nurturing young talent in sports. It was besides these schemes that the Committee had recommended extension of pension scheme to the winners of national championships which will create a sense of security among the young talent and attract them towards sports as their career. Ministry may work out a scheme in this regard.

197 National Championship for Women

9.57 The Committee is happy to note the enhanced norms of funding for holding competitions for women which will help in promoting sports among the women. However, the Ministry has to ensure that these norms may not remain on paper but should actually be made applicable and the sanctioned amount be utilized as envisaged.

Grievance Redressal Mechanism

9.58 The Committee is not convinced by the action taken by the Ministry with regard to setting up of Grievance Redressal Mechanism. The Committee would like to point out that declaration of Indian Olympic Association and all National Sports Federations as public authorities under the Right to Information Act, 2005 cannot be equated with a Grievance Redressal Mechanism. It is a well-known fact that under RTI, only information can be sought, any remedial action in a complaint cannot be taken. Secondly, complaints cannot be confined to only matters relating to selection of athletes. Any stakeholder right from sportspersons, both active and retired, to coaches, NGOs other functionaries can be having genuine grievances. The Committee, accordingly, reiterates that an effective Grievance Redressal Mechanism at different levels needs to be operationalised at the earliest.

Coaches

9.59 The Committee notes that at present, SAI has 1244 regular coaches and 86 on contract basis. But, at the same time, the Ministry has to ensure that any vacancy that may occur should be filled up immediately. Ministry should also prepare guidelines for training of coaches abroad and appointing foreign coaches on regular/contract basis. The Committee has noted the performance of Indian team in Commonwealth / Asian Games and the credit of good performance should also go to the coaches. The Committee hopes that the exercise of cadre review including review of recruitment rules for coaches must have been completed as envisaged by 31st August, 2010. The Committee would like to be apprised about the follow-up action taken thereafter.

(d) 232nd Report on Action Taken by Government on the recommendations/observations contained in the Two Hundred Twenty First Report on Demands for Grants 2010-2011 (Demand No.57) of the Department of School Education and Literacy (Ministry of Human Resource Development)

Budgetary Allocation

9.60 The Committee observes that around 50 per cent of the allocated resources for implementation of the SSA/RTE Act continue to remain under utilized. The Committee is of the considered opinion that non- adherence to financial norms and action plan in utilization of allocated funds is indicative of the bottlenecks in the effective implementation of Flagship Schemes like SSA and MDM Scheme. The Committee reiterates that the Department needs to identify the factors responsible for under utilization of funds and initiate remedial steps for optimum and judicious utilization of funds allocated for these schemes.

9.61 The Committee would like to be apprised of the ground realities and how far the concerted efforts of the Department have resulted in reducing the pendency of Utilization Certificates. Further, the Committee would like to know what State specific interventions have been initiated by the Department to address the problem of unspent balances in the States where the gap in allocation and utilization of funds has been quite large. The Committee would appreciate if the Department is able to ensure judicious and optimum utilization of allocated funds to reduce unspent balances to a minimum level.

198 Sarva Shiksha Abhiyan

9.62 The Committee is not inclined to agree to the Department’s view point that 81 lakh children in the age group of 6-14 years out of schooling system is not in contradiction of the GER figures. While it may be a matter of statistics for the Department, the Committee feels that it is a fact that such large number of children are still outside the schooling system. The Committee would appreciate if the Department comes out with a vision/strategy plan to cover the ‘hard to reach’ category of children as well in the schooling system. The Committee, accordingly, recommends the Department to initiate State specific interventions for such children.

9.63 The Committee feels that inspite of the elaborate interventions initiated by the Department, the overall dropout rate of SC/ST students as in 2007-08 both at elementary and primary level is much above the national average drop out rate. The drop out rate at elementary level especially is a cause for serious concern. The Committee is unable to comprehend the reasons for more than 50 per cent drop out rate at elementary level evident since 2001-02 uptill 2007-08 in spite of all the efforts of the Department. The Committee is of the considered opinion that the situation requires urgent remedial and focused steps not only in terms of fiscal/financial interventions but also social and psychological interventions. The Committee also strongly feels that a sustained publicity campaign about the benefits of these interventions/Schemes is required to be carried out. Involvement of Panchayats, local community leaders and dedicated NGOs working as a well-knit team can definitely lead to achievement of goals.

9.64 The Committee would like to point out that overall national drop out rate of 25.55 and 43.03 per cent at primary and elementary level negates the impact of the efforts put in by the Government for retention of students at initial level of schooling/enrolment. Further low Enrolment Ratio and high dropout rate in classes VI to VIII needs to be tackled at the earliest. Existing Schemes/interventions should be reviewed so as to include specific inputs in this regard. Therefore, the Committee would like the Department to initiate targeted efforts for both enrolment and retention of students simultaneously and rope in all agencies viz. State Governments, NGOs, Panchayats etc. for the same. The Committee observes that a number of targeted interventions are already in place so as to bring the ‘out of school children’ towards special schools. The Committee would appreciate if in addition to periodic review meetings at State level, both surprise and regular inspections are also conducted so as to assess the ground realities and efficacy of special interventions along with corrective measures taken thereafter.

9.65 The Committee takes serious note of the figures provided by the Department with regard to drop out rate of SC/ST students in Rajasthan, West Bengal, Assam, Dadra and Nagar Haveli and Orissa. The Committee notes that the drop out rate of SC children at elementary level in Rajasthan (65.39), West Bengal (67.10), Assam (76.62) and Orissa (70.53) is not only disturbingly high but has also shown steady increase in 2007-08 as compared to the figures of 2001-02. Similarly, drop out rate of ST children in these States is equally disturbing as indicated by the figures of 2007-08. The drop out rate for ST children at elementary level is highest in Orissa (82.99) followed by West Bengal (78.39) and Assam (75.47) in 2007-08. Situation is equally grim at primary level in these States with Rajasthan being the worst affected as its drop out rate for both the SC/ST category at primary and elementary level being above 50 per cent. The Committee would like the Department to adopt a focused strategy/interventions for these marginalized sections of the society specially in these States if it desires to achieve the goal of universalization of education. Specific Schemes/initiatives substantiated by required funding have been there for considerable time. What is required now is effective publicity campaign and dedicated implementing agencies.

9.66 The Committee, while noting the reply of Department would like to state that the recruitment of required number of teachers and their training has been an area of deep concern for the Committee. The Committee feels unless this particular aspect is addressed, the goal of universalization of quality education would remain a distant dream for the country. In this context, the Committee would like the Department to come up with latest statistics regarding recruitment of teachers as required under SSA/RTE Act and their training before the Committee for its objective assessment.

9.67 The Committee would emphasize that the required number of posts of teachers are filled up expeditiously. Simultaneously, there is also an urgent need for monitoring the redeployment of teachers to schools where there is deficit of teachers. If need be, this problem-area needs to be taken up with the concerned

199 States. The Committee strongly feels that the States should be impressed upon for judicious posting of teachers both for rational utilization of available manpower and rightful posting of teachers being recruited/to be recruited.

9.68 Shortage of teachers and a very high percentage of untrained teachers have been the main constraints of SSA. The very fact that a number of States continue to have a very high percentage of untrained teachers is a serious reflection on the claims of impressive level of achievement of SSA goals. What is more disturbing is that central funds continued to flow for in-service training, induction training and training of untrained teachers during the last three years with specified number of teachers targeted to be trained. The Committee is of the firm view that an effective monitoring mechanism to track the level of different categories of training of teachers should be in place without any further delay.

National Programme of Mid-Day-Meal in Schools

9.69 State-wise details of Kitchen-sheds to be constructed under the MDM Scheme reveals a very discouraging scenario. In States like Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan and U.P., gap between the sanctioned Kitchen- sheds and constructed upto 2009-10 remains very wide. The Committee hopes that with the revised enhanced cost of construction for Kitchen-shed, pace of construction would pick up. However, this needs to be constantly monitored.

9.70 The Committee observes that the National Level Committee constituted by the Department on 30 July, 2009 to examine the expansion of MDM Scheme or privately managed unaided schools with focus on tribal areas and minorities is yet to give its Report. The Committee feels that considerable time has lapsed since the setting up of this Committee. The Department needs to pursue with the Committee for submission of Report at the earliest.

Teachers’ Education

9.71 The Committee observes that although the Department admits that it is important to fill up vacant academic and non-academic posts in DIETS, CTEs and IASEs, it has failed to highlight corrective steps taken, if any, to fill those vacancies. The Committee would like the Department to chart out an action plan for filling up all the sanctioned posts to make these institutions functional in the real sense.

9.72 The Committee observes that it is imperative for the Department to ensure that teacher education schemes are given prime focus by all the States. The Committee would like to be apprised whether the Department is facing difficulties in this particular aspect from States/UTs and what remedial/corrective steps it is taking to impress upon the States/UTs for laying requisite importance on teacher education. The Department may also inform the Committee whether NCTE has prepared the model syllabus and curriculum for various teacher training courses based on the National Curriculum Framework for Teacher Education.

Navodaya Vidyalaya Samiti

9.73 The Committee notes that some posts of teachers in all the categories have been filled up. However, still there is considerable gap between vacancies and filling up of posts. The Committee would emphasize the Department to fill up the remaining posts as expeditiously as possible as it feels that the absence of teachers deprives the students of quality education.

(e) 233rd Report on Action Taken by Government on the recommendations/observations contained in the Two Hundred Twenty Second report on Demands for Grants 2010-11 (Demand No.58) of the Department of Higher Education (Ministry of Human Resource Development)

Utilization of Funds

9.74 The Committee appreciates the initiatives taken by the Department regarding infrastructure development at the central universities. However, the Committee feels that still a lot needs to be done as the 200 work in at least 3 universities viz. Bihar, Kerala and Jammu, is yet to be finalized. A strict monitoring is required for the purpose to achieve any tangible results. It, therefore, again reiterates its earlier recommendation that a time schedule should be drawn up and timelines are strictly adhered to.

9.75 Problems being faced in the implementation of Oversight Committee recommendations have been cited as a major factor for under-utilisation of allocated funds. The Committee would like to point out that legal difficulties have already been resolved by the disposal of all the petitions on 10 April, 2008. More than two years have elapsed since then. This cannot be considered a justified reason. The Committee views with great apprehension the decreasing trend being noticed in the State contribution in GDP percentage on education. Equally disturbing is very meager increase in Central share from 0.61% in 1999-2000 to 0.91% in 2006-07. Required initiatives need to be taken both at the State and Central level.

Targets for Eleventh Plan

9.76 The Committee feels that the issue of enhancement of GER and access to higher education directly effects the careers of the students and therefore, needs special care and attention and requires expeditious implementation. Also the development of entrepreneurial skills and vocational education would go along with improving the employability of the students. The Committee therefore, again recommends that a better and effective mechanism may be evolved to provide smooth and easy access to higher education so as to make them more employable.

Higher Education-quality and Need for Reforms

9.77 The Committee notes with disappointment the reply of the Department as it does not throw any reflection on various issues highlighted by it like monitoring of fees, quality of education in private universities, problems faced by students and parents, indiscriminate recognition of deemed to be universities, fake universities to name few. These problem areas may be dealt with when NCHER is established but till then these issues cannot be sidestepped and we cannot close our eyes to them. The Committee, therefore, desires that the Department must take corrective action to not only protect the student community from harassment but also ensure that these unwanted unfair practices especially in the private sector run institutions must be handled with strong hands.

Vacancies in Faculties of Central Universities

9.78 The Committee appreciates the efforts made in implementing the faculty Recharge Scheme but feels that it is still lying at a nascent stage only. It appears that only half backed reply has been giving. The Committee, therefore, desires that the scheme may be implemented more speedily and its complete and up-to- dated status may be furnished at the earliest.

Private Universities in the Country

9.79 The Committee is constraint to note that no corrective steps have been taken by the Department to control whims of the Private Universities which are functioning as independent entities without adhering the rules and regulations of the UGC (Establishment of and Maintenance of Standards in Private Universities) Regulation, 2003. As per the data made available by the Department, out of 60 Private Universities, only 29 Private Universities have been inspected by the UGC under its Act as on 19th May, 2010. The Committee notes that it is matter of serious concern to check functioning, including quality of education, faculty position, fee structure, syllabus standard, etc., of these Universities. The Committee opines that more and more stringent regulations should be brought in by the Department so as control disorder prevailing in these universities.

Status of Women in Higher Education

9.80 It is matter of serious concern that out of 185 proposals received from various Universities and Colleges for establishment of Women Study Centres, only 65 proposals were approved by the Standing Committee established by the Department. It seems that the norms framed by the Department for the establishment of the Women Study Centres are strict. The Committee recommends that the Department should 201 simplify these norms and a drive should be launched so as to cover more and more States for this purpose, which, in turn, would promote the higher studies amongst women.

Construction of Women Hostels for Colleges

9.81 The Committee had been given to understand that under this Scheme, preference is given for the construction of Women Hostels for colleges located in rural areas followed by those located in urban areas and lastly in metro cities. State-wise details furnished by the Department clearly indicate that Women Hostels set up in urban areas is higher than those set up in rural areas. Not only this, the Committee is surprised to note that gap between urban and rural areas Women Hostels is very wide in respect of some States, i.e. Andhra Pradesh (Urban-9 and Rural-51), Madhya Pradesh (Urban- 51 and Rural -22), Maharashtra (Urban-468 and Rural-139) and Rajasthan (Urban-34 and Rural-1). The Committee views with serious concern on non adherence to the prescribed norms. The Committee is also constrained to observe that funds released to various States are less than half of total allocated funds position being very unsatisfactory in respect of Women Hostels located in rural areas. The Committee strongly feels that this scheme is yet to take off in the real sense. The Committee, accordingly, reiterates that an assessment about the status of Women Hostels for colleges needs to be made without any further delay, followed by corrective measures.

Educational Loan Interest Subsidy

9.82 As pointed out by the Committee earlier, higher education being costlier is getting beyond the reach of middle class, leave alone the poor masses of the country and the ceiling of Rs. 4.5 lakh parental income per annum needs to be raised appropriately in view of increasing financial burden due to general inflationary trend. The proposal of the Department for setting up a National Education Finance Corporation (NEFC) for refinancing of educational loans to students would not help in meeting the financial requirements of the students. Even if it is implemented, students should be given soft loans on subsidy basis. The Committee, therefore, recommends that those students who has been selected by scheduled public sector banks which are covered under National Education Finance Corporation (NEFC) should be directed to provide soft loan to the students who desire to pursue the higher studies and that the process should be speedily computed.

(f) 234th Report on the Central Educational Institutions (Reservation in Admission) Amendment Bill, 2010

Consultation Process

9.83 The Committee feels that the proposed definition of the term ‘State seats’ would serve the purpose and it is not necessary to define the eligibility criteria to be followed in this behalf as it should be left to the institution itself to determine the same as per demographic pattern of the State in which the institute is situated.

Clause 2: Amendment of Section 2 relating to Definitions

9.84 The Committee while agreeing to the concept behind the insertion of the proposed definition of the term ‘State seats’ endorses the amendment which may help in fulfilling the aspirations of the local population as well as paving the way for 27 per cent OBC reservation in these areas of the country. The Committee also takes note of the fact that, apart from NITs, there was no other category of CEIs, whether Central Universities or IITs/IIMs, which provided for “State seats”. The Committee was also given to understand that the proposed insertion in the Act would go a long way in taking care of the interests of the local population of the States in which NITs were situated.

Clause 3: Section 3-Reservation of seats in Central Educational Institutions

9.85 While the Committee is convinced with the proposed amendment in Section 3, it would like to point out that there are conceptual difficulties in determining the OBC reservation in the States. While the SC/ST reservation may be definite, it is the OBC reservation which may differ from State to State. The Committee is also aware of the fact that reconciliation has to be made between 50 per cent cap on reservation and 27 per cent OBC quota. The Committee is of the view that OBC percentage is to be decided by taking SC and ST

202 reservation as a compulsory component. Since the extent of reservation is 50 per cent whatever remaining after fulfilling the SC/ST reservation may go to OBCs.

9.86 Regarding adhering to the limit of 50 per cent reservation, the Committee would like to point out the case of Tamil Nadu, where 69 per cent reservation to backward classes has been allowed by the apex court. The apex court has permitted the State to increase the 50 per cent limit in case the quantification of data about OBC in the State as determined by the State Backward Class Commission justified such increase. In the light of the above the Committee feels that the Department may take a view in the context of those States where data is available.

Clause 5: Section 5-Mandatory increase of seats.

9.87 The Committee would like to point out that concerted efforts are required to be made by all concerned for enforcement of the reservation quota for OBCs as well as SCs and STs. Enactment of the principal Act followed by the proposed amendments brought about due to the existing ground realities can be considered the first phase of fulfilment of our cherished goals of bringing the marginalized and less privileged youth force into the mainstream. The Committee finds that this major initiative has been substantially strengthened by providing central funds amounting to Rs. 1724.89 crores to CEIs for developing the infrastructure and having the required teaching and non-teaching staff in place. Feedback given by the Department indicates that a beginning has already been made in NITs with expansion of boys hostels, construction of additional lecture halls/Classrooms, Faculty Quarters, dining halls, purchase of lab equipments and other accessories

(g) 235th Report on the Juvenile Justice (Care and Protection of Children) Amendment Bill, 2010

Consultation Process

9.88 The Committee appreciates the intention of the Ministry in bringing about this amendment for removing discriminatory provisions in the JJ Act as early as possible. However, the Committee is of the opinion that views of State Governments and NGOs should have been taken as the implementation of the Act lies in their hands. The practical difficulties faced in the proper functioning of Homes along with their monitoring through Child Welfare Committees and Juvenile Justice Boards should be taken into consideration as this amendment is likely to result in increase in the number of juveniles/children affected by the above mentioned diseases in the Homes. It is the responsibility of State Governments/UT Administrations to set up, maintain and upgrade the Homes for children either by themselves or through voluntary organization. The Committee, therefore, is of the opinion that views of at least those States having large number of Homes may be sought so as to initiate required action along with enforcement of proposed amendments.

Section 48 (2)

9.89 The Committee welcomes the amendment of the Ministry in JJ Act which seeks to do away with the discriminatory provisions so that a child/juvenile suffering from leprosy or sexually transmitted diseases or Hepatitis B or open cases of Tuberculosis or is of unsound mind and such other diseases enjoys equal status as other citizens without any segregation or isolation. However, the Committee expresses its concern regarding the likelihood of adverse impact of juveniles who may be suffering from acute mental disorder (sometimes of a violent nature) or suffering from sexually transmitted diseases on the other normal healthy children. Committee's apprehensions are based on the ground realities prevailing in the Shelter Homes. Nobody would deny that fact that they cannot be equated with normal families residing in an overall atmosphere of hygiene and healthy conditions supplemented with love and affection of family members for each other. The Committee, therefore, is of the firm opinion that a close watch and monitoring of such juveniles needs to be kept, if they are not segregated from the other healthy children, to avoid any infection or adverse impact. The Committee recommends the Ministry to devise ways for proper monitoring of such children without their segregation.

9.90 Another area of concern highlighted by the Committee was the discrimination against the HIV affected children all over the country. Various cases of discrimination keep on being reported from different States at regular intervals where HIV affected children were boycotted in the schools. The Committee strongly feels that discrimination against HIV affected children also needs to be removed by incorporation of necessary provisions

203 in the JJ Act. The Committee, accordingly, recommends the Ministry to make appropriate amendments after necessary consultations with respect to HIV affected children so that equality and dignity of such children is also maintained.

(h) 236th Report on Prohibition of Unfair Practice in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010

Consultation Process

9.91 The Committee is not happy with the level of consultations undertaken by the Department with respect to the Bill. There has been lack of a thorough consultative process while drafting such a historic piece of legislation having a wide-ranging impact on the functioning of higher educational institutions spread across the country. The Committee is dismayed to observe that other major stakeholders, i.e. statutory regulatory bodies like UGC, MCI, AICTE etc. remained a part of the formal exercise only. On a specific query in this regard, the Ministry has candidly admitted that no direct consultations with regulatory bodies like MCI, DCI, etc. have been undertaken since consultations with these bodies are internal to the Ministry of Health and Family Welfare, being under the purview of that Ministry. Presence of Chairman, Academic Cell, MCI in the CABE Committee meeting was considered adequate enough. The Committee is compelled to point out that this line of action has been taken by the Department in respect of its own regulatory bodies like UGC and AICTE. Like MCI, UGC and AICTE only remained a part of the unanimous endorsement for the need for such a law at the CABE Committee meeting.

Issues not Covered in the Bill

Scope of the Bill

9.92 The Committee observes that the National Council for Teacher Education has been left out from this list. The definition of ‘institution’ as given in clause 2(e) is not very specific. The Committee is of the firm view that instances of unfair practices need to be curbed in all categories of higher educational institutions be it Central Universities, deemed to be universities, State Universities, all higher educational institutions including institutions of national importance. All such institutions should have the same governance pattern. Any ambiguity in this regard should, therefore, be removed from the Bill, by having specific definitions at the appropriate place. The Committee would like to draw the attention of the Department to the definitions of terms, ‘higher educational institution’ ‘college’ and ‘Central Educational Institution’ as given in the Educational Tribunals Bill. The Committee also takes note of the clarification given by the Department with regard to coverage of institutions under the proposed legislation. The Committee strongly feels that it would be appropriate to have a very specific definition about the coverage of all categories of institutions intended to be covered under the ambit of the proposed legislation. The Committee, therefore, is of the view that detailed definition of institutions as given under the Educational Tribunals Bill, 2010 should be the benchmark of this legislation. One must not forget that one of the powers assigned to the Educational Tribunals is to handle matters relating to use of unfair practices by any higher educational institution. Necessary modifications may be carried out accordingly.

9.93 The Committee would also like to point out that the Educational Tribunals Bill, 2010 is mandated to provide effective and expeditious adjudication of disputes involving teachers and other employees of higher educational institutions and other stakeholders including students. It would have been appropriate if specific provisions relating to unfair practices where teachers/employees are the victims were also incorporated in the Bill on the pattern of what is envisaged for students. The Committee, accordingly, recommends that necessary additions/modifications may be made at the relevant places in the Bill.

Definition of the term ‘Unfair Practices’

9.94 The Committee observes that all the unfair practices are not covered in the Bill at present and accordingly penalties have been prescribed only for specific unfair practices as enumerated therein. Clause 14 relating to ‘Penalty for which no specific provision is made under the Act’ can take care of such unfair practices but that would be to a limited extent only. It also needs to be kept in mind that quantum of penalty in this

204 clause extending to five lakh rupees/ten lakh rupees is very less when compared with specified unfair practices. Secondly, the Committee’s attention has been drawn to the provision of Educational Tribunals Bill, 2010 which lays down that State Educational Tribunals would be empowered to handle only those matters relating to use of unfair practices by any higher educational institution which have been specifically prohibited under any law for the time being in force. In such a scenario, the Committee foresees situations where students become victim of unfair practices not specifically covered in the present Bill and thus denied any relief under the Educational Tribunals Bill. Clause 14 of the Bill does not serve the purpose as there may be unfair practices having higher level of victimization which would need specific deterrent action. The Committee, therefore, is of the firm view that an enabling clause taking care of unspecified unfair practices needs to be incorporated in the Bill.

Bill disclosure-based impact thereof

9.95 The proposed legislation has been termed as a disclosure based one emphasizing heavily on transparency. The Committee, however, would like to point out that even though self-disclosure of information by institutions is a positive trend but there is policy constraint with respect to some of the unfair practices which may be justified after being covered in the Bill. Clause 5 enumerates the various details which are to be included in the prospectus. Clause 9 provides penalty for doing contrary to information in prospectus. However, examination of clause 5 reveals that while details like intake capacity, eligibility criteria of students and educational qualifications are to be as per statutory authority specifications, details relating to fee and other charges, the percentage fee to be returned, admission procedure, details of teaching faculty, salary structure do not have such a reference. The Committee, accordingly, recommends that all the details to be given in the prospectus should have a reference to the statutory specifications/norms.

Handling of Frivolous Complaints

9.96 The Committee, while deliberating on the Bill came across apprehensions expressed by the private stakeholders with respect to frivolous complaints which may unnecessarily drag the institutions into multiple litigations. The Committee observes that there is a specific provision i.e. clause 45 regarding ‘Dismissal of frivolous or vexatious complaints’ incorporated in the Educational Tribunals Bill which adequately takes care of apprehensions of private stake-holders.

Grievances Redressal Mechanism

9.97 The Committee would like to point out that the Department’s response clearly indicates that all the institutions in the country do not have such an internal mechanism at present. Secondly, perusal of clause 17 read with definition of the term ‘service rules’ as given in clause 3 (1) (X) of the Educational Tribunals Bill, 2010 pertaining to teachers or employees indicates that apparently students are not covered under this provision. The Committee observes that there needs to be a mechanism in place at the institution/university level in the form of a committee having independent members also which has the power/authority to examine any complaint/grievance in the first instance and resolve the dispute amicably. Only in the event of a stalemate or either party remaining dissatisfied, process for imposing of penalties may start. This will be in the interest of both the students and institutions as the students would not have to approach the tribunal for redressal of their complaints and it will also curb frivolous complaints against the institutions. Further, it would also help in lessening the burden of State Educational Tribunals. The Committee opines that the Department should think of such a middle path in the interest of both the students and institutions.

Clause 1: Short Title, Extent and Commencement

9.98 The Committee would like to point out that the proposed legislation in its Chapter II deals with ‘Conducting tests for Admission, Publication of Prospectus and Prohibition of collection of Capitation Fee etc. and Chapter III pertains to ‘Imposition of Monetary Penalties’ and also adjudication of penalties by the concerned State Educational Tribunals. The Committee is aware of the fact that no uniform date can be prescribed for coming into operation of all State Educational Tribunals. The Committee, however, is of the view that a specific period of one year or six months can be laid down for setting up of State Educational Tribunals. So far as Chapter II of the proposed legislation is concerned, the same needs to be implemented immediately on being notified in the Official Gazette. The Committee, accordingly, recommends that necessary

205 modifications may be made in clause 1(3) of the proposed legislation and also in the relevant clause of Educational Tribunals Bill, 2010.

Clause 2: Definitions

9.99 The Committee is very well aware with the prevalent trend of capitation fees in the higher educational institutions especially in medical and engineering colleges. During the study visit of the Committee, it was pointed out by students that admissions did not take place on merit but on the basis of capitation fee. In the name of ‘other charges’, capitation fee was being asked from the students at the time of admission. The Committee, therefore, believes that "other charges" to the extent possible should be specified in the Act itself so that there is no scope left for the institutions to demand “capitation fee” in the garb of other charges from the students. The Committee also takes note of a suggestion that amount of excess of tuition fee should be specified so as to identify it as capitation fee. Ten per cent excess of tuition fee can be the benchmark for identifying ‘capitation fee’. The Committee is of the view that the definition of ‘capitation fee’ be made more specific so as to curb the malpractice of capitation fees demanded by the institutions thereby protecting the interests of students and their parents.

Clause 3: Prohibition of Accepting Admission Fee and Other Fees and Charges Without Receipt

9.100 The element of helplessness and total lack of initiative on the part of the Department inspite of there being a specific Supreme Court directive is not acceptable to the Committee. Charging of exorbitant fees with no rational basis whatsoever is an unfair practice which needs to be tackled without any further delay. The Committee wonders how the mere fact of putting the details of fees in the prospectus will justify the fees inspite of their being exorbitant or irrational. The Committee foresees another emerging scenario on the enactment of such a legislation. Charging of any amount of fees would become unchallengeable once the same are included in the prospectus. The Committee would appreciate if Supreme Court observations that State Committees regulating admission procedure and fee structure have to continue only as a temporary measure until the Central Government or the State Governments are able to devise a suitable mechanism and appoint a competent authority, are acted upon in the real sense.

Clause 4: Prohibition of Admission without Specified Admission Tests or Inter se Merit for Selection of Students

9.101 The Committee would like to emphasize upon the main purpose of this provision which is to have a transparent admission process based either on entrance test or on inter se merit of students. Once this is accomplished, allegations of admission tests conducted by private institutions being only farcial and also not based on inter se merit of students can be checked in the real sense. The Committee feels that there should be no scope for manipulation/malpractices in conduct of entrance tests. The Committee finds the above provision appropriate enough. However, the implementation mechanism therefor has to be made tamper-free and foolproof. Accordingly, the Committee recommends that effective regulation and monitoring of entrance or admission tests must be done to make the admission process more credible and authentic without infringing the autonomy of institutions/universities.

Clause 4(3)

9.102 The Committee taking note of the reservations expressed by the stakeholders is of the view that it may not be practically possible for an institution to exhibit entire records of the selection of students on the website due to bulkiness of the records which would include answer sheets of the students. Also, the students may not feel comfortable if their answer sheets are publicly displayed for all to see and therefore would violate their privacy. However, the Committee believes that it is appropriate for an institution to maintain entire records of the process of the selection of students and produce the same whenever called upon to do so by the appropriate statutory authority under the Act. This would help in ensuring a transparent and fair process of selection of students. 206 Clause 5: Mandatory Publication of Prospectus, its Contents and its Pricing.

9.103 The Committee is not convinced by the clarification given by the Department that all statutory obligations could be prescribed in the prospectus under sub-clause (xii) of clause 5(1). The Committee wonders when reference to appropriate statutory authority/prescribed norms can be made with reference to the number of seats, eligibility criteria, educational qualifications, syllabus details, omission of such a reference with regard to fee details, refunding thereof, and admission/selection process of students, details of teaching faculty has been made. The Committee would like to point out that any deviation in respect of such details is likely to hit both the students and teachers.

9.104 The Committee finds some substance in the contention of the stakeholders about feasibility of including details of syllabus of all the courses and faculty members. The Committee is of the view that keeping the practicability aspect in mind, details regarding fee, number of seats, eligibility criteria for admission and the process of admission/selection and infrastructure need to be given in the printed prospectus which is as per the present practice. However, full details regarding faculty and syllabus can be put on the website.

9.105 Another important issue highlighted in this clause was the need for having qualified faculty as per the prescribed norms. There have been many instances where less qualified faculty and even fresh pass outs are engaged by the institutions for teaching. As per this provision, the institution would have to give details of the teaching faculty, their educational qualifications, teaching experience and minimum pay and other emoluments payable for each category of teachers and other employees. However, mere publication in the prospectus by an institution about its faculty which may not be qualified as per norms or even absence of adequate number of faculty can make it justified since the institution has disclosed the information in its prospectus. The Committee, accordingly, recommends that reference about prescribed norms/statutory obligations should be there in respect of faculty details also. Secondly, it may happen that a faculty member may leave the institution or a new faculty member may join the institution mid-session. The Committee is of the view that institutions should have the option to make necessary changes in the website in the event of the faculty members leaving or joining.

Clause 6: Prohibition of Capitation Fee

9.106 The Committee fails to understand how agents or middlemen could be covered under clauses 8 and 13. Both these clauses pertain to misleading/untrue advertisements given by institutions or persons authorized by them and action to be taken against the institution. The Committee would like to point out that demand for capitation fee is not done through advertisement. This activity is always done in a dubious manner without giving any publicity whatsoever. The Committee also observes that demanding of capitation fee by any institution is strictly prohibited under clause 6 and action is liable to be taken against an erring institution as envisaged in clause 10.

9.107 The Committee recommends the Department to take into consideration the provision in State laws which are very clear and specific so that not only the institutions but also any person who is in-charge of or is responsible for the management demanding capitation fee or donation for admission to any course or programme of study come within the ambit of the legislation and action may be taken against them. The Committee, accordingly, recommends that clause 6(1) may be modified accordingly.

9.108 The Committee finds that clause 6(2) of the Bill is vague as any parent/guardian offering/paying capitation fee/giving donation may fall under this provision. Clause 14 prescribes that whoever committing an offence under the Act for which no penalty has been specified elsewhere is liable to a penalty extending to five lakh rupees. He can also be covered under clause17(1) whereunder any person contravening/attempting to contravene/abetting the contravention of provision(s) shall be punishable for imprisonment for a term upto three years or with fine or both. The Committee feels that such a provision is not required. This provision is also not there in the State laws. The Department may rethink about the inclusion of this provision in the Bill.

207 Clauses 9, 10, 11, 12, 13 and 14 Relating to Penalties

9.109 The Committee takes into cognizance the fact that a uniform amount of penalty for all types of offences is against the principle of natural justice. There should be different penalties for different violations and the penalties should also be proportional to the offence. A major and minor violation cannot be treated as equal. The Committee, accordingly, recommends to the Department that the quantum of penalties under these provisions needs to be worked out with reference to case to case basis based on merit of each case or violation.

9.110 The Committee is of the view that a penalty of Rs. one crore for charging of capitation fee will act as an effective deterrent for institutions/individuals involved in such an activity. The Committee also recognizes the need for specifying a minimum penalty for violations as it is believed that all offences under the Act should be treated as serious as they affect the interests of students and may put their future at stake. The Committee, therefore, would like the Department to take into consideration the various implications of the violations of these provisions on the students especially and then arrive at a maximum and minimum amount of penalty for the violations.

9.111 The Committee believes that insertion of the word ‘knowingly’ in clause 9 is unnecessary and it would dilute the objective of the provision as violators of this provision may take a plea that this offence was not done ‘knowingly’ by them. The Committee, accordingly, recommends the deletion of the same.

9.112 The Committee observed that clause 14 dealing with penalty for which no specific provision is made under the Act, did not seem to be reasonable and clearly worded. When asked to clarify, the Department stated that this provision had been included so as to ensure that if any penalty was not prescribed anywhere in the legislation, still the act of omission or commission mandated by the legislation was executed by the institution. For example, as per clause 5, it was mandatory for the prospectus to be published and if the any institution failed to do so, then the office-bearers could be proceeded against as per clause 14. While the Committee finds the contention of the Department reasonable, it would like to draw its attention towards clause 17 relating to ‘offences’ whereunder any contravention/attempt to contravene/abetment in contravention of any provision of the Act/Rules was to be considered an offence. This clause proposes imprisonment upto three years or with fine or with both. The Committee observes that along with specific clauses dealings with specific offences, a general provision i.e. clause 14 dealing with all such offences for which no penalty has been prescribed, the justification for having another general clause (clause 17) dealing with all contraventions of the provisions of the Act/rules made thereunder does not seem to be there. To quote the Department, non-publication of prospectus as envisaged in clause 5 can also be considered an offence under clause 17 as it would be in contravention of clause 5 and accordingly imprisonment/fine or both can be imposed. At the same time, it is also liable to be covered under clause 14. The Committee, therefore, is of the view that it would be appropriate to review clauses 17 and 14 and retain the clause which is required in the Bill. The Committee recommends to the Department for revisiting this provision and analyzing the need for it in the proposed Legislation.

Clause 16: Adjudication of Penalty

9.113 The Committee is of the opinion that in the absence of any time-line, there is every possibility that adjudication by the Educational Tribunal can be a prolonged affair which would definitely go against the interests of the students. The Committee strongly feels that a specific time-line for disposal of cases needs to be laid down so as to ensure that grievances/complaints of students/teachers/other employees are disposed of at the earliest. An effective Grievance redressal mechanism along with time-limit prescribed through rules/regulations/norms for disposal of cases by Educational Tribunals can prove to be beneficial for the affected parties. The Committee would appreciate if necessary provisions are incorporated at the relevant place.

Clause 17: Offences

9.114 The Committee is of the view that with State/National Educational Tribunals being given the authority to adjudicate in the matter relating to contravention of provisions of the Act, inclusion of a provision whereunder notwithstanding award of penalty by Educational Tribunals, imprisonment for a term extending to three years or with fine or both, does not seem to be justified. Similarly, on non-payment of penalty imposed by Educational Tribunal or non-compliance of its directions/orders, prison term extending to three years or with

208 fine from rupees fifty thousand to rupees five lakh or with fine is also proposed. The Committee finds even this provision to be somewhat harsh. It is also not clear which authority would be designated for this task. The Committee has also taken note of clause 36 of the Educational Tribunals Bill, 2010, whereunder non- compliance of any order of State Educational Tribunal is liable to be punishable with a imprisonment term extending to three years or with fine upto ten lakh rupees. The Committee is of the view that with a specific provision (clause 36) already incorporated in the Educational Tribunals Bill, 2010, inclusion of similar provision having another penalty provision does not seem to be based on justifiable grounds. The Committee feels that right course of action would be to have the provision in the Tribunals Bill, 2010 and the present legislation need not focus on that aspect. Clause 17 may, accordingly, be deleted.

9.115 The Committee is not fully convinced by the contention of the Department for denying the aggrieved party opportunities to approach the courts directly. There are bound to be cases where due to unfair practices resorted to by an institution, career as well as future prospects of a student are at a stake. It may so happen that he is being denied a seat wrongfully, or his certificates are being not returned or there have been unfair practice in the conduct of examination. Urgent remedy could be awarded for them. Thus, it is more than clear that in the event of only very genuine grievance of the affected party where all the prescribed channels have failed to provide relief, it would be compelled to approach the court. Here also at the final stage when the time is running out, one is made to approach the designated authority in the first instance which would defeat the very purpose of having such a provision. This mechanism would be available to institution authorities who might be implicated in a false case. It is true that such cases would be rare but justice needs to be provided to all. The Committee feels that the provision in the Educational Tribunals Bill, with the specific provision for debarring of only civil court and thus criminal courts being authorized, a provision like clause 18 does not seem to be required. Necessary modifications may be carried out accordingly.

Clause 21: Offences by Institutions

9.116 The Committee is of the view that making authorities like Governor and Chancellor (they can be Vice President or President) liable for punishment cannot be considered proper from any angle. Such provisions are not there in the State Acts. Authorities included under the provision of 21(2) are misplaced, accordingly the same may be modified.

Clause 23: Burden of Proof

9.117 The Committee is in full agreement with the submission of the Department that putting onus on educational institutions would make the institution assume greater responsibility in informing students and other stakeholders about its standard of quality, infrastructure etc. According to the Committee, the provision seems to be justified specially in view of the fact that aggrieved party would be a student/ his parents who would be approaching a Tribunal against the management of an institution. The institution would be more economically efficient than the aggrieved student or his/her parents and the burden of proof should therefore lie with the accused.

Clause 26: Non-applicability of this Act to Minority Institutions in Certain Cases

9.118 The Committee will like to draw attention to the Supreme Court judgment in TMA Pai case where the Apex Court, endorsing the concept that there should be no reverse discrimination has observed that “the essence of Article 30 (1) is to ensure equal treatment between the majority and the minority institutions.” Accordingly, no one type/category of institutions should be disfavored, or for that matter, receive more favorable treatment than other. The Committee feels that the present provision can lead to an interpretation whereby any instance of unfair practice resorted by a minority educational institution may not be acted upon. It needs to be ensured that interests of all the students including those studying in minority institutions are safeguarded. Therefore, a specific provision is required to be there which will clearly bring the minority educational institutions within the ambit of the legislation without violating their rights under Article 30.

209 (i) 237th Report on the Foreign Educational Institutions (Regulation of Entry and Operations) Bill, 2010

Expert Committee Recommendations

9.119 The Committee feels that recommendation regarding initial approval that too for only those Foreign Education Providers duly accredited in the home country followed by extension of approval after review of their performance needs to be looked into. The Committee would like to point out that clause 4(3) as presently worded does not make the accreditation status of Foreign Education Provider mandatory. The Committee is also not inclined to agree with the contention of the Department that franchising was not being permitted in view of track-record of Foreign Educational Institution being the criterion. The Committee would like to point out that as per clause 13, Foreign Educational Institutions conducting certificate courses are only to report their activities to the Commission and publish the required information on their website. Such Foreign Educational Institutions can operate not only on their own but also through collaboration or partnership and franchising can be a partnership between a Foreign Educational Institution and Indian Institution.

9.120 The Committee would also like to point out that acute shortage of qualified and experienced Faculty in higher educational institutions in the country is a cause of serious concern. Nobody would deny the fact that with the entry of Foreign Educational Institutions in the country, this problem is bound to aggravate further. The Committee, therefore, strongly feels that as recommended by the CNR Rao Committee, Government has to put in place adequate safeguards against poaching of Indian Faculty by Foreign Educational Institutions. The Committee would like to emphasize that all these recommendations of the CNR Rao Committee need to be suitably reflected either in the Act or rules/regulations to be made thereunder.

Status of Foreign Educational Institutions in Other Countries

9.121 The Committee takes note of all the models or guidelines adopted by different countries regulating the entry and operation of foreign educational institutions. Different countries have legislation in this regard which suit their own system. The socio-economic set-up of India is different from the other countries which cannot be blindly followed. The Committee is of the view that experience of these countries where Foreign Educational Institutions have already been operating needs to be analyzed and conditions like entry by invitation and mandatory accreditation in home country can be adopted, at least for the initial years. The Committee finds no harm in a cautious approach in the initial period so as to fully protect the interest of students as well as maintain the required standard of higher education.

General Issues

Reservation Policy

9.122 The Committee endorses the view of the Department that since the reservation law is not applicable to private higher educational institutions, at present, it can not be made applicable to Foreign Educational Institutions also for the time being. However, as and when a law is enacted by Parliament to provide for reservations in private higher educational institutions, the same will be applicable to Foreign Educational Institutions also.

Independent regulatory mechanism for safeguarding the interest of students studying in FEIs

9.123 The Committee is of the opinion that although UGC has been empowered to regulate the entry and operations of the Foreign Educational Institutions but it does not have enough teeth to effectively deal with Foreign Educational Institutions in the stricter sense of a regulator required for the purpose. The Committee therefore, desires that an independent body should be there specifically for better effective monitoring of the wide ranging areas such as curriculum, fee, faculty, salary structure etc. from the point of view of its implication in the Indian scenario as well for protecting the interests of students, teachers and other employees.

9.124 The Committee also takes note of AICTE Regulations for Entry and Operations of Foreign Universities/ Institutions imparting Technical Education in India, 2005 which are limited to technical education. One of the objectives of these Regulations is to safeguard the interest of student community in India and ensure

210 uniform maintenance of norms and standards as prescribed by various statutory bodies and also to enforce accountability for all such educational activities by Foreign Universities/Institutions in India. These Regulations, accordingly, have specific provisions about inspection of Foreign Educational Institutions, submission of Annual Reports to AICTE, accreditation by NBA and mandatory nature of advice given by AICTE to such institutions. The Committee finds that these Regulations could be framed due to specific powers and functions given to AICTE under the Act itself. However, no such powers are envisaged to be given to UGC or any other body or Council or Commission established under any Central Act for the time being in force to regulate the entry and operation of Foreign Educational Institutions. The Committee is of the view that power of withdrawal and rescission of notification of Foreign Educational Provider given to UGC cannot be equated with the other regulatory and monitoring functions as provided for in the AICTE Regulations. The Committee, accordingly, is of the view that specific powers need to be incorporated in the Act itself so as to facilitate the framing of regulations once the Act comes into force.

Migration of Faculty

9.125 Increasing number of higher educational institutions being set up, both in the Government and private sector has led to a situation when acute shortage of qualified and experienced faculty is being faced across the country. A number of initiatives taken by the Government to attract young students towards teaching profession have so far failed to show any significant improvement. In such a scenario, with the arrival of Foreign Educational Institutions/Foreign Education Providers, this problem is bound to get further aggravated. The Committee, therefore, opines that some viable norms can be prescribed regarding the hiring of teachers by Foreign Education Providers from India and bringing in some percentage of the faculty from their country. An indirect positive impact of having such an arrangement would be that Indian teachers would get an opportunity to work in tandem with their foreign counterparts and vice-versa.

Location of Foreign Educational Institutions

9.126 Higher education in the country has witnessed a tremendous growth both in the private and Government sector. While there is no doubt that more and more institutions are within the reach of our students, it has also led to an unbalanced expansion. There are States having very high concentration of institutions offering various professional courses. In contrast, many States continue to lag behind. Concerns have also been raised about Foreign Educational Institutions being set up, by and large in big cities. In such a scenario, the Committee is of the view that besides sensitivity of the location, availability of higher educational institutions in that particular area should also be the criterion for grant of approval to a Foreign Educational Institution. Given large regional disparities in levels of education and footprint of educational institutions, Government must consciously foster arrangements in the location pattern of foreign institutions to mitigate these imbalances.

FEIs will restrict to only more popular and profitable courses

9.127 The Committee takes note of the apprehensions of the stakeholders as well as the limitations of the Government in restricting the Foreign Educational Institutions to offer specific courses. It is equally true in the context of Indian higher educational institutions, specially in the private sector. Professional courses like management, computer science and IT continue to show an ever-increasing demand, resulting in an unbalanced growth. Situation has reached to such an alarming level that basic science and humanities courses are being sidelined. In such a scenario, entry of Foreign Educational Institutions would worsen the situation further. As per a study conducted by NUEPA in 2004, only 5 out of 131 Foreign Education Providers in India were offering general courses like BA/BSc and as many as 55 were offering Hotel Management and 45 MBA. The Committee finds that the situation has remained unchanged. As per AIU study of 2010, out of 60 Foreign Educational Institutions operating through academic collaboration, only one or two were offering general courses. Similarly, all the 49 Twinning Programmes were restricted to MBA, Hotel Management courses only. The Committee is of the view that as suggested by AICTE, industry job mapping vis-àvis the number of seats available in each discipline should be undertaken in the country so as to have an idea about the ground realities. Based on these findings, feasibility of allowing operation of FEIs for specified courses can be explored and implemented accordingly. 211 Vacant Seats in Technical Institutions

9.128 The Committee recommends that an assessment at the ground level about the percentage of seats being offered in different programmes of higher education, both in the private and Government sector needs to be undertaken at the earliest. Only then, a clear picture about the demand and supply level would emerge. With the entry of Foreign Educational Institutions, urgency of such a survey has become more evident. Department being the nodal agency, has to play the lead role in coordination with State authorities.

Entry of low ranking institutions

9.129 The Committee opines that to begin with, only a specified number of top institutions in the world may be invited to open their centres of excellence in India. In this regard, experience of countries like Malaysia and China where entry of Foreign Educational Institutions was only by invitation can prove to be useful in the initial period. Based on the review of implementation status of the Act, restricted entry can be done away with.

Profit motive of FEIs and their integrity

9.130 The Committee is concerned over the motive of the Foreign Educational Institutions that may enter India. The Committee expects the Department to ensure keeping the unscrupulous institutions at bay by having a viable mechanism of monitoring of these institutions at various levels by the concerned regulatory bodies, both at the Central and State level. The Committee is of the view that recommendations of the CNR Rao Committee as well as the AICTE Regulations can be the benchmark based on which appropriate norms and guidelines and regulations for Foreign Educational Institutions can be formulated.

Clause 2: Definitions

9.131 The Committee is of the firm opinion that absence of any qualitative criteria is likely to create ample scope for entry of all kinds of Foreign Educational Institutions, irrespective of their standing in delivering quality education in their country of origin. This is all the more required when compared with the domestic institutions which are established by not-for-profit societies/trusts which have been registered in the country. The Committee would also like to point out that detailed procedure laid down in clause 4 to be followed by a Foreign Educational Institution to be notified as a Foreign Education Provider and the power given to Registrar to make inquiries through regulations will fail to ensure Foreign Educational Institutions meeting the requirement of providing quality education in India. Because this very provision lays down that the condition of accreditation from the accrediting agency of the home country would be applicable only if such a mechanism existed in that country.

9.132 The Committee observes that the definition of the term 'Foreign Educational Institution also covers those institutions offering certificate courses. Committee’s attention has also been drawn by clause 13, as per which such a Foreign Educational Institution need not be notified as Foreign Education Provider and can operate in India, only condition being submission of report to UGC as specified by regulations. The Committee, strongly feels that this may go against the interest of Indian students. The Committee, therefore, recommends that express provisions may be made in the Bill itself to cope up with such instances so as to protect the interest of the student community.

9.133 The Committee is of the view that the possibility of a Foreign Education Provider having campuses in several countries and students being forced to join any one of them but not one located in the home country does not seem to be very viable and will definitely not go in favour of students. The Committee would also like to point out that details to be given in the prospectus as envisaged in clause 6 do not include, any information relating to ‘twinning programme’. Further, inclusion of such information in the prospectus or in the rules/regulations will not in any way confirm the right of students to study in the country of origin. The Committee, therefore, recommends that in the definition of the term ‘twinning programme’, the words ‘partly in any other educational education situated outside India’ should be replaced by the words ‘its main campus in the country in which such institution is primarily established or incorporated’.

212 Clause 4: Foreign educational institutions to apply for being notified as foreign education providers

9.134 The Committee is of the opinion that many areas have been left open in this Bill. The Committee feels that the condition of Corpus Fund of fifty crore rupees can be relaxed in the case of Twinning Programme and smaller Foreign Educational Institutions. However, in the case of medical institutions, quantum of Corpus Fund needs to be enhanced. The Committee would also like to emphasize that there should be more stress on the quality and standards instead of the condition of twenty years of operation of the Foreign Educational Institutions in their home countries. The quality aspect can be easily taken care of by making prior accreditation mandatory. Further, Foreign Education Providers will be subjected to national laws, which will also include compulsory accreditation, once the National Accreditation Authority Bill was enacted. The Committee also takes note of the conditions laid down for Indian Institutions in whose case approval by statutory authorities is first given on provisional basis for a limited period of time, with further extension/permanent approval being subject to satisfaction of statutory authorities to be checked through regular/periodical inspection. The Committee is of the view that a viable mechanism on similar pattern for Foreign Educational Institutions also needs to be worked out.

Clause 5: Quality of programmes offered in India, use of income from Corpus Fund, and investment of surplus in generated revenue

9.135 While the Committee finds merit in the contention of the Department, it would like to point out that applicability of all Indian Laws to Foreign Education. Providers alone will not serve the purpose. A mechanism for monitoring of Foreign Education Providers and required follow-up action will also have to be in place simultaneously.

9.136 The Committee observes that as provided in clause 4(5), the Registrar has been entrusted with the responsibility of making inquiries so as to ensure that the Foreign Educational Institutions meets the requirements to provide quality education in India. For this purpose, regulations are to be formulated by the UGC under clause 15(2)(a). The Committee is of the view that some mechanism of precheck should be included in these regulations as incorporated in the AICTE Regulations for Entry and Operation of Foreign Universities/Institutions imparting Technical Education in India, 2005.

9.137 The Committee is well aware of the fact that the decision to de-recognise and de-notify the institution rests with the Government and not the UGC which is only a recommendatory body in such cases. The Committee would, however, like to point out that UGC, a statutory body is the regulatory body for higher educational institutions in the country whose recommendation will be forthcoming only after giving a reasonable opportunity of being heard to the Foreign Education Provider. Interest of students as well as teachers are fully addressed in sub-clauses (6) and (7). Secondly, recommendation of the UGC to the Central Government would be based on a detailed exercise which would also involve interaction with the management and other responsible/designated authorities, besides inspection of relevant records and infrastructure etc. Management being given another opportunity and decision of the Central Government to withdraw recognition or otherwise being based on any new facts being brought to the notice of the Central Government by any of the affected parties in a way negates the expert advice tendered by a statutory body. The Committee would also like to draw the attention to the AICTE Regulations for Entry and Operation of Foreign Universities/Institutions imparting Technical Education in India, 2005, whereunder AICTE after giving reasonable opportunity to the concerned institution through hearing or making inquiry is fully empowered to withdraw the registration granted to such institution.

9.138 The Committee recommends that a provision whereby the teachers, student council and parents can approach the UGC when the exercise of examining any violation of concerned laws/rules/regulations/orders by the Foreign Education Producer is going on. The other option could be that UGC is also involved/consulted in the event of any new facts beings brought to the notice of Central Government by the management, teachers, student council, parents.

213 Clause 8: Penalties

9.139 The Committee observes that same penalty has been prescribed on three different categories of entities i.e. a person associated with a Foreign Educational Institution not being a Foreign Education Provider, a Foreign Education Provider whose recognition has been withdrawn and a Foreign Education Provider, duly recognized and notified as such. What is more surprising is that different types of contraventions will attract same penalty, the only exception being forfeiture of the Corpus Fund of Foreign Education Provider.

9.140 The Committee is of the firm opinion that in line with the applicability of national laws on Foreign Educational Institutions/Foreign Education Providers, there should be no element of discrimination so far as imposition of penalty is concerned. This fact has been agreed to by the Government also.

9.141 The Committee finds it rather intriguing that while any person associated with a Foreign Educational Institution not being a Foreign Education Provider or whose recognition has been withdrawn is liable to be penalized for publishing/releasing misleading/wrongful advertisement, no such penalty is envisaged for a recognized Foreign Education Provider indulging in such an activity.

9.142 The Committee would like to emphasize that there should be no discriminatory approach in the handling of both Indian and Foreign Institutions. They need to be treated at par specially in the event of their contravening provisions of their nodal Acts as well as other relevant laws of the land which are supposed to be made applicable to them. The Committee would appreciate if provisions relating to penalties in both these legislations are reviewed and made uniformly applicable.

Clause 9: Power of Central Government to exempt

9.143 The Committee, after analysing the arguments put forth by the Department for having an exemption clause is of the view that concerns raised by the stakeholders cannot be totally ignored. Exemption proposed to be given is major ones. Not maintaining corpus fund of fifty crore rupees and as a result, no compulsion to utilize 75 per cent of the income from corpus fund for development of the institution and depositing the balance back in the corpus fund being there gives rise to viability of even reputed institutions in operating in a foreign country. Not only this, applicability of clause 8 relating to penalties on such reputed institutions will also be not there fully. The Committee would like to point out that such institutions will be exempted from clause 3 relating to prohibition on admission, collection of fees etc. by a Foreign Educational Institution unless being notified as an Foreign Education Provider under clause 4(8). As a result, penalty (Rs.10 lakh to Rs.50 lakh) for violating clause 8 (1) (a), i.e. offering or giving admission to any person or collecting fee or awarding any degree, diploma cannot be imposed on them.

9.144 The Committee also takes strong objection to exemption of reputed institutions from clause 6 relating to mandatory publication of prospectus. In the absence of such a vital piece of information enumerating all kinds of details about the institutions, it would be a difficult task for prospective students to have an actual idea about the availability of education facilities. Protection of interests of students in every respect has to be the top priority for all concerned. The Committee fails to comprehend the rationale for exempting reputed institutions from adhering to this very basic requirement. Rather availability of relevant details about an institution is bound to give publicity about its standing.

Clause 13: Foreign Educational Institution conducting certificate courses to report its activities to Commission

9.145 The Committee would like to point out that no doubt, inclusion of such a clause will facilitate the entry of more and more institutions which will give short duration vocational courses leading to immediate placements and thus becoming more popular among a particular strata of the society. However, there is every likelihood that such institutions may grow into an unmanageable proportion due to the lack of proper legislation. It may worsen the situation which the country is facing presently. The Committee is of the view that in the absence of any penalty provision proposed in the Bill for such Foreign Educational Institutions, mere furnishing of reports to UGC would remain an exercise on paper only. The Committee is compelled to draw attention to AICTE Regulations 2005 which have proved to be ineffective in curbing the activities of Foreign

214 Educational Institutions in spite of having sufficient checks. One must also not forget that the main objective of the proposed legislation to protect the Indian students from the various malpractices resorted to by a number of Foreign Educational Institutions operating in the country would perhaps remain partially achieved. The Department needs to look into this aspect thoroughly and put in place certain mechanism that will regulate the operations of such Foreign Educational Institutions.

9.146 The Committee observes that definition of the term ‘foreign educational institution’ covers those institutions also which offer certificate courses and which can very well apply for being recognized as a Foreign Education Provider under clause 4 and thus covered under other relevant clauses. In such a situation, another exclusive clause for Foreign Educational Institutions offering certificate courses to report only to UGC and publicize their activities cannot be considered a prudent policy decision. The Committee, accordingly, recommends deletion of clause 13.

(j) 238th on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010

Consultation Process

9.147 It is evident that consultation with all the stakeholders, which should have been ideally the starting point for formulating such a crucial piece of legislation for quality control of higher education sector in the country remained the least priority issue for the Department. In principle approval by majority of State Governments in a meeting of CABE, inspite of its being the highest policy making body cannot be considered adequate enough. Not only this, very valid reservations of some of the State Governments failed to receive the required attention. Ideally, further intensive deliberations were required with the States which the Department failed to undertake.

9.148 The Committee also observes that Central Universities/Deemed Universities/premier institutions which are to be brought under the proposed legislation have remained completely out of the consultation process. The Committee can very well understand the sheer absence of any suggestions/reservations of higher educational institutions in the private sector, inspite of their being a major stakeholder in such a path-breaking piece of legislation. The kind of response received from the Department to the specific query clearly confirms Committee’s apprehension that the Department attaches very little significance to their viewpoint.

9.149 At present, the National Assessment and Accreditation Council (NAAC) undertakes institutional accreditation for all higher educational institutions whereas the National Board of Accreditation undertakes programme accreditation for professional institutions. Ideally, these two bodies, with their experience and expertise, should have been actively involved in the formulation of the proposed legislation. However, in their case also, level of consultation remained confined to one or two meetings.

Interaction with Stakeholders

9.150 Committee’s intensive deliberations with NBA and NAAC, the only two existing agencies involved in the assessment and accreditation of various programmes and institutions across the country has revealed the crucial role being played by these agencies. The Committee, accordingly, is of the view that both these agencies not only should be fully involved in carrying out the objectives of the Bill but should also act as the guide, mentor and advisor for the large number of accreditation agencies proposed to be set up across the country. The Committee would appreciate if all conceivable guidance from NBA and NAAC is made available to each and every accreditation agency. In the formulation of rules/regulations also, these two agencies can contribute a lot. The Committee hopes that the Department would play a pro-active role in this regard.

9.151 The Committee takes note of very valuable suggestions made by the associations/experts representing private sector in higher education. The Committee is of the view that role of professional bodies, financial bodies and premier institutions in the accreditation process as highlighted by these associations is worth consideration and needs to be incorporated in the Act/rules regulations to be made thereunder. Similarly, all apprehensions about mandatory accreditation need to be addressed appropriately. The Committee also finds merit in the contention on accreditation process to start only after two batches had graduated from institutions

215 after being established. Registration of accreditation agencies only for two-three years initially is also a very practical and sound advice.

General Issues Separate Accreditation Procedure/Mechanism for Medical Institutions

9.152 The Committee observes that medical and health institutions are totally different from technical institutions, law colleges or other management colleges. Different tools and techniques are employed to assess and evaluate a medical institution. Therefore, chances of overlapping and conflict of interests are very much there if the provisions of the proposed Bill are not properly laid down. The Committee finds that currently, MCI is evaluating and assessing medical colleges and the Bill also proposes “laying down norms and policies for assessment of academic quality.” The word assessment could lead to conflict which requires rethinking. The Committee also takes note of reservation of the Ministry on inclusion of AIIMS, PGI and JIPMER under the ambit of the Bill. As rightly pointed out by it, they are the centres of excellence created by the Acts of Parliament and have been kept out of the purview of even MCI.

9.153 The Committee is of the view that the power to accredit a health educational institution may remain with the National Accreditation Regulatory Authority. However, the Committee is inclined to agree with the stand of the Ministry of Health and Family Welfare about the National Evaluation and Assessment Committee as envisaged under the National Commission for Human Resources in Health being empowered to specify standards, norms and process of evaluation and assessment of medical institutions and their programmes and also monitor the functioning of agencies recommended by NCHRH from among the agencies registered under NARA. The Committee, accordingly, recommends that specific provisions in the context of medical institutions need to be included in the Bill so as to take care of specialized nature of medical education and also avoid all aspects of overlapping and conflict of interests.

Status of Statutory regulatory bodies like UGC, AICTE, Council of Architecture, IGNOU, MCI, DCI, NCI etc. once this Bill is enacted.

9.154 The Committee would lke to point out that statutory bodies like UGC, AICTE, COA and MCI, DCI, INC dealing with specialized field of medical education have a separate role of setting the standards for approval and ensuring their adherence by the concerned institutions. Accreditation agencies will be concerned with the accreditation of duly recognized and approved institutions. Approval and accreditation are two distinct exercises and need to be handled by different entities. However, bodies like NBA, NAAC, Institute of Chartered Accountants/Institute of Cost and Work Accountants, ICHR, ICPR and ICSSR etc. can very well become accreditation agencies.

The Committee makes the following observations/recommendations on some of the provisions of the Bill.

9.155 Exclusion of agricultural education and research from the mandatory process of accreditation can be termed as discriminatory from the point of view of protection of student interests. The Committee fails to understand the justification for students opting for agricultural education being deprived of the benefits of mandatory accreditation as proposed for other streams of education. It is for the Government to find a way out. The Department should, therefore, take the initiative for coverage of agricultural education under mandatory accreditation by initiating the exercise of bringing in the legislation on agricultural education in accordance with the provisions of Article 249 of the Constitution.

Clause 4: Accreditation to be mandatory

9.156 The Committee observes that voluntary accreditation till now has proved to be very ineffective with less than one-fifth of colleges and less than one-third of all universities having obtained accreditation. Financial incentives by way of assistance for accreditation as introduced by UGC have failed to attract the institutions to come forward for accreditation. Shortage of faculty and lack of infrastructural facilities have also adversely impacted the accreditation process. With the rapid expansion of higher education sector, the situation is bound to deteriorate further. In such a scenario, the Committee strongly feels that the mandatory nature of accreditation can alone prove to be effective.

216 9.157 The only area of concern for the Committee has been the provision that requires an institution to obtain accreditation before it has even started the admission procedure. The Committee feels that this particular aspect of the provision would lead to impractical and unrealistic consequences. The Committee strongly feels that an institution cannot be assessed for its quality unless a few batches/sessions have been completed. Views of experts/bodies having the experience of accreditation exercise at the ground level in this regard cannot be ignored. The Committee would also like to point out that to start a fresh programme or an institution, the process of recognition/permission/affiliation needs to be made more stringent, so that higher educational institutions can show case their quality sustenance and enhancement initiatives more effectively during the process of accreditation. The Committee, therefore, recommends that the words "assessment for such accreditation shall be made before such institution starts the process of admission to such programme"be replaced by the words "assessment for such accreditation only after two batches of students have passed out".

9.158 The Committee further takes note of a situation where an institution which is being assessed for accreditation after two batches of students have passed out, is not able to get accreditation for justified reasons. For such cases, the Committee recommends that a viable mechanism be devised whereby such an institution is given another opportunity to get itself assessed again. This could be done by giving the institution a reasonable time period to overcome all its shortcomings so that the interests of the students are safeguarded.

Clause 7: Qualification for appointment as Chairperson or other member

9.159 The Committee is also of the view that the proposed apex body is inadequately represented in terms of number of members representing various streams, disciplines and State authorities. Considering the fact that Indian higher educational system is one of the largest and still expanding one with various institutions and disciplines, an expert body of five persons only is grossly inadequate. The Committee is also inclined to agree with the observation of NAAC that academics par excellence, with holistic understanding of the higher education system in India and abroad with insight and experience, with quality assurance and enhancement mechanisms as well as assessment and accreditation as members instead of subject specialists need to be represented in the Authority.

9.160 The Committee recommends that the National Accreditation Regulatory Authority has to be a bigger body so as to reflect all the stakeholders representing diverse fields and in consonance with the vast mandate entrusted to it. The Committee would like the Department to expand the strength of the Authority by having additional members as suggested above by different stakeholders. Composition of the Authority as given in clause 7 may be modified accordingly.

Clause 8: Selection Committee

9.161 The Committee is also of the view that the Cabinet Secretary who would be the Chairperson of the Selection Committee would essentially be the administrative functionary of the Government and he may or may not have the requisite academic eminence. Accordingly, the Committee recommends that this prestigious panel of experts should be headed by someone of academic eminence having great domain knowledge. The Committee finds it rather surprising that in spite of agricultural education remaining outside the purview of the Bill, an expert in the field of agricultural education and research is proposed to be a member of the Selection Committee. However, the Committee would have no objection to such an expert being made member of the Selection Committee in the event of agricultural education being brought under the purview of the Bill. The Committee also feels that it would have been appropriate if an expert in the field of social sciences/humanities/science/technology is also appointed as a member of the Selection Committee. Composition of the Selection Committee as enumerated in clause 8 may, accordingly, be modified.

Clause 21: Eligibility for registration as an accreditation agency

9.162 The Committee, feels that to the extent possible, totally private societies and trusts may be avoided in being appointed as accreditation agencies as many private educational institutions may become such agencies for self accreditation. The Committee, therefore, would like the Department to carry out appropriate modifications in the provisions of Act and also rules/regulations to be made thereunder.

217 Clause 22: Procedure for grant of certificate

9.163 Committee’s concern is that only genuine professional bodies should come forward to take the responsibility of accreditation agencies which would be in a position to perform the assigned duties to carry out the academic audit of the higher educational institutions as mandated in the proposed legislation. The Committee observes that these accreditation agencies are being brought into existence to improve not only the quality of higher education but also that of the institutions. The Committee would like the concept of quality being made applicable to every sphere of the higher education i.e. the faculty, infrastructure, management, besides course content, teacher student involvement etc.

Clause 23: Grant of certificate of registration

9.164 The Committee also feels that the time-frame for validity of certificate of registration to an accrediting agency should be fixed specifically as longer duration may defeat the very purpose of the objective of the Bill. Granting a certificate of registration to an accreditation agency for a period of ten years is not reasonable, even though it is understood that the authority would keep evaluating the performance on such terms and conditions as specified in the certificate of registration. The Committee recommends that initially the certificate may be granted for five years and thereafter it could be extended to ten years. The Committee, therefore, recommends that clause 23 (5) may be amended accordingly.

Clause 31: Application to Authority on accreditation by accreditation agency

9.165 The Committee finds the above provision to be vague as no details about the procedure for withdrawal/modifications of accreditation by the Authority on a complaint made by the aggrieved party have been given. Rule/Regulation making powers are also silent on this issue. The Committee is of the view that a well-defined grievance redressal mechanism needs to be in place so as to ensure complete transparency. Rich experience of NBA and NAAC can prove to be very relevant and of great help in this regard.

Clause 38: Penalty for obstructing or impersonating an officer of Authority

9.166 The Committee observes that penalty proposed under this clause is for offences which are too vague and general and are liable to be misused. No rules or regulations are envisaged to be formulated which can prescribe the mechanism for giving effect to this provision. Besides that, Committee’s attention has also been drawn by clause 44 where-under no court shall take cognizance of any offence punishable under this Act or the rules or regulations made thereunder, save on a complaint made by the Authority or any officer or person authorized by it. Thus, no avenue of clarifying his position seems to be available to the alleged offender. The Committee is also not aware whether any grievance redressal mechanism is proposed to be established under the Act or rules/regulations. Chances are there that there may be valid reasons for taking action as indicated in the clause on the part of the alleged offender. In such a scenario, principle of natural justice is required to be there. The Committee, accordingly, recommends that clause 38 may be suitably modified so as to give an opportunity to the affected party to clarify its position.

Clause 41: General provisions relating to offences and fine

9.167 The Committee fully supports the stringent penal provisions for violation of education laws that protect and promote the quality of education. However, at the same time, effective mechanism for judicious enforcement of such provision also needs to be put in place so as to prevent any act of arbitrariness. The Committee, accordingly, recommends that clause 41 may be suitably modified and procedure for enforcement of this provision is prescribed through rules/regulations/guidelines/directives.

Clause 43: Offences by society, trust and institutions

9.168 This Committee is in agreement with the objections raised on clause 43 (2) and recommends that Governors should be kept outside the purview of this provision.

218 Clause 45: Adjudication of penalty

9.169 The Committee observes that the Educational Tribunals Bill needs to be amended to incorporate the provisions relating to adjudication powers given to National and State Tribunals as mentioned in clauses 36 and 37. Necessary steps may, accordingly, be taken by the Department in this regard.

Clause 49: Power to exempt

9.170 The Committee would also like to point out that our premier institutions are also facing problem of shortage of qualified and experienced faculty as well as absence of required infrastructure and other facilities. To exempt such institutions from the proposed legislation will ultimately prove to be counter-productive only. Therefore, this clause may either be dropped or qualified by adding specific parameters/norms as to when the Central Government can use this discretion under rules/regulations to be framed under the proposed legislation.

(k) 239th on the Protection of Women Against Sexual Harassment at Workplace Bill, 2010 Introduction 9.171 The Committee while welcoming the proposed legislation, believes that the proposed legislation needs to be implemented with immediate effect so that the Vishaka guidelines can be translated into a strong legislation for protection, prevention and redressal of grievances of sexual harassment of women at workplace. The Committee also appreciates the initiative taken by the Ministry for drafting the proposed Bill as it is high time that such a law sees the light of the day. The Committee believes that women workforce should have the right to work with dignity in a safe and secure environment and prevention, protection and redressal of cases of sexual harassment is a must. 9.172 The Committee believes that with regard to cases of sexual harassment of men and women at workplace, survey/studies need to be conducted by the Ministry at regular interval. This will not only allay the apprehensions of the proposed legislation being biased against men but would also facilitate any remedial steps, if so required. The Committee, keeping in mind the interests of all concerned, feels that the viability of having a provision of enabling nature where circumstances of sexual harassment cases of men at workplace can be tackled may be explored. Alternatively, an employer/establishment can be mandated to report cases/instances of male sexual harassment also in their Annual Report. This may help to understand the real picture of sexual harassment of both men and women. Issue of inclusion of domestic workers within the ambit of the Bill 9.173 Domestic workers comprise about 30 per cent of female workforce in the unorganized sector. This section is most vulnerable to sexual harassment. Attention of the Committee has also been drawn to the fact that the Government of India had voted in favour of ILO Convention 189 for Decent Work for Domestic Workers, thereby endorsing home as a workplace. The Committee is not convinced by the Ministry's contention about practical difficulties envisaged in the absence of any code of conduct laid down within the household.

9.174 The Committee is in full agreement for inclusion of domestic workers within the ambit of the proposed Bill. Expecting such a vulnerable group to take recourse to IPC in a sexual harassment case cannot be considered viable. The Committee believes that privacy of a household cannot be an excuse to shield uncalled for acts against this category of women workforce. The Committee is of the view that innovative thinking is required for making the inclusion of domestic workers possible. Also, the experience gained in the implementation of the Protection of Women from Domestic Violence Act, 2005 can be utilized in the cases of sexual harassment. Redressing cases of sexual harassment of domestic workers within the confines of a home could be worked out. The Committee would like to emphasize here on the involvement of and pro-active role to be played by the NGOs, Police Stations, RWAs and Panchayats in helping the aggrieved domestic worker to get justice through this legislation. The Committee would like to impress upon the fact that even domestic workers who are women have equal rights like the other working women to have a safe and secure workplace and right to work with dignity. The Committee, accordingly, is of the view that necessary changes in the Bill especially with respect to the definitions of employee, employer and workplace are required so as to ensure that the domestic workers are brought within the ambit of this Bill thereby upholding their right to work with dignity.

219 Training of members of Complaints Committees 9.175 The Committee observes that mere setting up of Complaints Committees will not serve the purpose. In view of the experience gained so far as the effectiveness of the institutional mechanism set up under the Supreme Court guidelines given in 1997 is concerned, the Committee strongly feels that viability of the two Complaints Committees envisaged to be set up under the proposed legislation needs to be ensured from the very beginning. During the interactions with women organizations, this fact was emphasized again and again that members of Complaints Committees wherever established were not sensitized enough and showed a general lack of awareness about their duties and role. The Committee would appreciate if awareness camps are conducted with the support of State Legal Aid Forum, trade unions etc. Besides that, officers of workplaces including the employers will also have to be made aware about their role as envisaged under the legislation. Here again, the Ministry in co-ordination with National and State Commissions for Women can play a pro- active role with the support, guidance and experience gained by members of existing institutional mechanisms set up under the Supreme Court guidelines.

Role of National and State Commissions for Women 9.176 The Committee is of the opinion that the National and State Women Commissions could be assigned a statutory oversight role. This could be easily made possible with involvement/engagement of NGOs/bodies like Employer Associations, Trade unions etc. on a continuous basis. The Committee feels that this would gradually lead to every workplace putting certain monitoring and evaluation mechanisms in place and giving these processes sufficient publicity to ensure that rights of working women guaranteed under the Act are upheld. The Committee also takes note of the assurance given by the Secretary for making a provision in the rules which would enable the National/State Commissions for Women to receive complaints and forward the same to the concerned Committee and also to ask for details of the outcome of inquiry/action recommended. The Committee is of the firm view that both the Commissions need to be given a specific role which should be specified in the Act itself. Leaving it to the rule-framing stage is simply a manner of diluting the real objective of a justified suggestion. The Committee will be making its recommendation in this regard in the relevant clauses. Clause 1: Short Title, Extent and Commencement 9.177 The Committee is of the firm view that the preventive aspect reflected in the proposed Bill has to be strictly in line with the Vishaka guidelines. The Committee would also like to point out that no specific penalty has been provided for violation of duties relating to preventive aspect assigned to the employer. Not only this, rule-making provision is also silent on this aspect. The Committee, therefore, suggests that the preventive aspect in the Bill, as mandated in the Supreme Court guidelines has to be reflected in the Bill by incorporating the same in the relevant provisions. Accordingly, the title of the Bill should also be modified to read as 'the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Bill '.

Clause 2: Definitions Clause 2 of the Bill deals with definitions. 9.178 Attention of the Committee was drawn by many organizations to the fact that it was not clear whether the definition of ‘aggrieved woman’ included student, research scholar, patient, physically and mentally challenged women etc. The Ministry submitted that the proposed Bill covered cases of sexual harassment at the workplace, including third party harassment. The Committee is of the view that the clarifications given by the Ministry would alley the apprehensions of the stakeholders in the light of the inclusive definition of ‘aggrieved woman’. 9.179 Agreeing with the contention of the Ministry, the Committee observes that contingencies like physical or mental incapacity or death are already covered under clause 9 which authorizes the legal heir or any other person so authorized to file a complaint. The Committee would also like to point out that instances may occur when legal heir or person so authorized may not come forward or the aggrieved woman herself is not willing to file a complaint. The Committee feels that in such circumstances, where sexual harassment of a very serious nature has occurred, the Complaints Committee may be authorized to take suo moto cognizance of such happening and initiate inquiry.

220 9.180 Committee's attention was drawn to the concept of victimization which was very well-known in labour law and many of the labour statutes included this concept. In the event of an employee raising a dispute about any issue, there may be a tendency of employers to either dismiss that person on some ground or another. Accordingly, a guarantee against victimization was essential in the legislation itself. The definition of 'aggrieved woman' should, therefore, include not only a sexually harassed woman but also a woman who has been victimized. The Committee understands the precarious situation in which an aggrieved woman may find herself. In no case, victim or even a witness should be victimized or discriminated against. To prevent such situations which may arise even before filing of a formal complaint, the concept of victimization needs to be included in the definition of 'aggrieved woman'. The Committee, accordingly, recommends the modification of the definition of the term 'aggrieved woman' as indicated above.

9.181 The Committee fully supports the inclusion of domestic workers within this Bill and recommends to the Ministry to delete the words "but does not include domestic workers working at the home" from the definition of the term 'employee'. To facilitate such inclusion, necessary changes need to be made in the definition of 'employee'. Since the nature of work of domestic workers is different as it is within the confines of a dwelling place, a separate definition of 'domestic worker' can be added under clause 2. The Committee, while going through the draft prepared by NCW for domestic workers i.e Domestic Workers Welfare and Social Security Bill, 2010 found the definition of 'domestic worker' quite appropriate. The Committee is of the view that the above definition of 'domestic worker' may be included under the definition clause with a slight modification by replacing the work 'person' with the word 'woman'.

9.182 The Committee is not fully convinced by the justification given by the Ministry for coverage of contract employees working at different workplaces who normally would be under the control of another employer. It is a well-established fact that daily wage workers, that too women workers are the most vulnerable segment of unorganized workforce. To expect that employer of such a casual worker who may be a contractor and not directly responsible would take a suo moto action of filing a case under IPC is far away from the ground realities. The Committee is of the view that the definition of 'employee' can be made more explicit by adding the words 'for any third party encountered in the course of work' at the end of the definition of the term 'employee' so as to ensure coverage of all categories of women employees.

9.183 The Committee understands the justification of the Ministry but in order to make things more clear, an explanatory clause about contractors should be included especially in view of the fact that action has to be taken by the contractor against the perpetrator. The Committee finds that ambiguity is also there about the action to be taken against contractor in the event of his being the perpetrator or contract labour woman being the victim of the principal employer. It is not clear whether they can approach the ICC set up by the principal employer or action has to be taken by contractor. 9.184 The Committee would like to point out that with the inclusion of domestic worker under the Bill, definition of 'employer' will need to be expanded by adding house owners under it. The Committee, accordingly, recommends that the definition of 'employer' may, accordingly, be modified. 9.185 The Committee believes that the present definition of 'sexual harassment' would suffice and serve its purpose as it is based on the definition given by the Supreme Court. However, keeping in view various developments in technology and harassment through these mediums, the following words as given in the definition of 'sexual harassment' in the NCW draft Bill, 2010 can be added at the end of Sub-clause (v):— "whether verbal, textual, physical, graphic or electronic or by any other actions". Sexual harassment will thus include any other unwelcome physical, verbal or non-verbal conduct of sexual nature whether verbal, textual, physical, graphic or electronic or by any other actions.

9.186 The Committee observes that definition of the term 'workplace' covers all categories of workplaces falling under Government and private sector and also includes any place visited by air/land/sea/rail. On being asked about the viability of including an incident of sexual harassment occurring at a place visited by an employee, the Committee has been informed that women employees may face harassment not only within the physical boundaries of the workplace but even outside it, which may be during or in course of her employment.

221 This may include harassment from a co-worker or from an employee of the workplace visited by her in course of her employment or by a third party at such place. While agreeing with the clarification given by the Ministry, the Committee would like to point out that a very crucial area which strictly speaking cannot be considered a workplace has remained out of the ambit of the Bill thereby leaving the aggrieved woman in situations which may cause harm to her. Very frequent incidents of women employees being sexually harassed during their journey from home to workplace and vice-versa are being reported. The Committee, therefore, feels that vehicles being provided by the employer should also be covered under the definition of 'workplace'. Accordingly, the words 'any vehicle provided by the employer' may be added at the end in sub-clause (iv).

9.187 The Committee would also like to point out since it has recommended for inclusion of domestic workers within the ambit of the Bill, a house or dwelling place should be added in the definition of workplace. This may be included in the definition of a workplace as given in the NCW draft of 2006 which reads as follows:— "includes any place where an aggrieved woman or defendant or both is/are employed or works, or visit in connection with work during the course of or arising out of employment."

Clause 3 : Prevention of Sexual Harassment 9.188 The Committee is of the view that clauses 3 and 3A (relating to victimization) would take care of all eventualities which a victim of sexual harassment may face and provide necessary safeguard to her. Not only this, express provision of sexual harassment being considered a misconduct would enable the employer to take action as recommended under the service rules. Another positive outcome of such an elaborate provision would be that it would act as an effective safeguard to the witnesses and all those involved in the inquiry proceedings from any victimization.

9.189 The Committee would also like to emphasize that what constitutes misconduct in the context of sexual harassment and what penalties it would attract should be provided in service rules so far as Government and Public Sector bodies are concerned. With regard to private employers, steps should be taken to include the aforesaid prohibitions in the standing orders under the Industrial Employment (Standing Orders) Act, 1946. The Committee would appreciate if the Ministry takes a pro-active role in the matter and make an assessment about the service rules applicable to all categories of employees and ensure that misconduct relating to sexual harassment is incorporated therein.

9.190 Another point highlighted by the stakeholders was the questioning or challenging the moral character of the complainant after a complaint of sexual harassment has been filed. In such a case, the respondent needed to be punished. The Committee would like to point out that this was a well accepted legal principle that in cases of sexual abuse, character of the woman would not be taken into account and if discussed would not have any impact on the decisions taken. In view of this, the issue of challenging a complainant's moral character would not arise.

9.191 The Committee believes that a specific definition of a 'hostile work environment' as suggested need to be included because the intention is only to protect the woman or victim from any additional suffering apart from being sexually harassed. Sensitivity to the plight of a victim is essential as it would be very difficult for her to continue working if her work environment becomes hostile, offensive or intimidating in any way. Clause 4: Constitution of Internal Complaints Committee

9.192 The Committee would like to emphasize on the fact that a victim of sexual harassment needs support and assistance in filing a complaint and going through the inquiry process for the redressal of her complaint. A mechanism already in place would definitely help her to seek justice at the earliest. The Committee agrees with the Ministry that for timely and easy access to victims, these Complainsts Committees should be permanent so as to avoid any delay due to procedural requirements of formally constituting such Committees every time a complaint is received. The Committee believes that this provision should be in the Act itself specifying the circumstances where companies can be exempted from such a provision. The Committee would like draw attention to the following proviso to the clause relating to constitution of ICC in the NCW Bill, 2010:—

222 "provided that where the offices or administrative units of the workplace are located at different places, the Committee shall as far as practicable be constituted at all administrative units of offices." However, this provision needs to be made more specific in the context of practicality and viability of constituting a ICC in every workplace. The Committee is in agreement with the suggestion for having viable and workable institutional mechanism for handling sexual harassment cases occurring in small administrative units of company scattered over different areas. The Committee is happy to note the alternative mechanism suggested by the Ministry. The Committee would, however, like to point out that the such a provision should be incorporated in the Bill itself so as to ensure removal of any ambiguity.

9.193 Clause 4(2) deals with the composition of the ICC which provides for four members. This has been pointed out by some stakeholders to be problematic in the event that the bench is evenly divided over a case. The Committee is in agreement with this and recommends to the Ministry for increasing the number of members to at least five or an odd number so that there is no deadlock over a case and taking of decisions is facilitated.

9.194 The Committee is of the considered view that in case senior level woman employee is not available, it would not be a viable option to always approach the District Officer of the LCC for nominating such a member as the Presiding Officer. The Committee, instead, believes that it would be better or more workable to have a senior woman officer from sister organization or other Departments or other Banks or other organisations. In this way, the employer would have more flexibility rather than simply approaching the LCC and waiting for the District Officer to nominate the Presiding Officer.

9.195 The Committee would like to reiterate the pro-active role to be played by NGOs in the implementation of the legislation. The Committee finds no flaw in having a member from the NGOs in the ICC. It is, in fact, in consonance with the direction of the Supreme Court in Vishaka Case. The Supreme Court suggested the inclusion of a third party-either NGO or other body familiar with the issue of sexual harassment for preventing any pressure from senior level. Accordingly, a member of NGO would be a welcome inclusion in the ICC for it to function in an objective manner.

9.196 The Committee foresees operational difficulties in the functioning of ICC in case of non-availability of NGO member. The Committee is of the view that viability of this mandatory condition of member of NGO to be nominated as a member of ICC may be looked into. Supreme Court guidelines of having a member of either an NGO or other body familiar with the issue of sexual harassment can be a viable option.

9.197 The Committee observes that every organization whether in the private or Government Sector has an association representing its employees. Similarly, educational institutions have teacher and student bodies. Not only this, every organization has a designated officer for taking care of welfare related activities of its employees. The Committee recommends to the Ministry for exploring the possibility of including representatives from trade union/employee association/student union/welfare officers. Besides that, the eligibility criteria for selection of member from NGOs or association should also be specified along with work experience in conducting inquiry and dispensing justice in the Rules to be framed under the proposed legislation. Clause 6 : Constitution and jurisdiction of Local Complaints Committee 9.198 Committee finds the problem areas highlighted in the setting up of LCCs to be quite genuine. The feasibility of having such a LCC in every block/taluka/tehsil in rural and tribal area and ward/municipality in urban area needs to be looked into, especially in the case of big districts. The Committee believes that practical aspects like setting up an office for such LCC also require careful examination. The Committee is of the view that a beginning can perhaps be made by having district level committees on a permanent basis. So far as setting up of such Committees at block, taluka or tehsil in rural or tribal area and ward or municipality in urban area is concerned, in case of non-feasibility of an ICC at a workplace having less than ten employees, the Committee is of the view that District level LCCs can handle such cases. To make their task easier, a local member from the taluka/ward etc. may be co-opted as a member wherever any incident of sexual harassment case had occurred.

223 9.199 The Committee understands the predicament of local level Committee in providing redressal to victims against highly placed officials of a Government or private company. The Committee would like to point out that categorical non-acceptance by the Ministry would not solve the problem. An alternate mechanism has to be identified. The Committee is of the view that State Commissions for Women need to be involved in handling of cases against employers. A workable mechanism which can be the district level LCC with representative from the State Commission for Women can be the best option.

Clause 7: Composition, tenure and other terms and conditions of Local Complaints Committee 9.200 The Committee is convinced by the justification of the Ministry because utmost sensitivity and care should be shown towards a victim of sexual harassment by the members of Local Complaints Committee. The Committee would also like to draw attention to the criteria laid down by the Supreme Court for members of the Complaints Committees which stipulate that such Committees should be headed by a woman and not less than half of its members should be women. To prevent the possibility of any undue pressure or influence from senior levels, a third party which could be either an NGO or other body familiar with the issue of sexual harassment. The Committee observes that broadly speaking, the composition of LCC is envisaged as per the Supreme Court guidelines. The Committee also takes note of the assurance given by the Ministry that qualifications of members of LCC would be elaborated in the Rules.

9.201 The Committee, therefore, would like the Ministry to include a provision for giving representation to women from Scheduled Castes, Scheduled Tribes, OBCs and Minorities in the Local Complaints Committee, depending upon local conditions for fair dispensation of justice from a body which represented all sections of the society.

9.202 The Committee would, however, like to draw attention to a very important suggestion given by some stakeholders regarding the inclusion of a representative of trade union/employees association as a member of the Committee which would be in the interest of the employees. It was asserted that composition of LCC should embrace both a women rights perspective as well as a workers' rights perspective. The Committee supports the inclusion of representative of trade union or employee association and recommends to the Ministry to incorporate this category of members in the LCC in order to have a broad-based membership protecting the interests of the victim as a woman as well as an employee. The Committee recommends that the following addition may be made in clause 7:— "one member to be nominated from amongst the registered trade unions or workers associations functioning in that block or district"

9.203 The Committee would like the Ministry to review the viability of having Protection Officer as a member of LCC. Protection Officers already have a well-defined mandate under the DV Act, 2005. The Committee also has been given to understand that there is also a proposal to appoint them as Dowry Prohibition Officer. Additional responsibility for these officers under the proposed legislation would not be advisable for its effective implementation. The Committee, therefore, is of the view that in addition to the specific nomination of Protection Officer, an alternative proposition will also have to be categorically mentioned in the composition clause. Suggestion of the Ministry to provide for alternative provision in the Rules cannot be considered viable from any point of view and is therefore, not acceptable. The Committee takes note of the alternative to Protection Officers, as given in the NCW Draft Bill, 2010, i.e. 'any other officer such as inspectors or additional inspectors under the Shops and Establishments Acts of the respective States, additional Inspectors under the Factories Act, 1948 or any other public servant at the district level appointed under any law for the time being in force'. The Committee considers the option given in the draft NCW Bill, 2010 viable and more conducive for the functioning of LCC. The Committee, accordingly, recommends incorporation of the same in clause 7(1)(d). Clause 9: Complaint of sexual harassment 9.204 The Committee agrees with the contention of the stakeholders regarding having a time limit for filing a complaint of sexual harassment. At the same time, the Committee also understands the intention of the Ministry for recognizing the fact that the aggrieved woman may take considerable time to muster enough courage to come forward and file a complaint. However, clarification of the Ministry for not having any time- 224 limit for filing of complaint is not very convincing. The Committee believes that without any time limit, this would become an endless process and may not lead to a logical conclusion. In the final interaction with the Committee, the Secretary, agreed that having an open-ended provision without specifying any time limit for filing a complaint of sexual harassment would not be desirable as it would not be possible for a Complaints Committee to conduct an inquiry in a justifiable manner. The Committee, accordingly, recommends to the Ministry to work out a reasonable time limit which is neither too short so as to deny justice to the aggrieved woman who would be needing considerable courage and will-power to file a complaint nor too long so as to dilute the real objective. 9.205 The Committee takes note of the fact that in the draft NCW Bill, 2010, aggrieved woman has the option to approach the State Women Commission when the complaint is against the employer. The Committee feels that such an option seems to be justified and needs to be included as it would make the aggrieved woman more comfortable and secure. With the kind of experience and expertise available with any State Women Commission, it can be considered the most appropriate alternate forum for filing of a complaint by the aggrieved woman, especially in case when the complaint is against the employer himself. The Committee, accordingly, recommends that the following proviso may be added to clause 9(1). "Provided further that an aggrieved woman may file a complaint to the Commission where the complaint is against the employer". Clause 10: Conciliation 9.206 The Committee finds that there are two issues in this clause i.e. apprehensions regarding undue pressure on aggrieved woman for conciliation and monetary settlement likely to be subject to misuse and also outraging the sensibilities of the aggrieved woman. The Committee would like to point out that safeguards against imposing undue pressure on the victim can be seen in this very clause itself as the conciliation would only be initiated at the instance of the victim herself. Also, proviso to clause 11(1) entitles the victim to approach ICC/LCC in the event of any term or condition of the settlement not being complied with. Secondly, the Committee does not find the mention of any ‘monetary settlement in the Bill. Even the clarification given by the Ministry makes a mention of tendering of apology or admission of guilt by the perpetrator. The Committee strongly recommends that there should not be any ‘monetary settlement’ for it would trivialize a grave act of sexual harassment. 9.207 Attention of the Committee has also been drawn to the fact that if an aggrieved women opts for conciliation, the accused would be let off simply by tendering his apology or admission of guilt. The Committee suggests that a distinction should be made between a minor offence and a major one. Tendering apology or admission of guilt would be fine in the case of a minor offence but the same should not be applicable to major offences. This can encourage the accused indirectly and he can indulge in similar undesirable activities in future. Punishment should be the only way of rendering justice to the aggrieved woman in such cases. The Committee, accordingly, recommends to the Ministry for making provision of conditional conciliation for minor offences relating to sexual harassment. For other major offences, stern punishment should be the only way out without any scope for the conciliation. Clause 11: Inquiry into Complaint 9.208 The Committee is of the view that very pertinent aspects relating to conduct of inquiry have been left out to be included in the Rules which leaves a lot of scope for ambiguity and mis-interpretation. The Committee would like to draw attention to the following provision included in NCW Draft Bill, 2010:— “where conciliation under sub-section (1) of section 10 is not arrived at, the Committee or the Local Committee as the case may be, shall, subject to the provisions of section 15, proceed to make enquiry into the complaint in accordance with its service and conduct rules/standing orders/ policies and where no such rules exist then in such a manner as may be prescribed”. This provision in a way makes it clear that the inquiry has to be made in accordance with service and conduct rules, standing orders or policies. The Committee, therefore, recommends that clause 11(1) may be modified accordingly. 9.209 Clause 11 (3) provides that the inquiry under sub-section (1) should be completed within a period of ninety days. The Committee would like to point out that in the event of inquiry not being completed within the stipulated period i.e. ninety days, no liability has been fixed on the employer. The Committee suggests that

225 either a similar clause as in the NCW Draft Bill, 2010 be included in the present Bill or a liability be fixed on the employer which can be included under clause 25 dealing with penalty.

Clause 12: Action during pendency of inquiry 9.210 The Committee is convinced by the justification given by the Ministry. The Committee feels that the focus should be more on the victim who goes through a lot of mental trauma and these interim reliefs were meant to make her comfortable during the inquiry process. The Committee would also like to emphasize that provision should also be made for safety and security of not only the victim but also the witnesses including prevention of their victimization during and after the inquiry proceedings. The victim/witnesses should not be suspended, given memos, inquiry conducted against them for acts which would be considered as harassment as a fallout of the complaint. The Committee, accordingly, recommends the Ministry to make necessary provisions in this regard so that the victim and the witnesses are protected from all sorts of pressure and hostility. 9.211 The Ministry explained that the number of days of leave to be granted may vary from case to case and could be decided by the members of the Committee. The Committee, however, is of the view that a specification of leave period needs to be included in the interest of the aggrieved woman. Further, the Committee finds some merit in the argument for the deletion of the words ‘if the cases is proved’ as it would not always be easy for an aggrieved woman to prove a case of sexual harassment which would not have any witnesses. The Committee recommends to the Ministry to delete the words as suggested above. Clause 13: Inquiry Report 9.212 Under clause 11 (3), process of inquiry has to be completed with ninety days and the employer or the District Officer has to act upon the recommendation within sixty days of Inquiry Report being received. Not only this, failure to do so will invite penal action under clause 25. The Committee would like to point out that chances of such an instance happening would be very little, keeping in view the composition of these Committees and their mandate. The Committee observes that as indicated in clause 20, the District Officer shall be duly-bound to monitor the timely submission of reports furnished by the Internal Committee or the Local Committee. The Committee is of the view that this duty should be cast on the employer also so far as Internal Committee is concerned. The Committee, accordingly, recommends that this duty should also be included in clause 19 relating to the duties of employer.

9.213 It was also impressed upon the Committee that specific guidelines relating to the manner in which an inquiry should be conducted and the procedure for recording of evidence needed to be laid out which may include but not limited to: ¾ Participation of the complainant ¾ Manner of examination of the witnesses ¾ Nature of questions that are not to be allowed ¾ Non-permissibility of evidence/examination based on aggrieved woman's character, personal/sexual life and history, etc. The Committee is of the view that the procedural details for conducting the inquiry need to be enumerated and, accordingly, recommends that the same may be specified in the Rules to be framed under clause 28.

9.214 The Committee would like to point out that the employer is bound by the recommendation of the Committee as specified in clause 25 (1) (b) whereunder on the employer failing to comply with any recommendation made under clause 13, he is liable to be penalized. Further, the terms of settlement arrived at during conciliation under clause 10 are required to be recorded and forwarded by the ICC/LCC as its recommendation. By virtue of this, the settlement terms would take the character of a recommendation under clause 13. The Committee is of the view that with these provisions, the employer is duly-bound to ensure every single complaint of sexual harassment reaching the Complaints Committee being handled and disposed of and recommendation of Inquiry Report acted upon. Chances of his acting otherwise would be very rare. 9.215 The Committee is of the view that first of all, sexual harassment should be clearly laid down as an offence in the service rules of all Government employees and in the contracts of all employees in the private sector. This is in consonance with the directive of the Supreme Court that Rules/Regulations of

226 Government/Public Sector Bodies relating to conduct and discipline should include rules/regulations prohibiting sexual harassment and provide for appropriate penalties in such rules against the offender. For the private employers, steps should be taken to include the aforesaid prohibition in the Standing Orders under the Industrial Employment (Standing Orders) Act, 1946. Secondly, to bring clarity in the phase ‘as may be prescribed’, the Rules should clearly state the kind of penal action such an offence would attract. Laying down specific penalties for sexual harassment would certainly clear the air. As for the prescribed procedure to be followed by the employer after the Complaints Committee gives its report, the Committee notes that same is to be provided in the Rules to be framed under clause 28.

9.216 The Committee agrees with the suggestion for use of the term 'damages' in place of 'compensation' as ‘damages’ for any amount of compensation cannot ever compensate for mental and physical trauma a victim of sexual harassment goes through. Further, the word ‘damages’ is much more dignified and appropriate compared to the word 'compensation'. The Committee, accordingly, recommends modification in sub-clause (3) (ii).

9.217 A very important and pertinent issue which had been raised by many stakeholders relates to the rights of the accused. As mentioned earlier, the Bill is silent on this aspect. It was suggested that the accused should not be denied free and fair trial. The Committee is of the firm view that every accused person needs to have a free and fair trial as this is the very basis of the principle of natural justice. The Committee observes that clause 3 (i) simply mentions that copy of the inquiry report is to be made available to the concerned parties. The Committee believes that there should be a proper procedure for giving a chance to the accused and also to the aggrieved woman, if not satisfied to place their side of the story before the Complaints Committee. Not just this, before forwarding its recommendations, the Complaints Committee should give a final chance to the accused to convey his position. The Committee, therefore, recommends to the Ministry to include an appropriate provision in the Bill or specify in the Rules to ensure a fair and free inquiry proceedings from the point of view of the accused.

Clause 14: Punishment for false or malicious complaint and false evidence

9.218 The Committee understands the complex position of an aggrieved woman who has to muster great courage to come forward to file a complaint of sexual harassment. Also, given the unequal nature of relations with the employer, it would not be easy for the aggrieved woman to prove her case. The Committee realizes that acts of sexual harassment take place behind closed doors and it is a tough task to prove the authencity of a complaint. Also, such instances occur where witnesses are not readily available. If at all a witness gathers courage to come forward, such a provision may act as a deterrent. The Supreme Court in Vishaka Guidelines had stated clearly that it had to be ensured that victims or witnesses are not victimized or discriminated against while dealing with complaints of sexual harassment. The Committee believes that a distinction needs to be made between false and malicious complaints. For any false complaint, no punishment may be prescribed. However, if it is proved that a complaint has been filed with malicious intent, only then action against the aggrieved woman may be considered as it affects the character and credibility of the accused. The punishment for filing complaints with malicious intent should be provided in the Rules.

9.219 The Committee understands the apprehensions of some stakeholders regarding the misuse of the proposed legislation and takes note of their suggestion to change the word ‘may recommend’ to ‘shall recommend’ so as to make it mandatory for the Complaint Committee to take action against complainants filing false and malicious complaints. The Committee would like to point out that the focus of the proposed legislation is to provide redressal to aggrieved woman who may have faced sexual harassment and not on the misuse of the law by some. The Committee takes note of the fact that any provision should not be there which may deter an already aggrieved woman to file a genuine case of sexual harassment. The Committee observes that malicious intent or falsehood on the part of the complainant will have to be established after an inquiry to be conducted in accordance with the prescribed procedure. Such a provision will ensure that this provision will be resorted to only in genuine cases and disposed of after a proper inquiry.

227 Clause 15: Determination of Compensation

9.220 The Committee agrees with the intent of the Ministry for determining compensation based on several factors relating to various forms of suffering and loss of the aggrieved women. It also takes into consideration the suggestions of the stakeholders and is of the view that the elaborate procedure for realization of compensation and recovery needs to be spelt out so that the aggrieved woman is given compensation as determined by ICC or LCC. The Committee would like to reiterate the stance of the Ministry that compensation does not go against the spirit of the Bill and is not intended to be an alternative to punishment for an act of sexual harassment.

Clause 16: Prohibition of publication or making known contents of complaint and inquiry proceedings and Clause 17 Penalty for publication or making known contents and inquiry proceedings. 9.221 The Committee would like to emphasize upon the sensitivity of a case of sexual harassment and the essentiality of maintaining confidentiality of the complainant so that she does not regret filing a complaint of sexual harassment. The justification given by the Ministry seems to be very convincing. The Committee would like to point out that justice secured by any victim can be accessed as it is a matter of public interest. Only the identity of the victim is not to be disclosed. There is no question of highlighting only genuine cases and hiding the false ones as under clause 22 the employer is required to include the information regarding cases filed and their disposal in the Annual Report of the organization. The Committee agrees with the stand of Ministry that in no way the RTI Act is being subverted. Notwithstanding the provisions of section 22 of the RTI Act, a legislation enacted subsequently can be outside its purview in case specific exception to this effect has been made in that subsequent law. In fact, clause 16 is in conformity with section 8 (j) of the RTI Act and there is no inconsistency between the two.

9.222 As for clause 17, the Committee is of the view that it should be read with clause 16. It is meant to safeguard the aggrieved woman against any mischievous intention/deliberate act so as to put her in awkward position by disclosing the details of case filed by her. Hence, the Committee finds no problem in clauses 16 and 17 as the intention of provisions is to protect the aggrieved woman from further harassment of any kind or public ridicule. Clause 18 : Appeal 9.223 The Committee while appreciating the concerns about likelihood of aggrieved woman as well as witnesses being made to face further harassment and uncalled for exposure in case of appeal being made in the Court or Tribunal would like to point out that principle of natural justice has to be adhered to in every case. Sexual harassment cases cannot be made an exception. The Committee would like to point out that with required steps and extra precaution taken by making the conduct of appeal proceedings in camera, chances of victims/witnesses facing undue harassment will not be there. It would also be better if onus of proving the case should be on the employer. 9.224 So far as Supreme Court directives in Dr. Medha Kotwal case is concerned, the Committee observes that the proposed legislation envisages no further inquiry after the Report of the Complaints Committee has been given which would be mandatorily implemented by the employer. However, the right to appeal both to the aggrieved woman and the respondent stays in consonance with principles of natural justice.

Clause 19: Duties of Employer 9.225 The Committee finds that a similar set of duties of the employers are included in the Vishaka Guidelines. The Committee, however, observes that duties covering preventive action on the part of employer as substantiated in these guidelines have not found a place in clause 19. The Committee would like to draw attention of the Ministry of the following duties mentioned in Supreme Court guidelines. (a) Express prohibition of sexual harassment at the workplace should be notified, published and circulated in appropriate ways.

228 (b) The Rules/Regulations of Government and Public Sector bodies relating to conduct and discipline should include rules/regulations prohibiting sexual harassment and provide for appropriate penalties in such rules against the offender. (c) As regards private employers, steps should be taken to include the aforesaid prohibitions in the standing orders under the Industrial Employment (Standing Orders) Act, 1946. (d) Appropriate work conditions should be provided in respect of work, leisure, health and hygiene to further ensure that there is no hostile environment towards women at workplace and no employee woman should have reasonable grounds to believe that she is disadvantaged in connection with her employment. The Committee is of the view that the duties of employers as mentioned above should be incorporated in this provision along with the existing ones.

Clause 20: Duties and power of District Officer 9.226 The Committee observes that on a comparative analysis of this provision with clause 22 relating to Duties of District Officer as given in the NCW Draft Bill, 2010, role of District Officer as envisaged under the proposed law seems to be somewhat diluted. This is further borne out by the fact that a number of duties of employer as indicated in clause 19 are not considered appropriate enough to be assigned to the Distinct Officer. The Committee strongly feels that this would be a serious anomaly, resulting in non-delivery of justice to aggrieved woman. The Committee would like to point out that the District Officer is mandated to set up a Local Complaints Committee in every district and sub-district wherever required which will be assigned the role of conducting an inquiry against the employer himself. In such a scenario, absence of such duties like providing necessary facilities to LCC for dealing with the complaint and conducting inquiry, assisting in securing these attendances of respondents and witnesses before the Complaints Committee and making available the required information to it cannot be considered acceptable. The Committee, accordingly, recommends that duties assigned to the District Officer should be on the same pattern as envisaged for the employer to the extent possible. Clause 23: Appropriate Government to monitor implementation and maintain data 9.227 The Committee suggests that the responsibility of monitoring the implementation of various provisions needs to be given to the National or State Commissions for Women who would be better equipped for handling such a task in view of their experience and expertise of working for the cause of women. The Committee, accordingly, recommends that the provision relating to Monitoring of the Act stipulated in the draft NCW Bill, 2010 may be included in the proposed law in place of clause 23.

Clause 24: Power to call for information and inspection of records 9.228 The Committee, while appreciating the spirit behind this provision as a part of an effective monitoring mechanism envisaged to be put in place in the proposed law has a word of caution. The Committee finds that Report on the cases of sexual harassment handled by an establishment will be submitted to the State Government annually and the appropriate Government is also mandated to monitor the implementation of the Act and maintain data on the number of cases filed and properly disposed of. Provision in clause 24 authorizing any by officer to inspect an establishment in public interest or in the interest of women employees on the part of the appropriate Government seems to be somewhat unjustified. The Committee is of the view that such a power may be given only in case of an extreme case of sexual harassment taking place and not being handled properly by the concerned authorities and a specific Complaint/Report being made by the complainant/Complaints Committee/State Commission for Women.

Clause 25: Penalty for non-compliance with provisions of Act 9.229 The Committee agrees that strong deterrent should be provided in the Bill itself so that a safe and secure workplace is ensured by an employer and the accused should be brought to book at any cost. However, in doing so, the impact of punishing the employer for not complying with the provisions of the Act should not adversely affect the other employees or dependents of an organization. Cancellation of license or withdrawal of non-renewal or cancellation of registration by the Government or local authority would harm the interests of 229 many persons associated with a particular organization because it is a matter of means of livelihood for many. Also adequate opportunity should be given to the employer to present his case before any such action is taken against him if the clause is proposed to be retained.

(l) 240th Report on the Protection of Children from Sexual Offences Bill, 2011

Introduction

9.230 The Committee, while taking note of the fact that there is no law to deal comprehensively with sexual offences against children and in a way of discharging an obligation to the United Nations Convention on the Rights of Children which India has ratified, welcomes the initiative of the Ministry in drafting a special law to deal with such offences against children proposing to evolve child-friendly procedures for investigation and handling of child-abuse cases. In addition to providing for effective mechanism for handling child-related sexual offences through the proposed legislation, there is an urgent need for initiating some preventive measures so as to ensure that chances of sexual exploitation of children remain minimum. Along with preventive and protective safeguards, aspect of relief and rehabilitation of these most vulnerable victims will also have to be looked into.

Important Issues/Concerns Raised

Rehabilitation, Compensation, Counseling and Support Services for the Victims

9.231 The Committee strongly feels that protection of children from sexual offences has to be seen in a wider perspective. Confining it to confirmation of a sexual offence against a child followed by levying of punishment through special courts is simply ignoring the real welfare of a child victim who may be in deep trauma with no family support and thus fully exposed to further abuse. Every attempt both at individual level and society level has to be made for enabling a child victim to become again a happy normal child. To achieve this objective, a fully functional and effective institutional mechanism has to be put in place and that can only done through making statutory provisions, formulating rules and guidelines. The Committee observes that the Juvenile Justice (Care and Protection of Children) Act, 2000 is meant for all the children who require care and protection due to their placement in certain situations as specified in the said Act. The JJ Act has detailed provisions for relief and rehabilitation of such children. Under the Act state governments are required to set up Child Welfare Committees, which are empowered to dispose of cases for care, protection, treatment, development and rehabilitation of children and provide for their basic needs and protection of human rights. There is also provision for children’s homes, shelter homes and also a provision for rehabilitation and social reintegration.

9.232 The Committee was given to understand that the Juvenile Justice Law needs to be strengthened or otherwise adequate provisions may be built into the proposed law referring to the Juvenile Justice Law. The role of the District Child Protection Societies, Special Juvenile Police Units, Child Welfare Committees, Welfare Officers and Probation Officers provided for in the Juvenile Justice Law is critical in ensuring speedy recovery, social reintegration and rehabilitation of child victims. Feedback made available to the Committee clearly indicates that these institutional mechanisms under the Juvenile Justice Law are yet to be established in many states and wherever established cannot be considered to be performing their mandated task. The Committee would appreciate if an assessment of all such functionaries is made to so as to have the real picture of the ground realities. Inputs provided to the Committee in this regard can be easily acted upon in coordination with NCPCR and other stakeholders.

Training of functionaries dealing with Child victims at different levels

9.233 The Committee appreciates the variety of mechanisms available for training of different categories of functionaries. The Committee would, however, like to emphasize that it would be appropriate to make an assessment of all the training programmes being conducted by different agencies so as to ensure that benefits of such programmes are availed by all concerned. Co-ordination and monitoring by the Ministry in this vital area will make the difference.

230 Monitoring Mechanism

9.234 The Committee understands that on Juvenile Justice, the Supreme Court had decided to designate a High Court Judge or a Committee of High Court Judges in every state to monitor the implementation of the Juvenile Justice Act. Wherever such Committees exist, there has been a great improvement. The Committee feels that a similar mechanism for this Bill will also be required. Perhaps the mandate of Juvenile Justice Committees of High Courts can be extended with suitable adaption to cover matters of sexual offences against children also. The Committee strongly feels that an effective and functional/monitoring mechanism will have to be evolved for the proposed law. The Committee would appreciate if the Ministry initiates action for having a monitoring mechanism in advance.

Role of NCPCR/SCPCR

9.235 NCPCR may be rightfully considered for a monitoring role under this Bill as envisaged to it under section 31 of the RTE Act, 2009. The NCPCR could widely publicize the provisions of the Bill and could get appropriate training and orientation programmes organized for concerned stakeholders. It may also undertake a periodic evaluation study of the implementation of the proposed legislation and recommend corrective measures to fill in the gaps in its implementation. Similar role could be envisaged for SCPCRs also. Details for periodic monitoring and Details for periodic monitoring and evaluation mechanism could be provided in the Rules to be framed under the Act.

Clause 2: Definitions

9.236 The Committee observes that the Juvenile Justice (Care and Protection of children) Act, 2000 also defines the juvenile or child as a person who has not completed eighteen years of age. This definition is not qualified by the words "save as otherwise provided". On the same analogy, the Committee also feels that the words "save as otherwise provided" be removed from the provision to avoid any misunderstanding.

9.237 The Committee feels that the definition of the term "shared household" in the Protection of Women from Domestic Violence Act, 2005 pertains to ownership, right, title, interest and equity of the household by the aggrieved person or the respondent or both. The purpose of the definition of "shared household" in the proposed legislation is vastly different from that of the Protection of Women from Domestic Violence Act, 2005. Therefore, the Committee recommends that the definition may be amended with the Bill.

9.238 The Committee observes that it is a fact that creation of multiple courts/legal infrastructures will serve no useful purpose. Wherever, the legal framework has been created under the Commissions for Protection of Child Rights Act, 2005 the same should be used for the purposes of the proposed law. The Committee, accordingly, recommends that a proviso to clause 28(1) may be added.

Clause 7: Sexual Assault

9.239 The Committee is of the view that once the age of child has been specified as 18 years, the element of consent should be treated as irrelevant upto this age. Therefore, the provisos to clauses 3 and 7 of the Bill should be deleted to protect the rights of child and for the sake of protecting children against abuse. This would also be in consonance with the country's commitment towards UNCRC and the Juvenile Justice Act, 2000.

9.240 The Committee has also a word of caution. By having the element of consent, the focus would be on the victim which would invariably lead to revictimisation of the victim in the hands of the justice delivery process and would be especially problematic when dealing with children. The Committee would like to point out that a great deal of jurisprudence supports the theory that law should move away from this classical approach of trials in such cases and focus on the conduct of the accused and the circumstances surrounding the offence rather than the conduct of the victim thereby obviating the necessity of lengthy cross-examination of the victim on the issue of consent.

231 Clause 5: Aggravated Penetrative Sexual Assault and clause 9: Aggravated Sexual Assault

9.241 The Committee feels physical and mental incapacity are two different issues and usually mental trauma is not indicated through obvious manifestations but is understood through various behavioural and emotional indicators and to assess the mental incapacity trained professionals are required. Therefore, the Committee suggests that the clauses 5(j) and 9(j) may be reworded as “Physically incapacitates the child or causes the child to become mentally ill as defined under the Mental Health Act, 1987 or causes impairment so as to render the child unfit to perform regular tasks, temporarily or permanently.”

9.242 The Committee also feels that some provision protecting the interests of Children belonging to Scheduled Castes and Scheduled Tribes should be added to the clause. The Committee's recommendation is based on the premise that SCs/STs are still marginalized groups in the society and there are cultural and social practices that make them more vulnerable to sectarian violence. Accordingly change may be effected in clause 5(s) and 9(s).

Clause : 16 Abetment of an offence

9.243 The Committee feels that the serious problem involving many complexities has to be dealt with by the use of effective legislative provisions with an in built monitoring mechanism and required implementing agencies in place.

9.244 The Committee is of the view that with increasing trend of child trafficking cases and no exclusive legal mechanism therefor, there is a need for taking some initiative in this direction. It is true that child trafficking cases may not always relate to sexual exploitation, but whenever there is such an instance, it has to be curbed effectively for which legal support is essential. The proposed legislation deals with all kinds of sexual assaults and harassments mainly on individual basis. However, in child trafficking cases, the perpetrator may not be directly considered an offender. This category of sexual exploitation of child victims has also to be addressed. The Committee would also like to point that since India has ratified the Convention on Transitional Organized Crimes and its Optional Protocol on trafficking in human beings, it becomes even more necessary to define ‘child trafficking for sexual purposes’ in the proposed legislation.

Clause 19: Reporting of offences

9.245 The Committee is not aware whether any assessment about the functioning of SJPUs has been made either by the Ministry or any independent agency so far. If not, it is high time that such a study is got conducted so as to know whether such units have been set up in each district and wherever set up about their functional status. It is all the more required in view of the fact that mandate of SJPUs is going to be expanded under the proposed legislation. The Committee would also like to point out that the Child Welfare Committees set up in each district of the country under section 29 of the JJ Act are the final authority to dispose of cases for the care, protection, treatment, development and rehabilitation of children as well as to provide for their basic needs and protection of human rights. To say that these Committees will also have to report complaints of sexual offence to SJPUs or the local police does not seem to be the right argument. The Committee would like to point out that under section 32 of the JJ Act, besides any public servant, childline social worker, any child in need of care and protection may be produced before the Child Welfare Committee by any police officer or SJPU or designated police officer. Therefore, it would be in the fitness of things if the Child Welfare Committees like SJPUs or local police also become the designated authority to receive complaint from the child and report the matter to the Special Court after completing all the procedural formalities. The Committee, therefore, recommends that Child Welfare Committee may also be included under clause 19(1).

9.246 So far as reporting by general public is concerned, the Committee feels that general public should be encouraged to report and reporting in good faith must not invite civil or criminal liability. The Committee, accordingly, suggests that clause 19(2) may be re-worded as "No liability civil or criminal shall be incurred by any person for giving in good faith of information for the purpose of sub-section(1)". Numbering of subsequent sub-clauses may be modified accordingly.

232 Clause 22: Punishment for false complaint or false information

9.247 The Committee observes that the National Commission for Protection of Child Rights, the statutory body at the national level meant to act as a watch dog for protection of child rights is in agreement with this provision. The Committee understands that the proposed law is meant to instill in children a sense of confidence to report abuse and exploitation instead of deterring them from reporting. But at the same time, provision of this proposed law is not meant for settling scores and such attempts need to be curbed. The argument that the CrPC contains adequate provisions to deal with false complaints is also not very convincing. The Committee has observed that all such legislations invariably have a provision which would serve as a deterrent in case of false complaints being made. The only thing is to ensure that such a provision is free from any unnecessary or uncalled for stipulation.

Clause 24: Recording of Statement of a Child and Clause 27: Medical Examination of a Child

9.248 The Committee would like to point out that as has been seen in the cases of the sexual abuse of women, their trials often lead to re-victimisation and ignominy, as the trial process itself makes the victim to relive the horrific experience. And, in the case of a child, due to her/his vulnerability it may lead to further trauma. It is also a fact that the existing institutional mechanisms have not proved to be adequate enough to address the sexual offence cases against both the women and children.

9.249 The Committee observes that where the accused is known to the victim or is part of the family, their families being under great pressure sometimes turn hostile in the court. Not only that, incest cases seldom get reported and when reported, do not proceed for too long and fall out in the course of the trial. Situation becomes more grave when the accused is a person in authority such as the superintendent of an institution or school principal or teacher etc. During its interaction with various stakeholders, it was emphasized that there were inadvertent delays in both medical examination and trials, inadequate protection for victims and witnesses inspite of there being prescribed guidelines. Committee's attention has been drawn by directions/guidelines given/laid down by High Courts in this regard. The Committee would particularly like to make a reference to the guidelines in a child abuse case detailing the role of police, medical examination, recording of statement before magistrate, Trial Court procedure given by Delhi High Court in WP (Crl.) No. 930/2007. In view of such a discouraging scenario and the acute sensitivity of the issue involved the Committee strongly feels that the detailed procedures as given in the aforesaid Delhi High Court guidelines and those suggested by NCPCR and other stakeholders are valuable and merit serious consideration by the Ministry especially in the context that the proposed legislation has been brought from the perspective of the child welfare. The Committee, accordingly, recommends that Chapter VI relating to 'Procedures for recording statement of the child', particularly clause 24 and 27 may be reviewed and made more extensive in line with the suggestions made by NCPCR and High Court guidelines.

Clause 28:Designation of Special Courts

9.250 The Committee also feels that there should be no multiplicity of institutions i.e designated courts set up to address special situations would require infrastructure, trained manpower and other resources. The Committee suggests that wherever Special Courts have been designated under the CPCR Act, 2005, they should try offences under the proposed Act also. Further, wherever, such courts have not been designated uptill now, they may be set up under the proposed Act expeditiously.

Clause 33: Procedure and Powers of Special Courts and Recording Evidence

9.251 The Committee feels that the principle of leaving the discretion to the Special Courts to decide about the compensation may be done away with in respect of child victims. It would be in the spirit of the legislation to award compensation in each case, a part of which may come from the accused. The mechanism for having such a facility may be worked out in consultation with State Governments and other stakeholders. Another alternative system which can be looked into is to set up a Fund under State Government/Special Court with initial contribution from the State Government and amount of penalty as and when imposed on the accused which can provide relief to the victims.

233 VIII. Secretariat

9.252 The Committee Section (HRD) headed by an Assistant Director constitutes the Secretariat of the Committee. An Additional Secretary, a Director and a Joint Director remained in-charge of the Branch.

9.253 To assist the Committee in its work, material received from the Ministries/Departments/various non- government organizations and individuals was studied from which points were culled out. The questionnaires for written replies/evidence were also prepared for the use of the Committee.

9.254 The work relating to drafting, consideration and approval of draft reports by the Committee along with their presentation, laying, printing and distribution was undertaken. The Secretariat also dealt with the work relating to the scrutiny of action taken notes received from the Ministries/Departments concerned on the recommendations contained in the Reports of the Committee and prepared the Draft Action Taken Reports of the Committee on it.

9.255 The Secretariat also studied material like Parliamentary Debates, Answers to Parliamentary Questions. Budget Estimates, Five Year Plan Documents, Books, Journals, CAG reports, newspapers etc. relevant to the subjects under examination of the Committee.

234 ANNEXURE-XII (See Para 9.6)

Details of the sittings of the main Committee on Human Resource Development during the year 2011

Sl. No. Date Duration Subject Hrs.-Mts. 1. 17.01.2011 1.05 To consider & adopt the following Reports:— (i) Draft 229th Report on the Architects (Amendment) Bill, 2010 (ii) Draft 230th Report on the M/o WCD (iii) Draft 231st Report on the M/o YA&S (iv) Draft 232nd Report on the D/o SE&L M/o HRD (v) Draft 233rd Report on the D/o Higher Education M/o HRD 2. 31.01.2011 2.40 (i) To hear the Secretary, M/o WCD on the Juvenile Justice (Care and Protection of Children) Amendment Bill, 2010 (ii) To hear the Secretary, Department of Higher Education on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 3. 14.02.2011 1.55 (i) To consider and adopt 234th Report on the Central Educational Institutions (Reservation in Admission) Amendment Bill, 2010 (ii) To hear the Chairman, AICTE on the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 and the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 4. 15.02.2011 6.35 To hear views of representatives of various universities/Institutions on the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 and the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 5. 22.02.2011 0.30 To consider and adopt draft 235th Report on the Juvenile Justice (Care and Protection of Children) Amendment Bill, 2010 6. 08.03.2011 2.15 To hear the Vice Chancellor of JNU, IGNOU and the Chairman UGC on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 7. 17.03.2011 1.30 To hear the Additional Secretary, M/o Health and Family Welfare and the Chairman, Board of Governors, MCI on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 8. 30.03.2011 2.50 To hear the various representatives on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010

To hear Prof. Raj Kachroo, Findser Trustee Aman Satya Kachroo Trust on Eradication of Ragging in Higher Educational Institutions. 9. 19.04.2011 2.10 To hear the representatives of NSUI, ABVP, AISF and SFI on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010

235

Sl. No. Date Duration Subject Hrs.-Mts. 10. 20.04.2011 6.15 (i) Clause-by-clause consideration of the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 (ii) Presentation by Secretary, D/o Higher Education on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 (iii) Presentation by Secretary, WCD on the Protection of Women against Sexual Harassment at Workplace Bill, 2010

11. 5.05.2011 6.00 (i) To hear the Secretary, D/o Higher Education on the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 (ii) Clause-by-clause consideration of the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 (iii) To hear various organizations on the Protection of Women Against Sexual Harassment at Workplace Bill, 2010

12. 19.05.2011 1.35 To hear the witnesses on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 13. 26.05.2011 1.30 To consider and adopt draft 236th Report on the Prohibition of Unfair Practices in Technical Educational Institutions, Medical Educational Institutions and Universities Bill, 2010 14. 3.06.2011 2.30 To hear the Secretary, Department of Higher Education on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 15. 20.06.2011 2.00 To hear the witnesses on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 16. 28.06.2011 2.07 (i) To hear the witnesses on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 (ii) Clause-by-clause consideration of the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010

17. 6.07.2011 1.15 To deliberate on the following issues:— (i) Problem of Ragging prevalent in the Educational Institutions and anti-ragging measure taken to tackle it. (ii) High cut-offs declared by various colleges in Delhi University (iii) 18. 15.07.2011 2.15 To hear the Secretary, Department of Higher Education on the menace of ragging in higher educational institutions and admission procedure in Delhi University

236

Sl. No. Date Duration Subject Hrs.-Mts. 19. 22.07.2011 1.30 (i) To consider and adopt draft 237th Report on the Foreign Educational Institutions (Regulation of Entry & Operation) Bill, 2010 (ii) Clause-by-clause consideration of the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 20. 8.08.2011 1.30 To consider and adopt the draft 238th Report on the National Accreditation Regulatory Authority for Higher Educational Institutions Bill, 2010 21. 18.08.2011 1.45 (i) To hear the Member Secretary, NCW the Protection of Women against Sexual Harassment at Workplace Bill, 2010 (ii) To hear the Secretary, M/o WCD on the Protection of Children from Sexual Offences Bill, 2011 22. 29.09.2011 3.50 To hear the witnesses on the Protection of Women against Sexual Harassment at Workplace Bill, 2010 23. 30.09.2011 2.35 To hear the witnesses on the Protection of Children from Sexual Offences Bill, 2011 24. 13.10.2011 5.30 To hear the witnesses on the Protection of Women against Sexual Harassment at Workplace Bill, 2010 and the Protection of Children from Sexual Offences Bill, 2011 25. 2.11.2011 1.30 To have a final discussion with the Secretary, M/o WCD on the issues and queries raised by the stakeholders and the members during the deliberation of the Committee on the Protection of Women against Sexual Harassment at Workplace Bill, 2010 26. 11.11.2011 1.40 To have clause-by-clause consideration of the Protection of Women against Sexual Harassment at Workplace Bill, 2010 27. 23.11.2011 1.40 To have discussion with the Secretary, Department of School Education & Literacy on the Right to Education Act 28. 30.11.2011 0.20 To consider and adopt the draft 239th Report on the Protection of Women against Sexual Harassment at Workplace Bill, 2010 29. 8.12.2011 1.00 To hold clause-by-clause discussion on the Protection of Children from Sexual Offences Bill, 2011 30. 19.12.2011 0.30 To consider and adopt draft 240th Report on the Protection of Children from Sexual Offences Bill, 2011

237

CHAPTER-X COMMITTEE ON INDUSTRY

I. Composition of the Committee

10.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

Shri Tiruchi Siva — Chairman

RAJYA SABHA

2. Shri G. Sanjeeva Reddy 3. Shri Bhubaneswar Kalita 4. Shri Ashk Ali Tak 5. Shri K. B. Shanappa 6. Shri Natuji Halaji Thakor 7. Prof. S. P. Singh Baghel 8. Shri K. V. Ramalingam 9. Shri Nandamuri Harikrishna 10. Dr. Vijay Mallya

LOK SABHA

11. Shri Suvendu Adhikari 12. Shri Badruddin Ajmal 13. Shri N. S. V. Chitthan 14. Shri Bansagopal Chowdhury 15. Shri Sabbam Hari 16. Smt. Poonam Veljibhai Jat 17. Shri Ram Singh Kaswan 18. Shri M. Krishnaswamy 19. Shri Pakauri Lal 20. Smt. Ingrid Mcleod 21. Shri Bharat Ram Meghwal 22. Shri Devendra Nagpal 23. Shri Gorakhnath Pandey 24. Shri Kishanbhai V. Patel 25. Shri B. Y. Raghavendra 26. Shri Ramsinh Rathwa 27. Shri Arjun Charan Sethi 28. Shri Raju Shetti 29. Shri Suresh Kashinath Taware 30. *Shri Ijyaraj Singh 31. Vacant

*Nominated on 18th October, 2010

238 10.2 The Committee was re-constituted on 31st August, 2011 with the following composition:—

Shri Tiruchi Siva — Chairman RAJYA SABHA 2. Shri G. Sanjeeva Reddy 3. Shri Bhubaneswar Kalita 4. Shri Ashk Ali Tak 5. Shri K.B. Shanappa 6. Shri Natuji Halaji Thakor 7. Prof. S.P. Singh Baghel 8. Shri Srinjoy Bose 9. Shri Nandamuri Harikrishna 10. Dr. Vijay Mallya

LOK SABHA

11. Dr. Rattan Singh Ajnala 12. Shri Kamlesh Balmiki 13. Shri Sabbam Hari 14. Smt. Poonam Veljibhai Jat 15. Shri Ramsingh Kaswan 16. Shri Kaushalendra Kumar 17. Smt. Putul Kumari 18. Shri M. Krishnaswamy 19. Smt. Ingrid Mcleod 20. Shri Bharat Ram Meghwal 21. Shri Somen Mitra 22. Shri Gorakhnath Pandey 23. Shri Krishnabhai V. Patel 24. Shri R.K. Singh Patel 25. Shri B.Y. Raghavendra 26. Shri Ramsinhbhai Patalbhai Rathwa 27. Shri Ijyaraj Singh 28. Shri E.G. Sugavanam 29. Shri Bibhu Prasad Tarai 30. Shri Suresh Kashinath Taware 31. Shri Subhash Bapurao Wankhede

II. Constitution of Sub-committee of the Committee on Industry

10.3 No Sub-committee was constituted during the years 2010 and 2011.

III. Subjects selected for examination

10.4 During the year 2011, the Department-related Parliamentary Standing Committee on Industry selected the following subjects for examination: —

Sl. No. Ministry/Departments Subject

1 Ministry of Micro, (i) Facilities to MSME Small and Medium (ii) Micro Finance Programme in MSME Sector Enterprises (iii) REMOTE Scheme-Coir Board (iv) Support to MSME, NSIC

239 Sl. No. Ministry/Departments Subject

2 Ministry of Heavy (v) CRR Scheme Industries (vi) Wage policy and manpower utilisation and Public Enterprises (vii) Technological upgradation and R&D initiatives in CPSEs and MSME sector (viii) Policy, Plan and Programme in CPSEs (ix) Review of the Performance of PSEs

IV. (a) Sittings of the Committee: 10.5 Till December 2011 the Committee held 16 sittings lasting for about 22 hours. The details of the meeting are given in Annexure XIII. (b) Sittings of the Sub-Committees: 10.6 Due to no constitution of the Sub-Committees, there was no meeting held during the year 2011.

V. Study Visits:

10.7 The Committee undertook study visits of various parts of the Country to have an indepth and on the spot study of their respective subjects during the year 2011 which are as under: Sl. No. Committee Dates Place of visits Agenda

1. Main Committee 4th to 10th Visakhapatnam- (i) Meeting with the January 2011 Hyderabad- Mumbai- representative of Dredging Banglore - Kochi Corporation of India, Hindustan Shipyard Ltd. to assess their functioning and performance as Schedule `B' PSE and Rastriya Ispat Nigam Limited to assess their functioning and performance as Schedule `A' PSE.

(ii) Meeting with represent- atives of Ferro Scrap Nigam Ltd. to assess their functioning and performance as Schedule `C' PSE, National Mineral Development Corporation Ltd. (NMDC) and to assess their functioning and performance as Schedule `A' PSE.

(iii) Meeting with the re- presentatives of Hindustan Cables Ltd. to assess their functioning and performance as Schedule `B' PSE.

240

Sl. Committee Dates Place of visits Agenda No.

(iv) Meeting with the representatives of Corporation Ltd., to assess their functioning and performance as Navaratna PSE. (v) Meeting with represent- atives of Shipping Corporation of India to assess their functioning and performance as Schedule `A' PSE. (vi) Meeting with the representative of MS&ME, Union Bank of India and SIDBI, Canara Bank and Vijaya Bank on availability of Credit facility to MS&ME unit and constraint faced by them. (vii) Meeting with the representatives of the NTPC Ltd. to assess their functioning and performance as Maharatna PSE. (viii) Meeting with the representatives of the Cotton Corporation of India Ltd. and HMT Ltd. and its subsidiaries to assess their functioning and performance as schedule `B' PSE (ix) Meeting with the representatives of the Bharat Electronics Ltd., Bharat Earth Movers Ltd. and Fertilizers and Chemicals Travancore Ltd. to assess their functioning and performance as Schedule `A' PSEs. (x) Meeting with the representatives of the Cochin Shipyard Ltd. to assess their functioning and performance as Schedule `B' PSE and meeting with representatives of State Bank of Travancore/ State Bank of Mysore and Coir Board to assess the (REMOT) Scheme in Kochi.

241 Sl. Committee Dates Place of visits Agenda No.

2. 16th to 22nd Banglore-Ooty- (i) Meeting with representative May 2011 Mumbai via of the Antrix Corporation Ltd. Coimbatore and Hindustan Aeronautics Ltd. on the issue of MoU performance (ii) Meeting with representative of the Syndicate Bank and State Bank of Mysore on the issue of Credit facility to MSME sector. (iii) Meeting with represent- atives of the HPF Ltd. on the issue of working and performance and select Associations. (iv) Meeting with represent- atives of Steel Authority of India Ltd. (Salem Steel Plant- Salem) and select Associations and konakan Railways Corporation Ltd. and Oil & Natural Gas Commission, Corporation Ltd and Ltd. on the issue of MoU performance. (v) Meeting with representatives of the Indian Overseas Bank, Central Bank of India and Dena Bank on the issue of Credit facility to MSME sector. (vi) Meeting with represent- atives of the KVIC on the issue of SFURTI in Karnataka. 3. 29th June to Bhubaneshwar- (i) Meeting with representatives 5th July 2011 Mumbai-Goa of the , , Indian Rare Earth Limited, NALCO, Rourkela Steel Plant, State Trading Corporation, Container Corporation of India, Rashtriya Chemicals and Fertilizers and Ltd. on the issue of MoU performance. (ii) Meeting with represent- atives of the Bank of Baroda, SBI on the issue of credit facility to MSME sector.

242 Sl. Committee Dates Place of visits Agenda No.

(iii) Meeting with represen- tatives of the Goa Shipyard, MMTC and Mazagaon Dock Ltd on the issue of MoU performance. 4. 14th to 21st Jaipur-Mumbai - (i) Meeting with represen- October 2011 Ahmedabad-Rajkot tatives of the Food Corporation of India Ltd. on the issue of MoU performance. (ii) Meeting with represen- tatives of the State Bank of Bikaner and Jaipur on the issue of credit facility to MSME sector. (iii) Meeting with represen- tatives of the Rajasthan Drugs and Pharma Ltd., Rajasthan Electronics & Instruments Ltd., Kotaand Hindustan Salts Ltd., Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd. Engineering Project India Ltd., Mahanagar Telephone Nigam Ltd. Indian Oil Corporation Ltd., National Thermal Power Corporation Ltd. and Gas Authority of India Ltd. on the issue of Technological up- gradation and Research & Development. (iv) Meeting with represen- tatives of the KVIC to assess the scheme of fund for regeneration of traditional industries in Maharashtra and Gujarat. (v) Meeting with represen- tatives of the Uniion Bank of India to assess the Credit Guarantee Trust for Micro and Small Enterprises. 5. 11th to 14th Chennai-Port Blair- (i) Meeting with represen- November Chennai tatives of the Nuclear Power 2011 Corporation of India Ltd. Bharat Electronics Ltd, Bharat Heavy Electricals Ltd. NHPC and Chennai Petroleum Corporation Ltd on the issue of MoU performance with emphasis on Technological up-gradation and Research & Development.

243

Sl. Committee Dates Place of visits Agenda No.

(ii) Meeting with represen- tatives of the Coir Board, KVIC and UT Administration on the issue of Development of Coir and KVI sector in Andaman & Nicobar Island (iii) Meeting with represen- tatives of the State Bank of India on the issue of Credit Guarantee Fund Scheme for Micro and Small Enterprises.

VI. Reports Presented:

10.8 During 2011, the Committee presented the following 9 (nine) Reports to both the Houses:—

Sl. No. Reports Date of Presentation/laying Subject in Rajya Sabha/Lok Sabha 1. 218th 23 February 2011 Revival and Restructuring of Hindustan Paper Corporation Limited pertaining to the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry)

2. 219th 23 February 2011 Revival and Restructuring of Cement Corporation of India Limited pertaining to the Ministry of Heavy Industries & Public Enterprises (Department of Heavy Industry) 3. 220th 8 March 2011 Action Taken Report on the 215th Report of the Committee on the Demands for Grants (2010-11) pertaining to the Ministry of Heavy Industries & Public Enterprises (Department of Heavy Industry) 4. 221st 8 March 2011 Action Taken Report on the 216th Report of the Committee on Demand for Grants (2010-11) pertaining to the Ministry of Heavy Industries and Public Enterprises (Department of Public Enterprises) 5. 222nd 8 March 2011 Action Taken Report on the 217th Report of the Committee on Demand for Grants (2010-11) pertaining to the Ministry of Micro, Small and Medium Enterprises. 6. 223rd 2 August 2011 Revival and Restructuring of North Eastern Handicrafts and Handlooms Development Corporation Ltd. pertaining to the Ministry of North Eastern Region

7. 224th 2 August 2011 Revival and Restructuring of Hindustan Photo Films Manufacturing Company Ltd., pertaining to the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) 8. 225th 3 August 2011 Revival and Restructuring of Hindustan Machines Tools Limited pertaining to the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry) 9. 226th 3 August 2011 Report on study on the working of Memorandum of Understanding System pertaining to the Ministry of Heavy Industries and Public Enterprises (Department of Public Enterprises)

244 VII. Summary of Recommendations (a) 218th Report

10.9 The modernisation and technological upgradation of the units under the Hindustan Paper Mill is of paramount importance. The plants and machinery based on three decade old technology is unacceptable in the competitive environment of twenty first century. Besides, in house research and development capability must be developed by using internal resources. The HPC by virtue of its status as a Miniratna Company enjoys necessary autonomy to adopt modern technologies. As the HPC was a profit making company investment of requisite amount for this purpose should have been done as a matter of routine strategy to augment its competitive ability. Absence of any action in this regard stands testimony to the failure of the management to take it forward and make it a leading player in the paper industry. The Department of Heavy Industry must adopt a strategy to address this problem on an urgent basis. If necessary it must mobilise the Planning Commission to allocate more resources to modernize such plants. The Committee feels that a public sector enterprise like that of the HPC which has been conferred with the status of Miniratna Company must provide leadership to other PSEs by adopting new technologies. The Committee notes that the Prime Minister of our country Dr. has declared that the Government is committed to improving the standards of efficiency and competitiveness of public sector enterprises and wanted to see them as model employers and global players in the years to come. The Committee strongly feels that modernisation and technological overhauling of the units of the HPC must be done on a continuous basis by allocating more resources for this purpose. Apart from enhancing its competitive ability vis-a vis the private players and improving its functioning it will contribute in its own way to the development of the north-eastern region which has been receiving special attention from the Government of India. It will also go a long way in inspiring the employees of the HPC to scale up their efforts for raising its productivity.

10.10 The Eleventh Five Year Plan document under the heading strategies for the paper industry states that “The foremost problem that needs to be addressed is increasing the raw material base of the industry. Vast opportunity exist on degraded forest land but the rights of local communities and the principle of JFM constitute an insurmountable obstacle in leasing out such land to paper mills. If these lands remain bereft of forests for prolonged periods, the issue would need to be revisited. In the meantime, wastelands should be considered for developing forests under appropriate Public Private Partnership arrangements, with the participation of local communities. The State Government also needs to consider ways of stimulating agro-forestry”. The Committee strongly recommends all the stakeholders including the Ministry of Environment and Forests to pay serious attention to the above observation of the Planning Commission for strengthening the raw material base of the HPC. Besides, due consideration must be given to use non-wood raw material which includes straw, bagassee, and waste paper for manufacturing paper. So far, the entire paper production process is dependent on wood, and agri-residue as raw material. However, the trend has been to use more non-wood raw material. The Third Five Year Plan document under the chairmanship of Prime Minister Jawaharlal Nehru had observed that “…the paper and newsprint industries will have to depend upon new raw materials in place of bamboo which has so far been their mainstay”. The Committee recommends that this may be seriously examined to lessen dependence on bamboo for manufacturing of paper. The Committee has inferred from its discussion that most of the paper industries use pulp instead of bamboo. However, as mentioned earlier it is understood that this is mostly imported. Use of such imported raw material might involve additional expenditure on the part of HPC and make it more dependent on foreign countries. Therefore cost factor must be taken into account while opting for such raw material. The HPC units are located in infrastructure deficient regions. Impediments for transportation of such raw materials may prove this option unsuccessful. On the whole this will lead to accentuation of loss being incurred by it. Most of the HPC units were established in the north eastern region due to abundant availability of bamboo there. Therefore the Committee is of the opinion that access of these units to wood pulp through organizational and sustainable plantation in the region itself sounds to be more reasonable, practical and economical and attention be focused on this aspect.

10.11 The Committee is disappointed to note that no action has been taken in this regard to address the major infrastructural bottlenecks faced by the HPC. In fact, it has been found that from October 2008 onwards the railways are not booking certain raw materials for manufacture of paper. As a result, the HPC is compelled to unload such raw material at Guwahati and re-loading them in trucks for onward journey to CPM. Often such journey undertaken in the hilly terrain gets disrupted due to land slides. Over and above this, a load restriction has been imposed on road transport due to the order of the Hon’ble Supreme Court of India. This restriction has

245 further aggravated the problems faced by the CPM. It has escalated the transportation cost of raw material and finished products. The problem has been further compounded by the losses suffered on account of handling of material at several places. The Committee, therefore, strongly recommends that the Railway Ministry must act on an urgent basis to pay heed to the request of the Minister of Heavy Industries and Public Enterprises for addressing the transportation problem of the HPC. The Committee underlines that the inter-ministerial co-ordination must be augmented for enhancing the efficiency of the public sector enterprises. This should be vigorously pursued in the context of the north-eastern region where public sector enterprises have to function in difficult terrain combining both the commercial and social objectives for the benefit of people inhabiting in the region.

10.12 The Committee strongly feels that the catalogue containing the requirement of the assistance by the HPC is valid, sound and prudent. This should be seriously taken note of by the Department of Heavy Industry, the Government of Assam, the Ministry of Railways, National Highway Authority of India and Planning Commission.

10.13 The detailed interaction the Committee had with officials of the HPC generate hope that it can achieve goals outlined in the road map. The Committee is mindful of the fact that the HPC once was a profit making body and its manifold accomplishments brought it the status of Miniratna. The loss suffered by it can be mitigated by addressing its concerns and constraints.

(b) 219th Report

10.14 The Committee painfully notes that the Cement Corporation of India suffered huge losses right since the inception of the operation of its plants. The Corporation cited host of reasons for incurring such losses. One of the key reasons, according to the Corporation, was the very location of the cement factories in areas which did not have ample infrastructural facilities. Those areas where these plants were set up did not have minimum amenities and conveniences in the form of township, community centres and health centres, etc. The investment made by the Corporation for the availability of such basic facilities added extra cost to its primary responsibility for producing cement. Over and above the cost required for the manufacture of cement, these facilities escalated its expenditure and, therefore, contributed to the over-capitalisation of the project. The Committee was informed by the officials of the Corporation that such extra burden in building up bare minimum facilities constituted a major factor behind the higher cost of production of cement. The background note supplied to the Committee noted “Almost every plant of CCI has been over-capitalised due to time and cost overrun resulting in very high interest and depreciation costs. This has resulted in very high fixed costs of these plants as compared to the industry standards”.

10.15 It is rather sad to note that some of the plants had to bear enormous expenditure for the purpose of getting access to quarry which is located in a very difficult and rough terrain. For instance, the topography of the quarry for the Bokajan and Rajban Plants was such that it required extra cost for mining the raw material and transporting it by employing ropeways. It seems that these plants had to face a hurdles race for producing cement and at the same time develop the region by their manufacturing activities. It is distressing that owing to such factors the company could never register profit up to the year 2004-05 barring insignificant profits on few occasions.

10.16 The Committee notes with concern that the Cement Corporation of India which was established to be a leading player in manufacturing cement and promoting balanced regional development had to go through such tragic state of affairs. It also notes with concern that no attempt was made for renovation, replacement and organization of its plants. In the background note supplied to the Committee, it has been stated under the heading ‘Future Strategy for Sustainable Revival’ that “The company learning from past mistakes plans to continue to invest a part of its profit for renovation, replacement, organization of its plants so as to keep them updated and avoid occurrence of obsolescence of technology in future”. The Committee feels that the Corporation committed a costly mistake. It is heartening to note that the Corporation has adopted a future strategy for sustainable revival one of the key components of which is to use part of its profit for organization and renovation. In fact, the Eleventh Five Year Plan dealing with the cement industry has observed that “The industry has been organization and some units can now boast of having the state of the art technology plants with energy consumption comparable with the best in the world”. The Committee is happy to note that the

246 officials of the Corporation are hopeful to not only register profit but also compete with the key players in the market. In fact, in its presentation before the Committee, the Corporation outlined the measures taken to turn around the company. The Committee sincerely feels that the stress given on expansion and organization of the operating plants would result in its revival and progress.

10.17 The Committee also takes note of the fact that the Corporation is introducing new product range such as 53-S Grade, special cement for manufacturing Railway sleepers and also introducing cement brand names Maha shakti (43 Grade), Param shakti (53 Grade), Poorna shakti (33 Grade) and Jal shakti (33 Grade PPC) for better brand image.

10.18 The Committee was informed of the following additional measures taken by the Corporation to make it buoyant and profitable: (1) Adopting aggressive marketing by entering into marketing alliance with reputed industrial houses. (2) Advertising campaign, TV hoardings, glow signs, wall paintings, etc., by allocating a budget of Rs.0.50 per bag. (3) Reducing employees’ strength by introducing Voluntary Retirement Scheme with the assistance of Government of India. (4) Boosting of employee’s morale by clearing their dues and cultivating confidence amongst them. (5) Employees’ participation in decision making process. (6) Cost reduction in all areas of activities, i.e., controlling of operational and non-operational costs. (7) Revenue generation by utilizing idle infrastructure.

10.19 The Committee notes that the host of measures adopted to support the CCI has helped it to transform this ailing Corporation and bring it to a level of profitable company at present. This is a noteworthy success. It has to be carried forward and the momentum of its revival has to be sustained.

10.20 The Committee finds that the BIFR recommended for infusion of funds. While Rs. 153.62 crore have been given as non-plan loan for repayment to secured and unsecured creditors and for meeting the VRS/VSS expenses, the plan assistance involving Rs. 30.67 crore for expansion of Rajban and Bokajan plants and upgradation of Tandur plant have been provided for. It is also envisaged that the CCI would pay to the Government of India the existing plan loan of Rs. 150.90 crore and fresh non-plan loan of Rs. 153.62 crore out of sale proceeds of seven non-operating plants.

10.21 The Committee while taking note of the measures of the Government of India for revival and restructuring of the CCI, would like to know the outcome of the money spent. It recommends that the Department of Heavy Industry (DHI) must closely monitor the way in which money is being spent for achieving the targeted goal and submit a detailed report in this regard to the Committee.

10.22 On the basis of the information supplied to the Committee it is evident that the recommendation of the BIFR to close down the aforementioned seven unviable units (at para 18) was revisited. Based on the revised assessment it was found that it would be possible to revive the five non-operating units (Adilabad, Kurkunta, Nayagaon, Akaltara and Mandhar Plants) and other three remaining non-operating units such as Chyarkhi Dadri, Delhi Cement Grinding Unit and Bhatinda Cement Grinding Unit would be sold out after the re-evaluation of their assets.

10.23 The Committee strongly recommends that due attention must be paid to the Techno Economic Feasibility Reports for the revival of non-operating plants either by starting production process there through joint ventures or by leasing them to the other cement manufacturing bodies. The Committee would like to get a detailed report in this regard, both from the Cement Corporation of India and the Department of Heavy Industries.

10.24 The Committee strongly recommends both to the Planning Commission and the DHI to pay heed to the above observations of the Eleventh Five Year Plan document and seriously undertake efforts for establishing captive power plants in the plants of the CCI. 10.25 The Committee strongly approves the demand of the CCI seeking enhancement of retirement age from 58 to 60. The Committee also strongly supports the stand of CCI for immediate posting of board level executive 247 in the key area of operations and marketing. It is understood that the public enterprises selection board is considering a proposal in this regard for creation of such posts. The Committee strongly recommends that the public enterprises selection board must clear such proposals immediately. The Committee also would like to have a report from the PESB in this connection.

10.26 The Committee feels that the demands and concerns of the CCI for posting of board level executives in the key area of operation and marketing and the immediate enhancement of retirement age from 58 years to 60 years to retain the qualified and experienced manpower are valid in the context of the articulation of the Prime Minister of our country who has strong faith on the ability of our public sector to face the taste of market scrutiny.

10.27 The Committee feels that the gradual revival of the Cement Corporation of India augurs well for its future. Its confidence in itself that it can diversify its products, improve the capacity of its exiting operating plants to bring it at par with the competitors capacity, to replace its old equipment with energy efficient equipment constitutes its forward looking attitude. The Committee hopes that with its increasing profit, it can positively emerge as a major player in the cement industry of our country.

10.28 The Committee takes note of the fact that company’s Board in its 298th meeting held on 22nd July, 2010 has authorized C&MD of the company to take necessary action for filling up of vacant posts arising out of normal retirement, resignation, death, etc., at Operating Units and Corporate Office with effect from the year 2010 as per Recruitment Rules and guidelines issued from time to time and the process of recruitment to fill up these posts is under progress. The Committee would like to have the status of progress made in this regard.

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10.29 The Committee is of the firm opinion that our auto component industry can be even more competitive if infused with cutting edge technology. Support of the Government to the R&D initiatives can lessen the burden on individual players and produce greater impetus in this direction. This aspect has also been modernised in the Eleventh Plan. In the plan document it has been pointed out that short term relief in corporate tax doled out by the Government to encourage R & D activates by auto and auto component companies is not enough. For sustained and effective R &D initiatives, the plan document has envisaged the Government assistance in setting up of world-class automotive testing and R&D infrastructure. In this background, the Committee fails to decipher the reason behind the Government’s recalcitrant attitude to institute a National Technology Development Fund. With the automotive industry growing at a very fast pace, any lag in the auto component manufacturing would result in serious impediments to the growth in automotive sector. Accordingly, the Committee reiterates its recommendation to create a National Technology Development Fund. The Department of Heavy Industry should take up the matter again with the Planning Commission and the Ministry of Finance.

10.30 Coal gasification has gained a lot of ground of late as a relatively green technology at considerably lesser cost. The nation is in dire need of such technology that has least carbon foot prints, at the same time adds to power production capacity. In this light, the Committee had recommended a budgetary support to BHEL of Rs. 350 crore for their coal gasification project. The Committee is unhappy to note that though this amount was only about one fourth of the total project costs, the Government could not allocate it to BHEL. The Committee desires to know the rationale quoted by the Planning Commission or the Ministry of Finance for not providing funds to the project. It also reiterates its recommendation for adequate budgetary support to the coal gasification project of BHEL. The Committee strongly recommends that the Department of Heavy Industry sensitise the Planning Commission to allocate enough resources for this purpose.

(d) 221st Report

10.31 The Committee has taken into account the fact that the Government has laid down certain criteria for the appointment of non-official Directors on the Boards of CPSEs. But what the Committee would like to reiterate is that if persons from the categories of Scheduled Castes, Scheduled Tribes, and OBC and women 248 categories come forward with the above mentioned criteria, they should be given preference. There by the Committee wants to re-emphasis the need for representation of these categories in the Board of CPSEs.

(e) 222nd Report

10.32 The Committee is disappointed to note that the Ministry has not forwarded its Action Taken/Comments. It takes a serious view of that Casual approach and is of the opinion that the matters highlighted in the said para is of grave concern which requires immediate attention. The Committee, therefore, reiterated its earlier findings as stated in the said para and expects the Ministry to come out with a suitable action taken/reply.

10.33 The Committee appreciates that some positive efforts are being made in that direction but feels that a lot is still need to be done as all the efforts are at the proposal stage. The Committee therefore, desires that an aggressive advertising campaign for MSME be expedited on priority besides awareness campaign in the low coverage areas under the Scheme.

10.34 The Committee further recommends that recommendations of working group set up by RBI to examine the Credit Guarantee Scheme shall be followed without any further delay and instructions in that regard is issued to Member lending institution so that units in the MSE sector may start availing that facility as soon as possible.

10.35 The Committee while noting the comments of the Ministry recommends that the salient features of draft Scheme on Rehabilitation of sick Micro, Small and Medium Enterprises be placed before it after the approval so that the Committee may have a future track of record.

10.36 The Committee notes that though there has been progress in organising the sensitization workshops/seminars benefiting the entrepreneurs but feels that time is still a long way to go. The Committee is of the considered view that more and more such sensitizations workshops shall be modernised by enhancing therein coverage to bring in more and more entrepreneurs keeping in view the growth and development of this sector.

10.37 The Committee is disappointed to note that the Ministry has not forwarded its Action Taken/Comments. It takes a serious view of that Casual approach and is of the opinion that the matters highlighted in the said para is of grave concern which requires immediate attention. The Committee, therefore, reiterates its earlier findings as stated in the said para and expects the Ministry to come out with a suitable action taken/reply.

10.38 The Committee is of the view that Ministry should closely monitor the entire process with the Ministry of Finance, Department of Expenditure as well Coir Board for creation of new posts and Committee may be informed of the progress made.

(f) 223rd Report

10.39 The Committee expresses its serious concern that the NEHHDC has not been restructured even after the report given by the BRPSE for making it a promotional body. All concerned must pay serious attention to the revival of this important modernisation which was set up to tap the enormous potential in the handloom and handicraft sector of the region. It proposes a comprehensive revival package which should be implemented in a time bound manner and not staggered over a long period of time. Till the Corporation is revived and restructured full budgetary support should be extended by the Ministry for Development of North-Eastern Region.

10.40 The Committee while interacting with the officials of the NEHHDC noted that they were diffident in replying to the queries of the Members of the Committee and even were not able to satisfactorily provide answers or clarifications on points raised by the Members of the Committee. The Committee got the impression that the involvement of the officials in running the affairs of the NEHHDC was not up to mark. It strongly felt that the half-hearted manner in which they were dealing with the questions of the Committee and quite often

249 taking long pauses to say or make remarks on the points raised by the Members, they were not at all efficiently running the work of the Corporation. The Committee, therefore, tends to conclude that there is a high degree of mismanagement and lack of interest in carrying forward the work of the Corporation.

10.41 The Committee recommends that the 90:10 funding pattern may be seriously considered for the revival of the NEHHDC.

10.42 The Committee strongly recommends the Government to consider the aforementioned points raised by the Secretary, DoNER and take appropriate steps for their early implementation.

10.43 The Committee recommends that the Corporation must explore markets in the eastern region of the country which has potential buyers for handicrafts and handloom products. These regions would be nearer to the North-Eastern part and, therefore, the cost of transportation of the goods and finished products would be relatively less.

10.44 The Committee is constrained to note that the Corporation is quite inert in understanding this trend among the youth, particularly those belonging to the middle class, and taking advantage of it for taping the prospective clientele. It, therefore, recommends that both the Corporation and the Ministry of Development of North-Eastern Region must prepare a strategy to explore new markets. It is not enough to maintain, as the Corporation did before the Committee, that the private players have better competitive ability to market handloom and handicrafts products at a price which is difficult for the Corporation to match. This is the age of innovation and creativity. The Government of India is observing the decade from 2010 to 2021 as the decade of innovation. When the term ‘innovation’ is used, its applicability in every sector including the handloom and handicraft sector assume critical relevance. The Committee strongly recommends that the officials of the DONER and the NEHHDC must come together to take appropriate measures so that the Corporation is revived and serves the purpose for which it was established in 1970s.

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10.45 The Committee strongly recommends that all concerned which include the Department of Heavy Industry and the Cabinet Committee on Economic Affairs must come forward to revive that enterprise which is first of its kind in the entire South East Asia.

10.46 The Committee was pained to note that the employees of the HPF are getting pay scales according to the recommendations of the 1987 Pay Committee Report. The Committee strongly recommends for immediate implementation of the 1997 Scale of Wages for them with immediate effect without linking it to Revival Proposal. It also recommends that salary support be continued to them till implementation of the revival of the Company.

10.47 The strength of an enterprise to a great extent flows from the strength of the leadership whose vision matters a lot to take it forward. The Committee understands that the HPF does not have a full time CMD. There are many public sector enterprises in India which have registered profit due to imaginative leadership of the CMDs. The Committee, therefore, recommends for the appointment of a full time CMD who would be in a position to convert adversities to opportunities.

10.48 The Committee also strongly recommends for introduction of a system for holding the management and the officers of the Department of Heavy Industry accountable for their lapses in making the Company unviable. That should be part and parcel of the revival project. There shall be a monitoring mechanism to ascertain the manner in which the revival package will be implemented. Strict vigilance in that regard is necessary.

10.49 The Committee during its visit to several parts of the country to study some of the sick public sector enterprises found that the role of the management was a key factor in making such enterprises sick. It has, therefore, noted that measures should be taken to make the management more accountable and committed. The personal involvement and dedication of the management will set an example of professionalism for making the company dynamic, viable and profitable. In the instant case of the Hindustan Photo Films it is important for

250 the Government of India to retain this Company and revive it. In case this only public sector enterprise in the Neelgiris district of Tamil Nadu is done away with, then the region will forever lose it and the Government cannot assure people to set another public sector enterprise. The Committee, therefore, strongly recommends that it is wiser to retain what is already available and revive and restructure it and adopt measures for its modernization.

10.50 The Committee feels that the bulk purchase of photo sensitive material by the Government hospitals from the HPF may help the Company to improve its financial position. That may be seriously considered and pursued.

10.51 This is the age of digital technology. In all sectors be it health care, defence, infrastructure, etc., the demand for digital technology is growing. Even hospitals have adopted digital X-ray. In view of such changing profile of technology, it is important for the HPF to go for introduction of new methods and innovations to make it more competitive and viable. It has noted that lack of investments for modernization resulted in massive loss for the Company. Let this not happen yet again. In replying to the question of Committee Secretariat concerning the R&D efforts being undertaken, the HPF stated that it has taken up projects for introduction of non-silver digital imaging technology. It is gratifying for the Committee to note that such steps have already been taken by the Company in association with M/s Technova and these have yielded job order revenue for it. The Committee, therefore, strongly recommends for the adoption of digital technology and modernization of all its functioning for making it a more profitable and socially useful Company.

(h) 225th Report

10.52 The Committee is extremely pained to know that the Government of India adopted a casual attitude in not taking measures for modernization of plant and machinery of HMT to face the increasingly competitive market. The Committee feels that the management of HMT will have to be held accountable for not keeping the company technologically and economically viable. There are many public sector enterprises which have successfully adjusted to a highly commercialized business environment and registered profit. A company like HMT which is engaged in machine tool sector has a wider market for supplying machines which are in growing demand across the economic segment.

10.53 India has a vast and expanding market for machine tools. Its volume is estimated to be approximately Rs.8000 crore out of which the HMT Machine Tools is able to capture Rs.200 crore only and rest of its is shared by private players and import from foreign countries.

10.54 Our economy is growing at a reasonably higher rate. It is also expanding and diversifying. Therefore, the demand for machine tools is bound to grow up. It is in this context that concerted efforts have to be made to tap this vast market by manufacturing such tools within our country. HMT Machine Tools has to show greater dynamism and business competence to increase its share of market for its products.

10.55 It can be done by employing better skills and market management. The Department of Heavy Industry referred the loss making HMT Machine Tools Ltd. and HMT Bearings Ltd. to the BIFR. At a time when the Government of India is acknowledging the resilience of public sector enterprises as a major factor for withstanding the financial crisis and at a time when the Government is reasonably happy with the performance of the PSEs, it is important that special and focused attention be given to the revival of HMT which can be made robust and forward looking.

10.56 The Committee, therefore, strongly recommends the Government for supporting the HMT Machine Tools in every way for its commercial viability and profitability. It compliments its top management for changing the attitude of the personnel of the Company and inculcating among them the much needed team spirit and understanding that they can once again make it commercially attractive, financially sound, technologically up to date and profitable. The recent initiatives ushered in by the management , it is hoped, will go a long way in creating a work culture which will help the Company to stand on its own strength and make a name for itself through its quality product and high levels of customer satisfaction.

251 10.57 The Committee, therefore, recommends that the subsidiaries must be given due independence and autonomy. If all the time these subsidiaries remained dependent on holding company, their own progress would be retarded by virtue of the fact that these will not be able to take faster decision for manufacturing products and doing business.

10.58 The Committee recommends that the changes that have taken place after the appointment of the part time Chairman and acting Managing Director must be taken note of by the Department of Heavy Industry.

10.59 The Committee is of the view that one person well acclaimed for his or her expertise in engineering and technological fields and with adequate experience of administering enterprises may be appointed as CMD for the HMT and its subsidiaries as a whole. He must be given full responsibility and independence to make decisions for making the HMT Machine Tools and other units more competitive and commercially relevant.

10.60 It is recommended that in case of HMT Ltd. which manufactures tractors the possibility of establishing joint ventures for this purpose may be explored. In case of HMT Bearings Ltd. it is recommended that a strategic partner may be tapped to carry forward its business and expand it. It is also proposed that infusion of more finance to it may be examined.

10.61 It is rather sad to note that the employees of most of the subsidiaries are getting pay scales which were determined in early 90s. It is all the more shocking to know that Senior Managers of the Company are drawing salaries which are less than that of the workers who due to accumulation of their annual increments get more salaries than the officers at the managerial position. This is an anomaly which demotivates those who are asked to play leadership role in the Company. The Committee understand that there are some sections of employees who did not draw their pay for several years. They pathetically pleaded before the Committee for payment of their salaries so that at least they would feed their families. In fact, the long pending pay/wage revision has to be put on fast track without which both the Company and employees would face hardships. In the absence of attractive pay scales the Company has lost valuable human resources to other private players.

10.62 It is painful to note that revival plan is under the consideration of the Government of India for almost half a decade. The slow pace at which the Government tries to consider the revival plan is indicative of its mindset in making our public sector undertakings viable from the point of view of business proposition. The Government’s commitment to strengthen public sector enterprises does not sound convincing the way it is treating the revival plan of the HMT group of companies.

10.63 During its presentation before the Committee, the HMT provided a road map on strategies to achieve its targets. While the HMT (International) which is a profit making subsidiary requested the Government to make it a nodal agency for projects of the Ministry of External Affairs, it wanted to appoint representatives in more countries to pursue its business activities. It also desires to scale up its business two hundred crores in two years and focus attention on high value machine tools/turn key projects. The Committee feels that its future road map and strategies are achievable. The success of the HMT (International) is indicative of the fact that range of the products of the HMT Companies such as machine tools, watches, tractors, bearings, general engineering products, industrial commodities software, etc., have a market outside the country. This means if the subsidiaries are made viable and profitable it can get more business abroad. Therefore, the Committee strongly recommends for the revival of the HMT and its subsidiaries.

10.64 It, therefore, recommends for the examination of this hopeful proposition and accordingly see if HMT watches can be made economically viable and attractive for the customers in the present day globalised market situation.

10.65 However, the Committee notes with concern that the inordinate delay on the part of the Government in taking up the revival package will further sink the loss making PSEs to a pitiable state of affairs.

10.66 The Committee recommends that the Government of India must expedite the revival process of HMT taking serious note of the special concern for the industry and employees on the whole.

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10.67 The Committee also feels that in an increasingly dynamic and competitive market system land, labour and capital will play a little lesser role in defining the business concerns of an enterprise. In fact, innovation will be central to the success of modern day business ventures. It is gratifying for the Committee to note that in the MoU system due weightage is given to research, development and innovation. During the course of the interaction of the Committee Members with the Officials of the Rourkela Steel Plant it was found that the plant did not allocate enough resources for the research and development. The management of the Steel Plant confessed that the research and development did not receive priority attention. It is rather unfortunate that a public sector steel plant which spearheaded steel production in our country after independence is lagging behind in research and development. The Committee, therefore, recommends that PSEs must earmark specific and adequate fund for pursuing research, development and innovation which are central to their success in the increasingly commercial and business environment. The administrative Ministries of all the PSEs must monitor the investment made by the concerned PSEs for this purpose. The Committee would like to get a report in this respect from the administrative Ministries.

10.68 The Committee feels that our energy security depends on our efforts to explore and exploit the oil resources available within the country. Therefore, the oil companies need to upgrade their technology for augmenting the oil supply. It is in this context that Committee recommends that more power must be given to the oil companies to exercise the choice for greater investment.

10.69 The Committee feels that the above observation of ONGC reflects the concerns of not only ONGC but most of the oil companies. The Committee, therefore, is of the view that these points raised by the ONGC may be kept in mind while signing MoUs.

10.70 The Committee has of the opinion that the administrative Ministries need to be more vigilant in ensuring that targets are realistically fixed taking into account the technological capability of PSEs. The Committee takes note of the observation of the Department of Public Enterprises that quite often the PSEs underpromise and overachieve. Such kind of approach does not help the PSEs concerned to give their best. It is, therefore, recommended that the administrative Ministry, the Department of Public Enterprises and the Task Force must jointly ensure that the PSEs set their targets as per their potential. Failure to do so will lead to their failure in the highly competitive business environment.

10.71 It has been brought to the notice of the committee that in several PSEs the posts of independent directors are lying vacant for quite some times. This situation has led to the suboptimal performance of Board of Directors which adversely impact efficiency and effectiveness of the PSEs. The Committee recommends for the immediate filling of these vacant posts of independent directors to the respective PSEs.

10.72 The Committee while examining some organizations found that these had spent crore of rupees to felicitate medal winners of the Commonwealth Games. They showed such expenses under the category of corporate social responsibility which is part of the MoU system. When the Committee asked the representative of the Department of Public Enterprises to clarify on the matter he maintained that that such activities do not come under the CSR scheme and, therefore, the concerned PSEs would not get any points under MoU performance. The DPE representative further stated that promotion of sports form part of the CSR activity. However, he maintained that expenses incurred for the purpose of felicitating award winning sports persons would not come under the category of promotion of sports. The Committee took a strong view on the matter and expressed opinion that CPSEs should not divert money meant for CSR activities for such programmes which involved felicitation of sports persons. The funds allocated for CSR should be spent in such a way which creates a long-term asset and such infrastructure which will be of lasting value for society.

10.73 The Committee also took a serious note of this issue and observed that the Department of Public Enterprises should issue some clarificatory guidelines to all CPSEs which will enlighten them as to how the funds under CSR should be spent.

10.74 The Committee observes that the MoU system which initially focused attention on accountability and autonomy of PSEs eventually stressed on their performance appraisal. The Department of Public Enterprises

253 maintained that a lot more has to be done by PSEs to stress on both financial and non-financial parameters. The Committee welcomes the measures taken by DPE to make MoU system more broad based by including three Ps which in expanded form means profit, people and planet.

10.75 It is the age when the business enterprises have to be run on the basis of modern principles which are different from the norms governing Government departments. Therefore, the Committee feels that the MoU system should be such which would enable the PSEs and its management to take advantage of the opportunities that are now available in the market for maximizing their profits. While doing so, the PSEs concerned must avoid the problems and threats which might pose danger to its commercial viability. The non-financial parameters in the MoU are often described as soft bellies. It is important, therefore, to give adequate weightage to both financial and non-financial parameters.

10.76 The time has now come for the corporate bodies not only to use their strategic assets but also take advantage of the opportunities available on a pro active basis. A laid back approach will not help in furthering the cause of business. The Committee, therefore, feels that MoU system must go beyond financial performance and give importance to the issue of productivity improvement.

VII. Secretariat

10.77 The Committee Section (Industry) headed by an Assistant Director, constitutes the Secretariat of the Committee. Joint Secretary, Director and a Joint Director remained in-charge of the Section.

10.78 To assist the Committee in its work, material received from the Ministries under its jurisdiction i.e. Ministry of Heavy Industry & Public Enterprises and Ministry of Micro, Small & Medium Enterprises, as also from other organization, associations and individuals was considered and studied, and relevant points were culled out. Questionnaires for written/oral replies were prepared for use of the Committee and compiled in the shape of the report.

10.79 The Secretariat also studied material like Parliamentary Debates, answers to Parliamentary Debates, answers to Parliamentary Questions, Budget Estimates, Economic Survey, Outcome Budget, Mid-Term Appraisal of the Eleventh Five-Year Plan, Books, Journals and Newspapers etc. relevant to the subject under examination of the Committee. The Secretariat also downloaded study material from websites on various subjects for use of the Committee's Members and preparation of questionnaire and reports.

10.80 The work relating to drafting, consideration and approval of draft reports by the Committee alongwith their presentation/laying, printing and distribution were also undertaken by the Secretariat.

254

ANNEXURE – XIII (See para 10.4)

Details of the sitting of the Committee on Industry during the year, 2011.

Sl.No. Date of Duration Subject Meeting Hr.-Mts. 1. 18.1.2011 1.51 To hear the Secretary, Department of Heavy Industry (Ministry of Heavy Industries and Public Enterprises) on the working of Instrumentation Ltd. Kota (Rajasthan). 2. 07.2.2011 1.15 To consider and adopt Draft Report Nos. 218 & 219 on the Revival and Restructuring of Hindustan Paper Corporation Ltd. and Cement Corporation of India Ltd. pertaining to the Department of Heavy Industry (Ministry of Heavy Industries and Public Enterprises). 3. 15.2.2011 1.50 To re-consider and adopt Draft Report Nos. 218 & 219 on the Revival and Restructuring of Hindustan Paper Corporation Ltd. and Cement Corporation of India Ltd. pertaining to the Department of Heavy Industry (Ministry of Heavy Industries and Public Enterprises). 4. 03.3.2011 1.30 To consider and adopt Draft Action Taken Report Nos. 220th, 221st and 222nd on the 215th, 216th and 217th Reports of the Committee on Demand for Grants (2010-11) pertaining to the Department of Heavy Industry and Department of Public Enterprises (Ministry of Heavy Industries & Public Enterprises) and Ministry of Micro Small & Medium Enterprises respectively. 5. 18.4.2011 1 .00 To discuss the draft Report on Revial and Restructuring of North Eastern Handicrafts and Handlooms Development Corporation Ltd. 6. 27.4.2011 1.00 To consider for adoption the draft 223rd Report on the Revival and Restructuring of North Eastern Handicrafts and Handlooms Development Corporation Ltd. re-drafted after including suggestions and proposals put forward by the representatives of Department of Public Enterprises, representatives of DoNER and NEHHDC during the meeteing and to hear Secretaries, Ministry of Textiles and Ministry of Development of North Eastern Region on the working and performance of the NEHHDC. 7. 09.5.2011 1.15 (i) To adopt the draft 223rd Report on the Revival and Restructuring of North Eastern Handicrafts and Handlooms Development Corporation Ltd. (ii) To hear the views of the representatives of select Burn Standard Company Ltd. Association on the Revival and Restructuring of BSCL. (iii) To hear the Secretaries, Department of Heavy Industry, Department of Public Enterprises and Ministry of Steel along with Chairman, Railway Board on the Revival and Restructuring of BSCL. 8. 26.5.2011 1.15 To consider and adopt Draft 224th Report on the Revival and Restructuring of Hindustan Photo Films Manufacturing Company Ltd. 9. 02.6.2011 1.05 To hear the Secretary, Ministry of Micro, Small & Medium Enterprises on the issue of Credit Facilities to MS$ME Sector. 10. 10.6.2011 1.45 To hear the Secretary, Department of Heavy Industry (Ministry of Heavy Industries & Public Enterprises) on the current status of the transfer of Salem Unit (Burn Standard Company Limited) to SAIL (Ministry of Steel). 11. 17.6.2011 1.40 To hear the views of the Ministries of MS&ME and Environment & Forests on the modified draft E-Waste (Management and Handling) Rules, 2011. 255 Sl.No. Date of Duration Subject Meeting Hr.-Mts. 12. 21.7.2011 1.20 To consider and adopt Draft 225th and 226th Reports on Revival and Restructuring of HMT Ltd. and General Performance of MoU system respectively. 13. 29.7.2011 1.05 To re-consider and adopt the revised 225th Report on Revival and Restructuring of HMT Ltd. and to consider and adopt Draft 226th Report on General Performance of MoU System. 14. 20.9.2011 1.00 Introductory meeting of the Committee 15. 29.9.2011 3.00 To hear the representatives of the Ministry of MS&ME on the issue of Credit facility to MS&ME 16. 09.11.2011 1.00 To hear the representatives of the Ministry of Steel and Metal Scrap Trade Corporation on the issue of E-waste Management.

256 CHAPTER-XI COMMITTEE ON PERSONNEL, PUBLIC GRIEVANCES, LAW AND JUSTICE

I. Composition of the Committee

11.1. The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

**Smt. ⎯ Chairperson RAJYA SABHA 2. Shri Shantaram Laxman Naik 3. ***Dr. Abhishek Manu Singhvi 4. Shri Balavant alias Bal Apte 5. Shri Ram Jethmalani 6. ♦Shri Parimal Nathwani 7. ♦Shri Amar Singh 8. ♦Shri Ram Vilas Paswan 9. ♦Shri O.T. Lepcha 10. ♦Shri M. Rajasekara Murthy♣ LOK SABHA 11. Shri N.S.V. Chitthan 12. Smt. Deepa Dasmunsi 13. Smt. Jyoti Dhurve 14. Shri D.B. Chandre Gowda 15. Dr. Monazir Hassan 16. Shri Arjun Munda 17. Shri Shailendra Kumar 18. Smt. Chandresh Kumari 19. Shri 19. Dr. Kirodi Lal Meena 20. Ms. Meenakshi Natarajan 21. Shri Devji M. Patel 22. Shri Harin Pathak 23. Shri Lalu Prasad 24. Shri S. Semmalai 25. Shri Vijay Bahadur Singh 26. Dr. Prabha Kishor Taviad 27. Shri Manish Tewari 28. Shri R. Thamaraiselvan 29. Adv. P.T. Thomas (Idukki) 30. Vacant

** Relinquished the Chairperson w.e.f. 12th July, 2011 on being inducted in the Council of Ministers. ***Nominated Chairman of the Committee w.e.f. 26th July, 2011. ♦ Nominated w.e.f. 21st September, 2010 ♣ Expired and ceased to be Member w.e.f. 5th December, 2010. 257 11.2. The Committee was re-constituted on 31st August, 2011 with the following composition:—

Dr. Abhishek Manu Singhvi ⎯ Chairman

RAJYA SABHA 2. Shri Shantaram Laxman Naik 3. Dr. Bhalchandra Mungekar 4. Shri Balavant alias Bal Apte 5. Shri Ram Jethmalani 6. Shri Sukhendu Sekhar Roy 7. Shri Ram Vilas Paswan 8. Shri O.T. Lepcha 9. Shri Parimal Nathwani 10. Shri Amar Singh

LOK SABHA 11. Shri Kirti Azad 12. Shri N.S.V. Chitthan 13. Smt. Deepa Dasmunsi 14. Shri D.B. Chandre Gowda 15. Shri Shailendra Kumar 16. Smt. Chandresh Kumari 17. Shri Prasanta Kumar Majumdar 18. Shri Arjun Ram Meghwal 19. Shri Pinaki Misra 20. Kumari Meenakshi Natarajan 21. Shri Harin Pathak 22. Shri Lalu Prasad 23. Adv. A. Sampath 24. Shri S. Semmalai 25. Shri Vijay Bahadur Singh 26. Dr. Prabha Kishor Taviad 27. Shri Manish Tewari 28. Adv. P.T. Thomas (Idukki) 29. Shri Arun Subhash Chandra Yadav 30. Shri Madhusudan Yadav 31. Vacant

258 II. Subjects selected for examination 11.3 During 2011, the Committee considered for detailed examination, the following subjects identified in the previous years:—

Sl. Ministry/Department Subject Status of examination No. 1. Ministry of Personnel, Implementation of Right to Information Act, Draft report stage Public Grievances and 2005. Pensions 2. - do - Backlog of reserved vacancies of Scheduled Draft report stage Castes, Scheduled Tribes and Other Backward Classes and Persons with disabilities. 3. - do - Stagnation in Promotions in the Inconclusive Ministries/Departments, Organisations, Public Sector Undertakings etc. 4. - do - Status of Women Government Employees Inconclusive Service Conditions, Protection against exploitation, incentives and other related issues. 5. Ministry of Law and Infrastructure Development & Strengthening Inconclusive Justice of the Subordinate Courts in the Country as part of Judicial Reforms. 6. -do- Appointment of Judges in higher judiciary. Inconclusive

11.4 The Committee considered and presented the Reports on the under-mentioned Bills which were carried forward from the previous year (2010):— (i) The Marriage Laws (Amendment) Bill, 2010; (ii) The Public Interest Disclosure and Protection to Persons Making the Disclosure Bill, 2010; and (iii) The Judicial Standard and Accountability Bill, 2010.

11.5 In addition to the above Bills carried over from the previous year, the Hon’ble Chairman, Rajya Sabha referred the following Bills:— (i) The Lokpal Bill, 2011. (ii) The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill, 2011. (iii) The Administrators-General (Amendment) Bill, 2011. The Committee presented its reports on the Lokpal Bill, 2011. The remaining two Bills are under consideration of the Committee. III. Constitution of Sub-Committees 11.6 During 2011, no sub-Committee was constituted. IV. Review of work done (a) Sittings of the Committee 11.7 The Committee held 24 sittings lasting for 31 hours & 36 Minutes during the year 2011. No quorum was attained in another 4(four) sittings. Statement showing the dates of sittings of the Committee held during the period under review, the duration of the sittings and the subjects discussed are given in Annexure XIV.

259 11.8 The Chairperson of the Committee held five Press Conferences in 2011. The Section assisted the Chairperson to hold the Press Conference.

(b) Materials and Memoranda furnished to the Committee. 11.9 Voluminous notes/documents were received from the concerned Ministries/ Departments on the Bills examined by the Committee during this period. 11.10 A large number of memoranda were received from the non-official organizations and individuals on different Bills examined by the Committee.

(c) Study Visits: 11.11 No study visit was undertaken by the Committee during the year, 2011. V. Reports Presented: (a) Reports During the period under review, the Committee presented the following Reports:—

Sl. Report Date(s) of Subject No. No. Presentation/Laying in Rajya Sabha/Lok Sabha 1. 45th 01.03.2011 Report on The Marriage Laws (Amendment) Bill, 2010. 2. 46th Presented on 09.06.2011 Report on The Public Interest Disclosure and Protection to in Rajya Sabha Persons Making the Disclosures Bill, 2010. Laid on 11.08.2011 in Lok Sabha 3. 47th 30.08.2011 Report on the Judicial Standards and Accountability Bill, 2010. 4. 48th 09.12.2011 Report on the Lokpal Bill, 2011.

(b) Action Taken Reports 11.12 No Reports on Action Taken by Government on earlier Reports of the Committee were presented during the period under review.

11.13 Minutes of 24 sittings of the Committee were prepared and placed before the Hon'ble Chairman, Rajya Sabha.

VI. Summary of Recommendations

(a) 45th Report

Report on The Marriage Laws (Amendment) Bill, 2010: 11.14 The Committee also does not see much linkage between this amendment and the main objective of the Bill, i.e., introduction of a new ground for grant of a decree of divorce. The Committee, therefore, is of the view that the existing provisions of law for divorce by mutual consent are fair and reasonable and the prevailing cooling off period be retained so as to protect and preserve the institution of marriage. The Committee, accordingly, is not in agreement with clauses 2 and 6 of the Bill. 11.15 The Committee, accordingly, recommends that the Bill should provide for some safeguards so that the new ground for divorce is not misused. The Committee also recommends that the Government may consider defining the term “irretrievable breakdown of marriage” in the Bill so that some uniform standards are followed in dealing with divorce petitions by the Courts.

260 11.16 The Committee notes that the term ‘grave financial hardship’ appearing here is capable of varied interpretation. Further, it may be difficult for the wife to satisfy the court that it would ‘in all circumstances be wrong to dissolve the marriage’. Not only this, the provisions of the Bill talk of ‘grave financial hardship’, i.e., divorce may not be allowed on this ground if the wife is being subjected to a ‘grave’ financial hardship. Does it mean that court may proceed with the grant of a decree of divorce on this ground despite the fact that the wife may be put to ‘financial hardship’ and not “grave” financial hardship? The Committee, accordingly, recommends that the term “grave financial hardship” may be defined so that there is less of ambiguity. The Committee further recommends a review of these provisions of the Bill so that the interests of the women are better safeguarded in the divorce proceedings in the court.

11.17 The Committee finds that the proposed Bill covers only those children who are born out of the marriage, thereby leaving out the case of ‘adopted’ children. The Committee would like the Government to clear their position with regard to the adopted children also in the Bill.

11.18 Accordingly, the Committee feels that there should be some effective legal mechanism so that the women at least get their share in the matrimonial property which has been acquired during the subsistence of marriage. The Committee, accordingly, recommends the Government to make adequate provisions in the Matrimonial Law to ensure that the courts, while adjudicating on divorce petitions, also decide upon women’s share in the matrimonial property while granting divorce so that they are not deprived of the assets/properties in which they have contributed during the continuance of marriage. The Committee is strongly of the view that liberalization of the laws of divorce should essentially be accompanied with appropriate provisions recognizing the legitimate rights of the women on the matrimonial property/assets at least, in which they have their share of contribution.

11.19 The Committee, accordingly, despite being in agreement with the rationale of the Bill, i.e., adding ‘irretrievable breakdown of marriage’ as a new ground of divorce, is not in agreement with the various clauses of the Bill, be it doing away with the cooling off period in case of divorce by mutual consent or the conditions enumerated in the Bill for granting divorce on the ground of ‘irretrievable breakdown of marriage’. The Committee feels that these provisions are liable to be misused against women. The Committee, accordingly, recommends that the Government should reconsider the various clauses of the Bill keeping in view the Committee’s apprehensions and suggestions and a revised comprehensive Bill may be brought thereafter.

(b) 46th Report

The Public Interest Disclosure and Protection to Persons Making the Disclosures Bill, 2010.

11.20 The Committee recommends that the suggestions made/concerns raised by the stakeholders in the above mentioned paras should be seriously considered by the Ministry and appropriately included in the Bill to the extent feasible. Eventually, the Bill should be dealing with all such wrongdoings. The Committee, however, specifically recommends that the suggestion of CVC to cover accrual of wrongful gain to third party should be incorporated in clause 2(d)(ii) of the Bill. The Committee also recommends to Government to examine the suggestion of the CVC regarding defining the term “Public Servant” in the Bill when the term already stands defined under the IPC and the PC Act.

11.21 The Committee takes note of the grave concerns raised regarding the exception created in relation to the defence/intelligence forces vide proviso to Clause 3(1) of the Bill. In Committee's view, the Ministry has not furnished cogent reasons for excluding such Agencies/Forces from the ambit of the Bill. It is pertinent to note at this point that under the RTI Act, 2005, no such exemption has been given to the Armed Forces. Further, the RTI Act does not completely exempt the intelligence and security organisations and information in relation to such Organizations is disclosable in cases of corruption and human rights violations. Since this Bill is ultimately aimed at tackling corruption, the Committee does not find any logical reason behind such an exemption. The Committee feels that the Bill under examination should not exclude the defence forces/ intelligence and security organsations in this matter.

11.22 Government may, however, while doing away with such exemptions, come out with suitable and reasonable exceptions, in order to keep a balance between the operational needs of these forces and their accountability to the public. Government may, alternatively, even consider setting up a separate authority for

261 these exempted agencies under the Bill or special laws may be enacted on the lines of the USA. The Committee directs the Government to examine this proposal in more detail so that no organisation of the Government is left out from public scrutiny and accountability in such a manner.

11.23 The Committee finds merit in the foregoing views that have come up before it. The Committee desires that the Ministry should consider bringing the members of Council of Ministers, the judiciary including the higher judiciary, regulatory authorities, etc. within the ambit of this Bill by making necessary amendments in the Bill.

11.24 The Committee feels that the doubts arising from various quarters, regarding the efficacy of providing CVC/SVCs as the sole authority authorized to receive a public interest disclosure complaint are not unfounded particularly from the view point of access from remote areas. Accordingly, the Committee urges upon the Ministry to ensure that necessary provisions are made in Rules/Regulations putting in place a smooth and convenient system for receipt of the disclosure complaints. At this point, the Committee would like to stress upon the crucial point that if multiple points are to be made for receipt of public disclosure complaints, it has to be particularly ensured that the identity of the complainant is protected for sure and no loopholes creep in, weakening the system.

11.25 The Committee takes cognizance of the comments of the Ministry on the issue that a mechanism can be provided under the Rules/Guidelines to ensure that the identity of the complainant remains confidential in cases where the complaint is received electronically. The Committee takes serious note of the concerns raised by the witnesses regarding ensuring confidentiality of the identity of the complainant. The Committee strongly recommends that the Ministry should envisage a fool-proof mechanism in every respect which would ensure that the identity of the complainant is not compromised with, at any cost and at any level. The Committee would like to place emphasis on this aspect since it feels that the absence of such a mechanism would deter prospective complainants due to fear of harassment, victimization, etc. or even physical harm which, in turn, would hamper the realization of the objective of this legislation.

11.26 The Committee finds merit in the suggestion made by the stakeholders that if an anonymous complaint is received by the Competent Authority, and the facts mentioned in the complaint and the supporting documents reveal a prima facie case, the Competent Authority should not reject it only for want of identity of the complainant. In Committee’s view, anonymous complaints, if substantiated, would make the task of the Competent Authority easier as it would be less worried on the aspect of protecting the identity of the complainant which is an important objective of the Bill. The Committee recommends that the Government may also consider an alternative mechanism within/outside the Bill, for enquiring into anonymous complaints.

11.27 As stated in para 5.32 of this Report, protecting the identity of the complainant is pivotal to the successful implementation of this statute. In order to make sure that the interest of the complainant are protected, the Committee endorses the majority view placed before it that the identity of the complainant should not be revealed by the Competent Authority to the Head of the Department, without the written consent of the complainant.

11.28 The Committee strongly feels that since the main intention of the complainant while making the disclosure is protection of public interest, undue burden should not be placed on him/her to provide proof to substantiate his/her case. Moreover, it would be unreasonable to expect a private citizen, who is the sufferer or at the receiving end having minimal resources at his/her disposal, to place before the Competent Authority proof sufficient to substantiate the complaint. The Committee is of the considered view that the Competent Authority may have a reasonable expectation from the complainant, i.e., he/she should make out a prima facie case, and subsequently, the Competent Authority should follow up the complaint to its logical conclusion. The Committee recommends that the Ministry may consider dealing with this aspect in the Bill.

11.29 The Committee unanimously feels that the Competent Authority should inform the complainant about the outcome of the complaint, since the complainant has a crucial role under the scheme in the statute. The Competent Authority should also give the reasons if the complaint is dismissed and further, the complainant should be given a reasonable hearing to present his case if he is not satisfied with the dismissal of his complaint/ outcome of the enquiry.

262 11.30 The Committee believes that the malady which presently affects the country’s system is not the absence of statutes, but rather their non-effective/lax implementation. The Committee is of the considered opinion that the relatively successful implementation of the Right to Information Act, 2005 is mainly due to the statutory provisions in it for furnishing information within the stipulated time limit and penalty for non- adherence to the same. In view of this, the Committee strongly feels that the Rules/Regulations under the Bill should provide for a reasonable time limit for conducting the discreet inquiry by the Competent Authority; for inquiry by the head of the organisation/office and for acting upon the recommendations made by the Competent Authority. The Rules/Regulations could further provide that if the time period has to be extended, it shall not go beyond a particular period stated therein and the Authority seeking extension of time should be required to record reasons in writing therefor.

11.31 The Committee feels that it is inevitable that the consequences of non-adherence to the recommendation made by the Competent Authority should be provided in the Bill. The Committee fails to understand how, in the absence of such a provision, the implementation of the Competent Authority's recommendations can be ensured. If the recommendations are not acted upon and kept in cold storage based on one lame excuse or another, the primary objective of the Bill i.e., tackling corruption will be vanquished. Moreover, the Committee feels that quick action on the recommendations of the Competent Authority will also have a deterrent effect on prospective wrong doers. The Committee, accordingly, recommends that Government should review their stand and put in place some mechanism in the Bill to ensure that the direction of the competent authority are not avoided to protect the wrong doers.

11.32 The Committee is of the opinion that since the Bill empowers the Competent Authority to recommend for initiation of criminal proceedings under the relevant laws and there is no limitation period under the existing criminal law for such proceedings, the Committee feels that the statutory time limit of 5 years should not be prescribed. The Committee is of the opinion that if at all a time limit has to be prescribed, it should be in consonance with the RTI Act and also the General Financial Rules - 2005. Further, limiting of complaints on events older than 5 years, merely on the ground that records beyond 5 years may not be available does not sound well. In Government, records are maintained as per retention schedule and important records are definitely kept for a longer period. The Committee is, accordingly, not convinced with this restriction of 5 years. The Committee is alternatively of the view that even if a time limit is to be prescribed in the statute, in case of complaints which prima facie reveal wrong doings of a grave nature , exceptions should be made.

11.33 The Committee believes that since the disclosure is made in the interest of the general public, the burden to ensure that the complainant is not subjected to any form/degree of victimization should be on the concerned organisation/Competent Authority. The Committee recommends that in order to ensure protection to the complainant from direct or indirect victimization, the Ministry should actively consider the suggestions detailed above and make necessary changes in the Bill.

11.34 The Committee also recommends that it should be provided in the Bill that witnesses/persons who support the whistleblower or help in the investigation/inquiry, should also be accorded the same protection against victimization as envisaged for the whistleblower, in the Bill.

11.35 The Committee takes note of the reply furnished by the Ministry on this issue. The Committee is deeply concerned to note that there are very high chances of non-compliance of orders given by Competent Authority under clause 10(1), in the absence of any provision to ensure enforcement of these orders. Therefore, the Committee strongly feels that the Ministry should chalk out an effective mechanism, preferably in the Bill itself, to ensure that the orders of the Competent Authority are complied with and in case of non-compliance, stringent action should be provided for against those responsible.

11.36 The Committee is of the unanimous view that the capacity of the State to provide for an effective mechanism for ensuring protection to the life, liberty and property of the complainant would be directly proportional to the degree of faith that the public would be willing to repose in the noble system envisaged in the Bill to promote accountability to the public. Therefore, the Committee feels that it is inevitable that the Government puts in place a flawless mechanism for the protection of the whistleblower in order to ensure effective implementation of this statute. Hence, the Committee desires the Ministry to consider the witnesses’ views given above and act upon them, to ensure that the mechanism for the protection of whistleblowers contemplated in the Bill is made foolproof.

263 11.37 The Committee was emphatic that the Ministry should seriously consider this matter. The Committee desires a mechanism be set up for this Bill to apply particularly in respect of Centrally funded schemes when the State level authorities fail to take suitable action. The Committee, however, hopes that all the States would adopt this Bill.

11.38 The Committee endorses the suggestions given above and recommends that the Ministry should give them due thought and deliberation, while finalizing the Bill.

11.39 While the Committee does not have much opposition against penalizing frivolous/ malafide complainants, it is certainly opposed to the quantum of punishment prescribed in the Bill. It will not only be a major deterrent for the prospective whistleblowers, but also increase the possibility of misuse of this provision, especially in cases where the accused is high and mighty and is able to influence the decision as to whether a complaint is frivolous/ malafide. The Committee, therefore, recommends that the penalty provided in clause 16 should be substantially reduced.

11.40 The Committee also feels that, merely because a complaint is not proved beyond reasonable doubt or a complaint is not found to be sustainable or a complaint is dismissed for other reasons, it should not be, termed as frivolous/ malafide. The Committee is of the considered opinion that while deciding whether a disclosure is frivolous/ malafide or not, the Competent Authority should exercise great amount of caution and give primary importance to the fact whether the complainant, while making the disclosure, had based his/ her action on the documents/ information in his possession/ knowledge. The focus should be on the intention and not the outcome of the enquiry. The Committee is of the view that such a dispensation will ensure that only those disclosures which have been made frivolously or with a malafide intentention meet with penalty under the Bill.

11.41 However, it appears to the Committee that the Bill is not clear as to who is competent and required to take action under Clause 16 of the Bill to impose penalty on the complaint. In the Committee’s view, a greater clarity is needed in this regard.

11.42 The Committee also recommends that in cases of punishment imposed under clause 16, the accused should be given right of appeal to the High Court so that he can place the facts before the Court to argue that he did not have any malafide 'intention' or that, at the time of making the disclosure, the complaint was based on the information he had at his disposal, at that point of time and that it was not frivolous.

11.43 Taking into cognizance the practical apprehensions raised by the stakeholders in this regard and the LCI recommendation, the Committee desires that the Ministry should reconsider the provisions of Clause 4(7) the Bill. Keeping in view the fact that the successful implementation of this statute mainly depends on the enforceability of the 'directions' made by the Competent Authority, diluting the 'directions' by making them merely 'recommendations' casts serious doubts on the feasibility of enforcing the 'recommendations' to the desired extent.

11.44 It was proposed that clauses 24(1), 25 and 26 of the Bill may be amended to require the Central Government as well as the State Government to make rules for carrying out the provisions of the Bill as per the procedure of prior publication contained in Section 23 of the General Clauses Act, 1897. The Committee recommends the Ministry to consider this suggestion.

11.45 The Committee takes note and favors the view placed before it, that the Short Title of the Bill may be worded better reflecting the real spirit of whistleblowing.

11.46 The Committee welcomes the Bill and broadly endorses its provisions. The Committee hopes that the Ministry will consider the concerns/suggestions mentioned above and make necessary changes in the Bill wherever found appropriate and possible.

11.47 The Committee in the end takes into account the fact that many more legislations like Lokpal Bill, The Judicial Standards and Accountability Bill etc. are in the offing, the main objectives of which are tackling of corruption and ensuring accountability. The Committee desires that the Government should exercise great care to ensure a holistic approach so that there is no conflict between these legislations and their implementation takes place in a harmonious manner. In any case, the other Bills should not militate against this Bill.

264 (c) 47th Report Report on the Judicial Standards and Accountability Bill, 2010:

11.48 The Committee takes note of the views placed before it by the witnesses. The Committee appreciates that this bill provides statutory backup to the Judicial Standards hitherto having sanction of the Restatement of Values as adopted in the Conference of Chief Justices in 1999. The Committee also appreciates that the Bill incorporates some new parameters essential to ensure judicial accountability. The Committee further observes that the Government should also consider the concerns of the witnesses raised before it. The Committee recommends that Government should remain alert and willing to update the judicial standards as and when required in future.

11.49 In this context, the Committee feels that there is a need to bring such behaviour of judges within the purview of the judicial standards. The Committee feels that Clause 3(2)(f) should be expanded by specifically mentioning that judges should restrain themselves from making unwarranted comments against other constitutional/statuary bodies/institutions/ persons in open court while hearing cases.

11.50 The Committee appreciates that the Bill makes the declaration of assets a statutory responsibility for the judges. The Committee also acknowledges that the clause is in consonance with the people's "right to know" and would facilitate greater transparency in judiciary. The Committee taking note of the suggestion that has come before it is of the view that the Government should include a mechanism to ensure that scrutiny of the declaration of assets is possible and implementable. Such a mechanism may involve any designated executive agency and can be made to report to either the Complaints Scrutiny Panel or the Oversight Committee.

11.51 The explanation of Department of Justice is not acceptable to the Committee. The Committee is of the opinion that Parliament's responsibility as a deciding authority in the impeachment process does not prohibit it having a role in the National Judicial Oversight Committee which is the very first stage where the fate of a complaint against a judge is to be decided. Further, in its opinion, the screening level is as important as the final stage, when impeachment process commences. It is therefore necessary to add a provision at section 18 (1)(f) enabling the Speaker of the Lok Sabha and the Chairman of the Rajya Sabha to nominate respectively one Member of Parliament from each House, having legal expertise and high standing in the legal arena to the Oversight Committee.

11.52 Having gone through the material placed before it, the views expressed by the experts and in-house discussion amongst the Members, the Committee strongly recommends for a broad based and independent National Judicial Oversight Committee. The Committee insists that all the three organs of the Government namely executive, judiciary and legislature have to be represented in that Committee. The Committee hopes that such a balanced body would ensure the independent and transparent functioning of the Committee and also brace people's faith in redressal of complaints against the erring judges. The expansion suggested in para 14.5 above should be read contextually into this paragraph also.

11.53 The Committee notes that under the present Bill, the complaint against a judge would be scrutinized by his colleagues only. Further, the CSP forms the pivot of the mechanism proposed in the Bill as it is only on the report on the CSP, the Oversight Committee will proceed or not proceed with the complaint. Also, the power to declare a complaint as frivolous or vexatious are vested in this panel.

11.54 The Committee feels that it would not be prudent to reserve the membership of CSP only for member of the judiciary merely in name of preserving judicial independence. Rather the principal of judicial independence needs to be balanced with the ideal of judicial accountability. The Committee, therefore, recommends that the Government should include the non-judicial members in the CSP so as to enhance the credibility of such an important body in the eyes of the people. Expansion of the CSP in the same manner as suggested in respect of the Oversight Committee in para 14.5 above may be considered.

11.55 The Committee is unhappy in so for as the provisions of the Bill relating to the constitution and composition of the Investigation Committee are concerned. The Committee is constrained to note that the Bill provides no guidelines for the Oversight Committee in the matter of the constitution of the Investigation Committee. The Committee impresses upon the Government to indicate the constitution of the Investigation

265 Committee in the Bill itself for the sake of objectivity and uniformity and to prevent uncertainty or the exercise of unnecessary discretion.

11.56 The Committee endorses the rationale of making a provision for punishment for making frivolous or vexatious complaints. The Committee, however, expresses its reservation over the prescribed quantum of the punishment both in terms of imprisonment which is up to 5 years and fine which is up to 5 lakh rupees. The severe punishment prescribed in the Bill may deter the prospective complainants from coming forward and defeat the very rationale of the Bill. In view of this, the Committee recommends that Government should substantially dilute the quantum of the punishment so as not to discourage people from taking initiatives against the misbehaviour of a judge. In any case it should not exceed the punishment provided under the Contempt of Court Act. The Government may also consider specifically providing in the Bill a proviso to protect those complainants from punishment/penalty who for some genuine reasons fail to prove their complaints.

11.57 As far as the present Bill is concerned, the Committee feels that the Bill deserves appreciation for prescribing an elaborate procedure for investigating into individual complaint for misbehavior or incapacity of judges. It also deserves appreciation as it empowers the common man to expose the misbehavior of judges. It is clearly an initiative in the right direction and endeavours to strike a reasonable balance between the demands of accountability and of judicial independence.

11.58 However, the Committee finds some shortcomings in the mechanism proposed in the Bill as pointed out in foregoing paras. Such shortcomings need to be rectified in order to enhance the efficacy of the Bill.

11.59 The Committee also unequivocally feels that the present Bill deals only partially with the problem and the main systematic lacunae remain unaddressed. The most significant lacuna relates to the present method of appointment of judges in the higher judiciary. The Committee is of the considered opinion that the present Bill is bound to end up with limited success because of the piecemeal nature of the proposed legislation, despite the genuineness of its objectives. The issue of judges' appointment therefore needs to be addressed comprehensively, though separately, at the earliest.

11.60 The Committee is of the view that the Government has to move beyond an incremental approach and give urgent and due thought to a holistic legislation encompassing the appointment process and other related matters to ensure judicial accountability for improved administration of justice.

(d) 48th Report

The Lokpal Bill, 2011.

11.61 In a nut shell, therefore, this Committee could become legally operational only w.e.f. September 23, 2011 and has completed hearing witnesses on 4th November, 2011. It had its total deliberations including Report adoption spread over 14 meetings, together aggregating 40 hours within the space of ten weeks commencing from September 23, 2011 and ending December 7, 2011.

11.62 Though not specific to this Committee, it is an established practice that all 24 Parliamentary Standing Committees automatically lapse on completion of their one year tenure and are freshly constituted thereafter. This results in a legal vacuum, each year, of approximately two to three weeks and occasionally, as in the present case, directly affects the urgent and ongoing business of the Committee. The Committee would respectfully request Parliament to reconsider the system of automatic lapsing. Instead, continuity in Committees but replacement of Members on party-wise basis would save time.

11.63 A proposal in this regard was first initiated in the Lok Sabha on April 3, 1963 by the Late Dr. LM Singhvi, MP2.. While replying to it, the then Law Minister observed that though the institution seemed full of possibilities, since it involved a matter of policy, it was for the Prime Minister to decide in that regard3.. Dr. LM Singhvi then personally communicated this idea to the then Prime Minister, Pandit Jawahar Lal Nehru who in turn, with some initial hesitation, acknowledged that it was a valuable idea which could be incorporated in our institutional framework. On 3rd November, 1963, Hon’ble Prime Minister made a statement in respect of the

2 Lok Sabha Debates dated 3rd April, 1963, vol. XVI, P.7556-7558 3 ibid., P.7590-92 266 possibilities of this institution and said that the system of Ombudsman fascinated him as the Ombudsman had an overall authority to deal with the charges of corruption, even against the Prime Minister, and commanded the respect and confidence of all4..

11.64 Thereafter, to give effect to the recommendations of the First Administrative Reforms Commission, eight Bills were introduced in the Lok Sabha from time to time. However, all these Bills lapsed consequent upon the dissolution of the respective Lok Sabhas, except in the case of the 1985 Bill which was subsequently withdrawn after its introduction. A close analysis of the Bills reflects that there have been varying approaches and shifting foci in scope and jurisdiction in all these proposed legislations. The first two Bills viz. of 1968 and of 1971 sought to cover the entire universe of bureaucrats, Ministers, public sector undertakings, Government controlled societies for acts and omissions relating to corruption, abuse of position, improper motives and mal- administration. The 1971 Bill, however, sought to exclude the Prime Minister from its coverage. The 1977 Bill broadly retained the same coverage except that corruption was subsequently sought to be defined in terms of IPC and Prevention of Corruption Act. Additionally, the 1977 Bill did not cover maladministration as a separate category, as also the definition of “public man” against whom complaints could be filed did not include bureaucrats in general. Thus, while the first two Bills sought to cover grievance redressal in respect of maladministration in addition to corruption, the 1977 version did not seek to cover the former and restricted itself to abuse of office and corruption by Ministers and Members of Parliament. The 1977 Bill covered the Council of Ministers without specific exclusion of the Prime Minister.

11.65 The 1985 Bill was purely focused on corruption as defined in IPC and POCA and neither sought to subsume mal-administration or mis-conduct generally nor bureaucrats within its ambit. Moreover, the 1985 Bill impliedly included the Prime Minister since it referred to the office of a Minister in its definition of “public functionary”.

11.66 The 1989 Bill restricted itself only to corruption, but corruption only as specified in the POCA and did not mention IPC. It specifically sought to include the Prime Minister, both former and incumbent.

Lastly, the last three versions of the Bill in 1996, 1998 and 2001, all largely; (a) focused only on corruption; (b) defined corruption only in terms of POCA; (c) defined “public functionaries” to include Prime Minister, Ministers and MPs; (d) did not include bureaucrats within their ambit. [Para 3.5]

11.67. Though the institution of Lokpal is yet to become a reality at the Central level, similar institutions of Lokayuktas have in fact been setup and are functioning for many years in several States. In some of the States, the institution of Lokayuktas was set up as early as in 1970s, the first being Maharashtra in 1972. Thereafter, State enactments were enacted in the years 1981 (M.P.), 1983 (Andhra Pradesh and Himachal Pradesh), 1984 (Karnataka), 1985 (Assam), 1986 (Gujarat), 1995 (Delhi), 1999 (Kerala), 2001 (Jharkhand), 2002 (Chhatisgarh) and 2003 (Haryana). At present, Lokayuktas are in place in 17 States and one Union Territory. However, due to the difference in structure, scope and jurisdiction, the effectiveness of the State Lokayuktas vary from State to State. It is noteworthy that some States like Gujarat, Karnataka, Bihar, Rajasthan and Andhra Pradesh have made provisions in their respective State Lokayuktas Act for suo motu investigation by the Lokpal. In the State Lokayukta Acts of some States, the Lokayukta has been given the power for prosecution and also power to ensure compliance of its recommendations. However, there is a significant difference in the nature of provisions of State Acts and in powers from State to State. Approximately nine States in India have no Lokayukta at

4 His initial hesitation to this idea was probably due to the Scandinavian origin of the nomenclature of the institution. In a lighter vein, he happened to ask Dr. L.M. Singhvi “To what zoo does this animal belong” and asked Shri Singhvi to indigenize the nomenclature of the institution. Dr. L.M. Singhvi then coined the term Lokpal / Lokayukta to modify the institution of Ombudsman to the Indian context (as related by Dr. L.M. Singhvi to the Chairman of this Committee). Also referred to by Mr. Arun Jaitley M.P. during the Parliament Debate on 27th August 2011. He started the debate in the Upper House thus:-“Now, ‘Ombudsman’ was a Scandinavian concept and, coincidentally, on 3rd April, 1963, then an Independent young Member of the Lok Sabha, Dr. L.M. Singhvi, in the course of his participation in a debate for having an Ombudsman in India, attempted to find out what the Indian equivalent could be, and this word ‘Lokpal’ was added to our vocabulary, the Hindi vocabulary, by Dr. L.M. Singhvi who translated this word.” 267 present. Of the States which have an enactment, four States have no actual appointee in place for periods varying from two months to eight years.

11.68 The Committee believes that while providing for a comprehensive Grievance Redressal Mechanism is absolutely critical, it is equally imperative that this mechanism be placed in a separate framework which ensures speed, efficiency and focus in dealing with citizens' grievances as per a specified Citizens' Charter. The humongous number of administrative complaints and grievance redressal requests would critically and possibly fatally jeopardize the very existence of a Lokpal supposed to battle corruption. At the least, it would severally impair its functioning and efficiency. Qualitatively, corruption and mal-administration fall into reasonably distinct watertight and largely non-overlapping, mutually exclusive compartments. The approach to tackling such two essentially distinct issues must necessarily vary in content, manpower, logistics and structure. The fact that this Committee recommends that there must be a separate efficacious mechanism to deal with Grievance Redressal and Citizens' Charter in a comprehensive legislation other than the Lokpal Bill does not devalue or undermine the vital importance of that subject.

11.69 Consequently the Committee strongly recommends the creation of a separate comprehensive enactment on this subject and such a Bill, if moved through the Personnel/Law Ministry and if referred to this Standing Committee, would receive the urgent attention of this Committee. Indeed, this Committee, in its 29th Report on “Public Grievance Redressal Mechanism”, presented to Parliament in October, 2008 had specifically recommended the enactment of such a mechanism.

11.70 To emphasize the importance of the subject of Citizens' Charter and to impart it the necessary weight and momentum, the Committee is of the considered opinion that any proposed legislation on the subject: (i) should be urgently undertaken and be comprehensive and all inclusive; (ii) such enactment should, subject to Constitutional validity, also be applicable for all States as well in one uniform legislation; (iii) must provide for adequate facilities for proper guidance of the citizens on the procedural and other requirements while making requests. (iv) must provide for acknowledgement of citizen’s communications within a fixed time frame; (v) must provide for response within stipulated time frame; (vi) must provide for prevention of spurious or lame queries from the department concerned to illegally/unjustifiably prolong/extend the time limit for response; (vii) must provide for clearly identifiable name tags for each employee of different Government departments; (viii) must provide for all pending grievances to be categorized subject-wise and notified on a continually updated website for each department; (ix) must provide for a facilitative set of procedures and formats, both for complaints and for appeals on this subject - along the lines of the Information Commissioners system set up under the RTI; (x) must, in the event that the proposed Central law does not cover states, make strong recommendations to have similar enactments for grievance redressal/citizen charter at each State level; (xi) may provide for exclusionary or limited clauses in the legislation to the effect that Citizen Charter should not include services involving constraints of supply e.g. power, water, etc. but should include subjects where there is no constraint involved e.g. birth certificates, decisions, assessment orders. These two are qualitatively different categories and reflect an important and reasonable distinction deserving recognition without which Government departments will be burdened with the legal obligation to perform and provide services or products in areas beyond their control and suffering from scarcity of supply.

11.71 The Committee strongly feels that the harmonious synchronization of the RTI Act and of the Citizens' Charter and Public Grievances Redressal Mechanism will ensure greater transparency and accountability in governance and enhance the responsiveness of the system to the citizens' needs/expectations/grievances.

11.72 Lastly, the Committee wishes to clarify that the conclusion of the Hon’ble Union Minister for Finance on the Floor of the House quoted in Para 1.8 above of the Report does not intend to direct or mandate or bind or oblige this Committee to provide for a Citizen’s Charter within the present Lokpal Bill alone. The Committee

268 reads the quoted portion in para 1.8 above to mean and agree in principle to provide for a Citizen’s Charter/Grievance Redressal system but not necessarily and inexorably in the same Lokpal Bill. Secondly, the reference to ‘appropriate mechanism’ in para 1.8 above further makes it clear that there must be a mechanism dealing with the subject but does not require it to be in the same Lokpal Bill alone. Thirdly, the reference in para 1.8 above to the phrase ‘under Lokpal’ is not read by the Committee to mean that such a mechanism must exist only within the present Lokpal Bill. The Committee reads this to mean that there should be an appropriate institution to deal with the subject of Citizen’s Charter/Grievance redressal which would be akin to the Lokpal and have its features of independence and efficacy, but not that it need not be the very same institution i.e. present Lokpal. Lastly, the Committee also takes note of the detailed debate and divergent views of those who spoke on the Floor of both Lok Sabha and Rajya Sabha on this issue and concludes that no binding consensus or resolution to the effect that the Grievances Redressal/Citizen’s Charter mechanism must be provided in the same institution in the present Lokpal Bill, has emerged.

11.73 Contextually, the issues and some of the suggestions in this Chapter may overlap with and should, therefore, be read in conjunction with Chapter 13 of this report. Though the Committee has already opined that the issue of grievance redressal should be dealt with in a separate legislation, the Committee hereby also strongly recommends that there should be a similar declaration either in the same Chapter of the Lokpal or in a separate Chapter proposed to be added in the Indian Constitution, giving the same constitutional status to the citizens grievances and redressal machinery.

11.74 This recommendation to provide the proposed Citizen Charter and Grievances Redressal Machinery the same Constitutional status as the Lokpal also reflects the genuine and deep concern of this Committee about the need, urgency, status and importance of a citizen's charter/grievance machinery. The Committee believes that the giving of the aforesaid constitutional status to this machinery would go a long way in enhancing its efficacy and in providing a healing touch to the common man. Conclusions and recommendations in this regard made in para 13.12 (j) and (k) should be read in conjunction herein.

11.75 Furthermore, the Committee believes that this recommendation herein is also fully consistent with the letter and spirit of para 1.8 above viz. the conclusions of the Minister of Finance in the Lower House recorded in para 1.8 above.

11.76 The issue of the Prime Minister's inclusion or exclusion or partial inclusion or partial exclusion has been the subject of much debate in the Committee. Indeed, this has occupied the Committee’s deliberations for at least three different meetings. Broadly, the models / options which emerged are as follows: (a) The Prime Minister should be altogether excluded, without exception and without qualification. (b) The Prime Minister should altogether be included, without exception and without qualification ( though this view appears to be that of only one or two Members). (c) The Prime Minister should be fully included, with no exclusionary caveats but he should be liable to action / prosecution only after demitting office. (d) The Prime Minister should be included, with subject matter exclusions like national security, foreign affairs, atomic energy and space. Some variants and additions suggested included the addition of “national interest” and “public order” to this list of subject matter exclusions. (e) One learned Member also suggested that the Prime Minister be included but subject to the safeguard that the green signal for his prosecution must be first obtained from either both Houses of Parliament in a joint sitting or some variation thereof.

11.77 It may be added that so far as the deferred prosecution model is concerned, the view was that if that model is adopted, there should be additional provisions limiting such deferment to one term of the Prime Minister only and not giving the Prime Minister the same benefit of deferred prosecution in case the Prime Minister is re-elected.

11.78 In a nut shell, as far as the overwhelming number of Members of the Committee are concerned, it was only three models above viz. as specified in paras (a), (c) and (d) in para 5.17 above which were seriously proposed.

269 11.79 Since the Committee finds that each of the views as specified in paras (a), (c) and (d) in para 5.17 above had reasonably broad and diverse support without going into the figures for or against or into the names of individual Members, the Committee believes that, in fairness, all these three options be transmitted by the Committee as options suggested by the Committee, leaving it to the good sense of Parliament to decide as to which option is to be adopted.

11.80 It would be, therefore, pointless in debating the diverse arguments in respect of each option or against each option. In fairness, each of the above options has a reasonable zone of merit as also some areas of demerit. The Committee believes that the wisdom of Parliament in this respect should be deferred to and the Committee, therefore, so opines.

11.81 The Committee strongly feels that constitutional safeguards given to MPs under Article 105 are sacrosanct and time-tested and in view of the near unanimity in the Committee and among political parties on their retention, there is no scope for interfering with these provisions of the Constitution. Vote, conduct or speech within the House is intended to promote independent thought and action, without fetters, within Parliament. Its origin, lineage and continuance is ancient and time-tested. Even an investigation as to whether vote, speech or conduct in a particular case involves or does not involve corrupt practices, would whittle such unfettered autonomy and independence within the Houses of Parliament down to vanishing point. Such immunity for vote, speech or conduct within the Houses of Parliament does not in any manner leave culpable MPs blameless or free from sanction. They are liable to and, have, in the recent past, suffered severe parliamentary punishment including expulsion from the Houses of Parliament, for alleged taking of bribes amounting to as little as Rs. 10,000/- for asking questions on the floor of the House. It is only external policing of speech, vote or conduct within the House that Article 105 frowns upon. It leaves such speech, vote and conduct not only subject to severe intra-parliamentary scrutiny and action, but also does not seek to affect corrupt practices or any other vote, speech or conduct outside Parliament. There is absolute clarity and continued unanimity on the necessity for this limited immunity to be retained. Hence, speculation on constitutional amendment in this regard is futile and engenders interminable delay.

11.82 Consequently, the existing structure, mechanism, text and context of clauses 17 (1) (c) and 17 (2) in the Lokpal Bill 2011 should be retained.

11.83 The Committee finds merit in the suggestion for a single comprehensive federal enactment dealing with Lokpal and State Lokayuktas. The availability of uniform standards across the country is desirable; the prosecution of public servants based upon widely divergent standards in neighboring states is an obvious anomaly. The Committee has given its earnest attention to the constitutional validity of a single enactment subsuming both the Lokpal and Lokayukta and concludes that such an enactment would be not only desirable but constitutionally valid, inter alia because, (a) The legislation seeks to implement the UN Convention on Corruption ratified by India. (b) Such implementing legislation is recognized by Article 253 and is treated as one in List III of the 7th Schedule. (c) It gets additional legislative competence, inter-alia, individually or jointly under Entries 1, 2 and 11A of List-III. (d) A direct example of provision for National Human Rights Commission and also for State Human Rights Commissions in the same Act is provided in the Protection of the Human Rights Act 1986 seeking to implement the UN Convention for the Protection of Human Rights. (e) Such Parliamentary legislation under Article 253, if enacted, can provide for repealing of State Lokayukta Acts; subject, however, to the power of any State to make State specific amendments to the federal enactments after securing Presidential assent for such State specific amendments.[Para 7.26]

11.84 Additionally, it is recommended that the content of the provisions dealing with State Lokayuktas in the proposed central/ federal enactment must be covered under a separate chapter in the Lokpal Bill. That may be included in one or more chapters possibly after Chapter II and before Chapter III as found in the Lokpal Bill 2011. The entire Lokpal Bill 2011 would have to incorporate necessary changes and additions, mutatis mutandis, in respect of the State Lokayukta institutions. To give one out of many examples, the Selection

270 Committee would be comprised of the State Chief Minister, the Speaker of the Lower House of the State, the Leader of Opposition in the Lower House, the Chief Justice of the High Court and a joint nominee of the State Election Commissioner, the State Auditor General and State PSC Chairman or, where one or more of such institutions is absent in the State, a joint nominee of comparable institutions having statutory status within the State.

11.85 All these State enactments shall include the Chief Minister within their purview. The Committee believes that the position of the State Chief Minister is not identical to that of the Prime Minister. The arguments for preventing instability and those relating to national security or the image of the country do not apply in case of a Chief Minister. Finally, while Article 356 is available to prevent a vacuum for the post of Chief Minister, there is no counterpart constitutional provision in respect of the federal Government.

11.86 Article 51 (c) of the Directive Principles of State Policy enjoining the federation to “foster respect for international law and treaty obligations……………..” must also be kept in mind while dealing with implementing legislations pursuant to international treaties, thus providing an additional validating basis for a single enactment.

11.87 The Committee recommends that the Lokpal Bill 2011 may be expanded to include several substantive provisions which would be applicable for Lokayuktas in each State to deal with issues of corruption of functionaries under the State Government and employees of those organizations controlled by the State Government, but that, unlike the Lokpal, the state Lokayuktas would cover all classes of employees.

11.88 The Committee recommends that if the above recommendation is implemented the Lokpal Bill, 2011 may be renamed as “Lokpal and Lokayuktas Bill, 2011”.

11.89 The Committee believes that the recommendations, made herein, are fully consistent with and implement, in letter and spirit, the conclusions of the Minister of Finance on the floor of the Houses in respect of establishment of Lokayuktas in the States, as quoted in para 1.8 above. The Committee is conscious of the fact that the few States which have responded to the Secretariat’s letter sent to each and every State seeking to elicit their views, have opposed a uniform Central federal Lokpal and Lokayukta Bill and, understandably and expectedly, have sought to retain their powers to enact State level Lokayukta Acts. The Committee repeats and reiterates the reasons given hereinabove, in support of the desirability of one uniform enactment for both Lokpal and Lokayuktas. The Committee also reminds itself that if such a uniform Central enactment is passed, it would not preclude States from making any number of State specific amendments, subject to prior Presidential assent, as provided in the Indian Constitution. The Committee, therefore, believes that it has rightly addressed the two issues which arise in this respect viz. the need and desirability for a uniform single enactment and, secondly, if the latter is answered in the affirmative, that such a uniform enactment is Constitutionally valid and permissible.

11.90 Since this report, and especially this chapter, recommends the creation of a uniform enactment for both Central and State Lokayuktas, it is reiterated that a whole separate chapter (or, indeed, more than one chapter) would have to be inserted in the Lokpal Bill of 2011 providing for State specific issues. Secondly, this would have to be coupled with mutatis mutandis changes in other parts of the Act to accommodate the fact that the same Act is addressing the requirement of both the federal institution and also the State level institution.

11.91 Furthermore, each and every chapter and set of recommendations in this report should also be made applicable, mutatis mutandis, by appropriate provisions in the Chapter dealing with State Lokayuktas.

11.92 Although it is not possible for this Committee to specifically list the particularised version of each and every amendment or adaptation required to the Lokpal Bill, 2011 to subsume State Lokayuktas within the same enactment, it gives below a representative non-exhaustive list of such amendments/adaptations, which the Government should suitably implement in the context of one uniform enactment for both Lokpal and Lokayuktas. These include: (a) Clause 1 (2) should be retained even for the State Lokayukta provisions since State level officers could well be serving in parts of India other than the State concerned as also beyond the shores of India. (b) The Chief Minister must be included within the State Lokayukta on the same basis as any other Minister of the Council of Ministers at the State level. Clause 2 of the 2011 Bill must be 271 amended to include Government servants at the State level. The competent authority in each case would also accordingly change e.g. for a Minister of the Council of Minister, it would be the Chief Minister; for MLAs, it would be the presiding officer of the respective House and so on and so forth. The competent authority for the Chief Minister would be the Governor. (c) As regards Clause 3, the only change would be in respect of the Chairperson, which should be as per the recommendation made for the Lokpal. (d) As regards the Selection Committee, the issue at the Lokayukta level has already been addressed above. (e) References in the Lokpal context to the President of India shall naturally have to be substituted at the Lokayukta level by references to the Governor of the State. (f) The demarcation of the criminal justice process into five broad areas from the initiation of complaint till its adjudication, as provided in Chapter 12, should also apply at the State Lokayukta level. The investigative agency, like the CBI, shall be the anti-corruption unit of the State but crucially, it shall be statutorily made independent by similar declarations of independence as already elaborated in the discussion in Chapter 12. All other recommendations in Chapter 12 can and should be applied mutatis mutandis for the Lokayukta. (g) Similarly, all the recommendations in Chapter 12 in respect of departmental inquiry shall apply to the Lokayukta with changes made, mutatis mutandis, in respect of State bodies. The State Vigilance Commission/machinery would, in such cases, discharge the functions of the CVC. However, wherever wanting, similar provisions as found in the CVC Act buttressing the independence of the CVC shall be provided. (h) The recommendations made in respect of elimination of sanction as also the other recommendations, especially in Chapter 12, relating to Lokpal, can and should be applied mutatis mutandis in respect of Lokayukta. (i) Although no concrete fact situation exists in respect of a genuine multi-State or inter-State corruption issue, the Committee opines that in the rare and unusual case where the same person is sought to be prosecuted by two or more State machineries of two or more Lokayuktas, there should be a provision entitling the matter to be referred by either of the States or by the accused to the Lokpal at the federal level, to ensure uniformity and to eliminate turf wars between States or jurisdictional skirmishes by the accused. (j) As already stated above, the coverage of the State Lokayukta, unlike the Lokpal, would extend to all classes of employees, including employees of state owned or controlled entities.

11.93 The Committee, therefore, recommends: (a) That for the Lokpal at the federal level, the coverage should be expanded to include Group A and Group B officers but not to include Group C and Group D. (b) The provisions for the State Lokayuktas should contain similar counterpart reference, for purposes of coverage, of all similar categories at the State level which are the same or equivalent to Group A and Group B for the federal Lokpal. Though the Committee was tempted to provide only for enabling power for the States to include the State Lokayuktas to include the lower levels of bureaucracy like groups ‘C’ and ‘D’ at the State level, the Committee, on careful consideration, recommends that all the groups, including the lower bureaucracy at the State level and the groups equivalent with ‘C’ and ‘D’ at the State level should also be included within the jurisdiction of State Lokayuktas with no exclusion. Employees of state owned or controlled entities should also be covered. (c) The Committee is informed by the DoPT that after the Sixth Pay Commission Report, Group- D has been/will be transposed and sub-merged fully in Group-C. In other words, after the implementation of the Sixth Pay Commission Report, which is already under implementation, Group-D will disappear and there will be only Group-C as far as the Central Government employees are concerned.

272 (i) Consequently, Group-C, which will shortly include the whole of Group-D will comprise a total number of approximately 30 lakhs (3 million) employees. Though the figures are not fully updated, A+B classes recommended for inclusion by this Committee would comprise just under 3 lakhs employees. With some degree of approximation, the number of Railway employees from group A to D inclusive can be pegged at about 13½ lakhs (as on March 2010). If Central Government PSUs are added, personnel across all categories (Group A, B, C and D as existing) would be approximately an additional 15 lakhs employees. Post and Telegraph across all categories would further number approximately 4½ lakhs employees. Hence the total, on the aforesaid basis (which is undoubtedly an approximation and a 2010 figure) for Group A to D (soon, as explained above, to be only Group-C) + Railways + Central PSUs + Post and Telegraph would be approximately 63 lakhs, or at 2011 estimates, let us assume 65 lakhs i.e. 6.5 million. (ii) On a conservative estimate of one policing officer per 200 employees (a ratio propounded by several witnesses including Team Anna), approximately 35000 employees would be required in the Lokpal to police the aforesaid group of Central Government employees (including, as explained above, Railways, Central PSUs, P&T etc.). This policing is certainly not possible by the proposed nine member Lokpal. The Lokpal would have to spawn a bureaucracy of at least 35000 personnel who would, in turn, be recruited for a parallel Lokpal bureaucracy. Such a mammoth bureaucracy, till it is created, would render the Lokpal unworkable. Even after it is created, it may lead to a huge parallel bureaucracy which would set in train its own set of consequences, including arbitrariness, harassment and unfair and illegal action by the same bureaucracy which, in the ultimate analysis would be nothing but a set of similar employees cutting across the same A, B and C categories. As some of the Members of the Committee, in a lighter vein put it, one would then have to initiate a debate on creating a super Lokpal or a Dharampal for the policing of the new bureaucracy of the Lokpal institution itself. (iii) The Committee also notes that as far as the Lokpal institution is concerned, it is proposed as a new body and there is no such preexisting Lokpal bureaucracy available. In this respect, there is a fundamental difference between the Lokpal and Lokayuktas, the latter having functioned, in one form or the other in India for the last several decades, with a readily available structure and manpower in most parts of India. (iv) If, from the above approximate figure of 65 lakhs, we exclude C and D categories (as explained earlier, D will soon become part of C) from Central Government, Railways, PSUs, Post and Telegraph etc., the number of A and B categories employees in these departments would aggregate approximately 7.75 lakhs. In other words, the aggregate of C and D employees in these classes aggregate approximately 57 or 58 lakhs. The Committee believes that this figure of 7.75 or 8 lakhs would be a more manageable, workable and desirable figure for the Lokpal institution, at least to start with. (v) The impression that inclusion of Group ‘A’ and B alone involves exclusion of large sections of the bureaucracy, must be dispelled. Though in terms of number, the aggregation of Groups ‘C’ and ‘D’ is an overwhelming percentage of total Central Government employees, Groups ‘A’ and B include the entire class above the supervisory level. Effectively, this means that virtually all Central Government employees at the Section Officer level and above would be included. It is vital to emphasize that this demarcation has to be viewed in functional terms, since it gives such categories significant decision making power in contra-distinction to mere numbers and necessarily subsumes a major chunk of medium and big ticket corruption. (vi) Another misconception needs to be clarified. There is understandable and justifiable anger that inclusion of Group C and D would mean exclusion of a particular class which has tormented the common man in different ways over the years viz. Tehsildar, Patwari and similarly named or equivalent officers. Upon checking, the 273 Secretariat has clarified that these posts are State Government posts under gazette notification notified by the State Government and hence the earlier recommendation of this Committee will enable their full inclusion. (vii) We further recommend that for the hybrid category of Union Territories, the same power be given as is recommended above in respect of State Lokayuktas. The Committee also believes that this is the appropriate approach since a top heavy approach should be avoided and the inclusionary ambit should be larger and higher at the state level rather than burdening the Lokpal with all classes of employees. (viii) As of now, prior to the coming into force of the Lokpal Act or any of the recommendations of this report, Group C and D officers are not dealt with by the CVC. Group C & D employees have to be proceeded against departmentally by the appropriate Department Head, who may either conduct a departmental enquiry or file a criminal corruption complaint against the relevant employee through the CBI and/or the normal Police forces. The Committee now recommends that the entire Group C & D, (later only Group C as explained above) shall be brought specifically under the jurisdiction of the CVC. In other words, the CVC, which is a high statutory body of repute and whose selection process includes the Leader of the Opposition, should be made to exercise powers identical to or at least largely analogous, in respect of these class C and class D employees as the Lokpal does for Group A and B employees. The ultimate Lokpal Bill/Act should thus become a model for the CVC, in so far as Group C & D employees are concerned. If that requires large scale changes in the CVC Act, the same should be carried out. This would considerably strengthen the existing regime of policing, both departmentally and in terms of anti- corruption criminal prosecutions, all Group C & D employees and would not in any manner leave them either unpoliced or subject to a lax or ineffective regime of policing. (ix) Furthermore, this Committee recommends that there would be broad supervisory fusion at the apex level by some appropriate changes in the CVC Act. The CVC should be made to file periodical reports, say every three months, to the Lokpal in respect of action taken for these class C and D categories. On these reports, the Lokpal shall be entitled to make comments and suggestions for improvement and strengthening the functioning of CVC, which in turn, shall file, appropriate action taken reports with the Lokpal. (x) Appropriate increase in the strength of the CVC manpower, in the light of the foregoing recommendations, would also have to be considered by the Government. (xi) The Committee also feels that this is the start of the Lokpal institution and it should not be dogmatic and inflexible on any of the issues. For a swift and efficient start, the Lokpal should be kept slim, trim, effective and swift. However, after sometime, once the Lokpal institution has stabilized and taken root, the issue of possible inclusion of Group C classes also within the Lokpal may be considered. This phase-wise flexible and calibrated approach would, in the opinion of this Committee, be more desirable instead of any blanket inclusion of all classes at this stage. (xii) Another consideration which the Committee has kept in mind is the fact that if all the classes of higher, middle and lower bureaucracy are included within the Lokpal at the first instance itself, in addition to all the aforesaid reasons, the CVC’s role and functioning would virtually cease altogether, since the CVC would have no role in respect of any class of employee and would be reduced, at best, to a vigilance clearance authority. This would be undesirable in the very first phase of reforms, especially since the CVC is a high statutory authority in this country which has, over the last half century, acquired a certain institutional identity and stability along with conventions and practices which ought not to be uprooted in this manner. (d) All provisions for prior sanction / prior permission, whether under the CrPC or Prevention of Corruption Act or DSPE Act or related legislation must be repealed in respect of all categories of bureaucrats / government servants, whether covered by the Lokpal or not, and there should consequently be no requirement of sanction of any kind in respect of any class or category of

274 officers at any level in any Lokpal and Lokayukta or , indeed, CVC proceedings ( for non Lokpal covered categories). In other words, the requirement of sanction must go not only for Lokpal covered personnel but also for non-Lokpal covered personnel i.e. class ‘C’ and ‘D’ (Class D, as explained elsewhere, will eventually be submerged into Class ‘C’). The sanction requirement, originating as a salutary safeguard against witch hunting has, over the years, as applied by the bureaucracy itself, degenerated into a refuge for the guilty, engendering either endless delay or obstructing all meaningful action. Moreover, the strong filtering mechanism at the stage of preliminary inquiry proposed in respect of the Lokpal, is a more than adequate safeguard, substituting effectively for the sanction requirement. (e) No doubt corruption at all levels is reprehensible and no doubt corruption at the lowest levels does affect the common man and inflicts pain and injury upon him but the Committee, on deep consideration and reconsideration of this issue, concluded that this new initiative is intended to send a clear and unequivocal message, first and foremost, in respect of medium and big ticket corruption. Secondly, this Committee is not oblivious to the fact that jurisdiction to cover the smallest Government functionary at the peon and driver level ( class C largely covers peons, assistants, drivers, and so on, though it does also cover some other more "powerful" posts) may well provide an excuse and a pretext to divert the focus from combating medium and big ticket corruption to merely catching the smaller fry and building up an impressive array of statistical prosecutions and convictions without really being able to root out the true malaise of medium and big ticket corruption which has largely escaped scrutiny and punishment over the last 60 years. (f) The Committee also believes that the recommendations in respect of scope of coverage of the lower bureaucracy, made herein, are fully consistent with the conclusions of the Minister of Finance on the floor of the Houses, as quoted in para 1.8 above of this Report. Firstly, the lower bureaucracy has been, partly, brought within the coverage as per the recommendations above and is, thus, consistent with the essence of the conclusion contained in para 1.8 above. Secondly, the Committee does not read para 1.8 above to meet an inevitable and inexorable mandate to necessarily subsume each and every group of civil servant (like Group ‘C’ or Group ‘D’, etc.). Thirdly, the in principle consensus reflected in para 1.8 would be properly, and in true letter and spirit, be implemented in regard to the recommendations in the present Chapter for scope and coverage of Lokpal presently. Lastly, it must be kept in mind that several other recommendations in this Report have suggested substantial improvements and strengthening of the provisions relating to policing of other categories of personnel like C and D, inter alia, by the CVC and/or to the extent relevant, to be dealt with as Citizens’ Charter and Grievance Redressal issues.

11.94 It cannot be gainsaid that after the enormous productive effort put in by the entire nation over the last few months for the creation of a new initiative like the Lokpal Bill, it would not and cannot be assumed to be anyone's intention to create a remedy virtually impossible to activate, or worse in consequence than the disease. The Committee, therefore, starts with the basic principle that it must harmoniously balance the legitimate but competing demands of prevention of false, frivolous complaints on the one hand as also the clear necessity of ensuring that no preclusive bar arises which would act as a deterrent for genuine and bona fide complaints.

11.95 The Committee sees the existing provisions in this regard as disproportionate, to the point of being a deterrent.

11.96 The Committee finds a convenient analogous solution and therefore adopts the model which the same Committee has adopted in its recently submitted report on Judicial Standards and Accountability Bill, 2010 presented to the Rajya Sabha on August 30, 2011.

11.97 In para 18.8 of the aforesaid Report, the Committee, in the context of Judicial Standards and Accountability Bill, 2010 said : "The Committee endorses the rationale of making a provision for punishment for making frivolous or vexatious complaints. The Committee, however, expresses its reservation over the prescribed quantum of punishment both in terms of imprisonment which is up to 5 years and fine which is up to 5 lakh rupees. The severe punishment prescribed in the Bill may deter the prospective complainants from coming forward and defeat the very rationale of the Bill. In view of this, the Committee recommends that

275 Government should substantially dilute the quantum of the punishment so as not to discourage people from taking initiatives against the misbehaviour of a judge. In any case, it should not exceed the punishment provided under the Contempt of Court Act. The Government may also consider specifically providing in the Bill a proviso to protect those complainants from punishment / penalty who for some genuine reasons fail to prove their complaints. The Committee, accordingly, recommends that the Bill should specifically provide for protection in case of complaints made 'in good faith' in line with the defence of good faith available under the Indian Penal Code."

11.98 Consequently, in respect of the Lokpal Bill, the Committee recommends that, in respect of false and frivolous complaints : (a) The punishment should include simple imprisonment not exceeding six months; (b) The fine should not exceed Rs.25000; and (c) The Bill should specifically provide for protection in case of complaints made in good faith in line with the defence of good faith available under the Indian Penal Code under Section 52 IPC.

11.99 The Committee recommends: (i) The Judiciary, comprising 31 odd judges of the Apex Court, 800 odd judges of the High Courts, and 20,000 odd judges of the subordinate judiciary are a part of a separate and distinct organ of the State. Such separation of judicial power is vitally necessary for an independent judiciary in any system and has been recognized specifically in Article 50 of the Indian Constitution. It is interesting that while the British Parliamentary democratic system, which India adopted, has never followed the absolute separation of powers doctrine between the Legislature and the Executive, as, for example, found in the US system, India has specifically mandated under its Constitution itself that such separation must necessarily be maintained between the Executive and the Legislature on the one hand and the Judiciary on the other. (ii) Such separation, autonomy and necessary isolation is vital for ensuring an independent judicial system. India is justifiably proud of a vigorous (indeed sometimes over vigorous) adjudicatory judicial organ. Subjecting that organ to the normal process of criminal prosecution or punishment through the normal courts of the land would not be conducive to the preservation of judicial independence in the long run. (iii) If the Judiciary were included simpliciter as suggested in certain quarters, the end result would be the possible and potential direct prosecution of even an apex Court Judge before the relevant magistrate exercising the relevant jurisdiction. The same would apply to High Court Judges. This would lead to an extraordinarily piquant and an untenable situation and would undermine judicial independence at its very root. (iv) Not including the Judiciary under the present Lokpal dispensation does not in any manner mean that this organ should be left unpoliced in respect of corruption issues. This Committee has already proposed and recommended a comprehensive Judicial Standards and Accountability Bill which provides a complete in-house departmental mechanism, to deal with errant judicial behavior by way of censure, warning, suspension, recommendation or removal and so on within the judicial fold itself. The Committee deprecates the criticism of the Judicial Standards and Accountability Bill as excluding issues of corruption for the simple reason that they were never intended to be addressed by that Bill and were consciously excluded. (v) As stated in para 21 of the report of this Committee on the Judicial Standards and Accountability Bill, to this report, the Committee again recommends, in the present context of the Lokpal Bill, that the entire appointment process of the higher judiciary needs to be revamped and reformed. The appointment process cannot be allowed and should not be allowed to continue in the hands of a self-appointed common law mechanism created by judicial order operating since the early 1990s. A National Judicial Commission must be set up to create a broad-based and comprehensive model for judicial appointments, including, if necessary, by way of amendment of Articles 124 and 217 of the Indian Constitution. Without such a fundamental revamp of the appointment process at source and at the inception, all

276 other measures remain purely ex-post facto and curative. Preventive measures to ensure high quality judicial recruitment at the entrance point is vital. (vi) It is the same National Judicial Commission which has to be entrusted with powers of both transfer and criminal prosecution of judges for corruption. If desired, by amending the provisions of the Constitution as they stand today, such proposed National Judicial Commission may also be given the power of dismissal / removal. In any event, this mechanism of the National Judicial Commission is essential since it would obviate allegations and challenges to the validity of any enactment dealing with judges on the ground of erosion or impairment of judicial independence. Such judicial independence has been held to be part of the basic structure of the Indian Constitution and is therefore unamendable even by way of an amendment of the Indian Constitution. It is for this reason that while this Committee is very categorically and strongly of the view that there should be a comprehensive mechanism for dealing with the trinity of judicial appointments, judicial transfers and criminal prosecution of judges, it is resisting the temptation of including them in the present Lokpal Bill. The Committee, however, exhorts the appropriate departments, with all the power at its command, to expeditiously bring a Constitutional Amendment Bill to address the aforesaid trinity of core issues directly impinging on the judicial system today viz. appointment of high quality and high caliber judges at the inception, non-discriminatory and effective transfers and fair and vigorous criminal prosecution of corrupt judges without impairing or affecting judicial independence. (vii) The Committee finds no reason to exclude from the conclusions on this subject, the burgeoning number of quasi-judicial authorities including tribunals as also other statutory and non-statutory bodies which, where not covered under category ‘A’ and ‘B’ bureaucrats, exercise quasi-judicial powers of any kind. Arbitrations and other modes of alternative dispute resolution should also be specifically covered in this proposed mechanism. They should be covered in any eventual legislation dealing with corruption in the higher judiciary. The Committee notes that a large mass of full judicial functions, especially from the High Courts has, for the last 30 to 40 years, been progressively hived off to diverse tribunals exercising diverse powers under diverse statutory enactments. The Committee also notes that apart from and in addition to such tribunals, a plethora of Government officials or other persona designata exercise quasi judicial powers in diverse situations and diverse contexts. Whatever has been said in respect of the judiciary in this chapter should, in the considered opinion of this Committee, be made applicable, with appropriate modifications in respect of quasi- judicial bodies, tribunals and persons as well.

11.100 To ensure flexibility, speed and efficiency on the one hand and representation to all organs of State on the other, the Committee recommends a Selection Committee comprising:— (a) The Prime Minister of India- as Head of the Executive. (b) The Speaker Lok Sabha, as Head of the Legislature. (c) The Chief Justice of India-as Head of the Judiciary. (d) The leader of the Opposition of the Lower House. (e) An eminent Indian, selected as elaborated in the next paragraph.

N.B.: functionaries like the Chairman and Leader of the Opposition of the Upper House have not been included in the interests of compactness and flexibility. The Prime Minister would preside over the Selection Committee.

11.101 The 5th Member of the Selection Committee in (e) above should be a joint nominee selected jointly by the three designated Constitutional bodies viz., the Comptroller and Auditor General of India, the Chief Election Commissioner and the UPSC Chairman. This ensures a reasonably wide and representative degree of inputs from eminent Constitutional bodies, without making the exercise too cumbersome. Since the other Members of the Selection Committee are all ex-officio, this 5th nominee of the aforesaid Constitutional bodies shall be nominated for a fixed term of five years. Additionally, it should be clarified that he should be an eminent Indian and all the diverse criteria, individually, jointly or severally, applicable as specified in Clause 4 (1) (i) of the Lokpal Bill 2011 should be kept in mind by the aforesaid three designated Constitutional nominators.

277 11.102 There should, however, be a proviso in Clause 4(3) to the effect that a Search Committee shall comprise at least seven Members and shall ensure representation 50 per cent to Members of SC’s and/or STs and/or Other Backward Classes and/or Minorities and/or Women or any category or combination thereof. Though there is some merit in the suggestion that the Search Committee should not be mandatory since, firstly, the Selection Committee may not need to conduct any search and secondly, since this gives a higher degree of flexibility and speed to the Selection Committee, the Committee, on deep consideration, finally opines that the Search Committee should be made mandatory. The Committee does so, in particular, in view of the high desirability of providing representation in the Search Committee as stated above which, this Committee believes, cannot be effectively ensured without the mandatory requirement to have a Search Committee. It should, however, be clarified that the person/s selected by the Search Committee shall not be binding on the Selection Committee and secondly, that, where the Selection Committee rejects the recommendations of the Search Committee in respect of any particular post, the Selection Committee shall not be obliged to go back to the Search Committee for the same post but would be entitled to proceed directly by itself.

11.103 Over the years, there has been growing concern in India that the entire mass of statutory quasi judicial and other similar tribunals, bodies or entities have been operated by judicial personnel i.e. retired judges, mainly of the higher judiciary viz. the High Courts and the Supreme Court.

11.104 There is no doubt that judicial training and experience imparts not only a certain objectivity but a certain technique of adjudication which, intrinsically and by training, is likely to lead to greater care and caution in preserving principles like fair play, natural justice, burden of proof and so on and so forth. Familiarity with case law and knowledge of intricate legal principles, is naturally available in retired judicial personnel of the higher judiciary.

11.105 However, when a new and nascent structure like Lokpal is being contemplated, it is necessary not to fetter or circumscribe the discretion of the appointing authority. The latter is certainly entitled to appoint judges to the Lokpal, and specific exclusion of judges is neither contemplated nor being provided. However, to consider, as the Lokpal Bill 2011 does, only former Chief Justices of India or former judges of the Supreme Court as the Chairperson of the Lokpal would be a totally uncalled for and unnecessary fetter. The Committee, therefore, recommends that clause 3(2) be suitably modified not to restrict the Selection Committee to selecting only a sitting or former Chief Justice of India or judge of the Supreme Court as Chairperson of the Lokpal.

11.106 A similar change is not suggested in respect of Members of the Lokpal and the existing provision in clause 3 (2) (b) read with clause 19 may continue. Although the Committee does believe that it is time to consider tribunals staffed by outstanding and eminent Indians, not necessarily only from a pool of retired members of the higher judiciary, the Committee feels hamstrung by the Apex Court decision in L. Chandra Kumar v. Union of India 1997 (3) SCC 261 which has held and has been interpreted to hold that statutory tribunals involving adjudicatory functions must not sit singly but must sit in benches of two and that at least one of the two members must be a judicial member. Hence, unless the aforesaid judgment of the Apex Court in L. Chandra Kumar v. Union of India is reconsidered, the Committee refrains from suggesting corresponding changes in clause 3 (2) (b) read with clause 19, though it has been tempted to do so.

11.107 There is merit in the suggestion that clause 3 (4) of the Lokpal Bill 2011 be further amended to clarify that a person shall not be eligible to become Chairperson or Member of Lokpal if: (a) He/ she is a person convicted of any offence involving moral turpitude; (b) He/ she is a person less than 45 years of age, on date of assuming office as Chairperson or Member of Lokpal; (c) He/ she has been in the service of any Central or State Government or any entity owned or controlled by the Central or State Government and has vacated office either by way of resignation, removal or retirement within the period of 12 months prior to the date of appointment as Chairperson or Member of Lokpal.

11.108. In clause 9 (2), the existing provision should be retained but it should be added at the end of that clause, for the purpose of clarification, that no one shall be eligible for re-appointment as Chairperson or Member of the Lokpal if he has already enjoyed a term of five years.

278 11.109 The Committee has already recommended appropriate representation on the Search Committee, to certain sections of society who have been historically marginalized. The Committee also believes that although the institution of Lokpal is a relatively small body of nine members and specific reservation cannot and ought not to be provided in the Lokpal institution itself, there should be a provision added after clause 4 (5) to the effect that the Selection Committee and the Search Committee shall make every endeavour to reflect, on the Lokpal institution, the diversity of India by including the representation, as far as practicable, of historically marginalized sections of the society like SCs/ STs, OBCs, minorities and women.

11.110 As regards clause 51 of the Lokpal Bill, 2011, the Committee recommends that the intent behind the clause be made clear by way of an Explanation to be added to the effect that the clause is not intended to provide any general exemption and that "good faith" referred to in clause 52 shall have the same meaning as provided in section 52 of the IPC.

In Search of an Equilibrium

11.111 (A) Whatever is stated hereinafter in these recommendations is obviously applicable only to Lokpal and Lokayukta covered personnel and offences/ misconduct, as already delineated in this Report earlier, inter alia, in Chapter 8 and elsewhere. (B) For those outside (A) above, the existing law, except to the extent changed, would continue to apply.

11.112 This Chapter, in the opinion of the Committee, raises an important issue of the quality of both investigation and prosecution; the correct balance and an apposite equilibrium of 3 entities (viz. Lokpal, CBI and CVC) after creation of the new entity called Lokpal; harmonious functioning and real life operational efficacy of procedural and substantive safeguards; the correct balance between initiation of complaint, its preliminary screening/ inquiry, its further investigation, prosecution, adjudication and punishment; and the correct harmonization of diverse provisions of law arising from the Delhi Special Police Establishment Act, the CVC Act, the proposed Lokpal Act, the IPC, CrPC and the Prevention of Corruption Act. It is, therefore, a somewhat delicate and technical task.

11.113 The stages of criminal prosecution of the Lokpal and Lokayukta covered persons and officers can be divided broadly into 5 stages, viz. (a) The stage of complaint, whether by a complainant or suo motu, (b) the preliminary screening of such a complaint, (c) the full investigation of the complaint and the report in that respect, (d) prosecution, if any, on the basis of the investigation and (e) adjudication, including punishment, if any.

11.114 The Committee recommends that the complaint should be allowed to be made either by any complainant or initiated suo motu by the Lokpal. Since, presently, the CBI also has full powers of suo motu initiation of investigation, a power which is frequently exercised, it is felt that that the same power of suo motu proceedings should also be preserved for both the CBI and the Lokpal, subject, however, to overall supervisory jurisdiction of the Lokpal over the CBI, including simultaneous intimation and continued disclosure of progress of any inquiry or investigation by the CBI to the Lokpal, subject to what has been elaborated in the next paragraph.

11.115 Once the complaint, through any party or suo motu has arisen, it must be subject to a careful and comprehensive preliminary screening to rule out false, frivolous and vexatious complaints. This power of preliminary inquiry must necessarily vest in the Lokpal. However, in this respect, the recommendations of the Committee in para 12.36(I) should be read with this para. This is largely covered in clause 23 (1) of the Lokpal Bill, 2011. However, in this respect, the Lokpal would have to be provided, at the inception, with a sufficiently large internal inquiry machinery. The Lokpal Bill, 2011 has an existing set of provisions (Clauses 13 and 14 in Chapter III) which refers to a full-fledged investigation wing. In view of the structure proposed in this Chapter, there need not be such an investigation wing but an efficacious inquiry division for holding the preliminary inquiry in respect of the complaint at the threshold. Preliminary inquiry by the Lokpal also semantically distinguishes itself from the actual investigation by the CBI after it is referred by the Lokpal to the CBI. The pattern for provision of such an inquiry wing may be similar to the existing structure as provided in Chapter III of the Lokpal Bill, 2011 but with suitable changes made, mutatis mutandis, and possible merger of the provisions of Chapter VII with Chapter III.

279 11.116 The Committee is concerned at the overlap of terminology used and procedures proposed, between preliminary inquiry by the Lokpal as opposed to investigation by the investigating agency, presently provided in Clause 23 of the Lokpal Bill. The Committee, therefore, recommends:

(a) that only two terms be used to demarcate and differentiate between the preliminary inquiry to be conducted by the Lokpal, inter -alia, under Chapters VI and VII read with Clause 2(1)(e) as opposed to an investigation by the investigating agency which has been proposed to be the CBI in the present report. Appropriate changes should make it clear that the investigation (by the CBI as recommended in this report), shall have the same meaning as provided in Clause 2 (h) of the Cr.P.C. whereas the terms “inquiry” or “preliminary investigation” should be eschewed and the only two terms used should be “preliminary inquiry” ( by the Lokpal) on the one hand & “investigation” (by the CBI), on the other.

(b) the term preliminary inquiry should be used instead of the term inquiry in clause 2(1)(e) and it should be clarified therein that it refers to preliminary inquiry done by the Lokpal in terms of Chapters VI and VII of the Lokpal Bill, 2011 and does not mean or refer to the inquiry mentioned in Section 2(g) of the Cr.P.C.

(c) the term “investigation” alone should be used while eschewing terms like “preliminary investigation” and a similar definitional provision may be inserted after Clause 2(1)(e) to state that the term investigation shall have the same meaning as defined in Clause 2(h) of the Cr.P.C.

(d) Similar changes would have to be made in all other clauses in the Lokpal Bill, 2011, one example of which includes Clause-14.

11.117 There are several parts of Clause 23 of the 2011 Bill, including Clauses 23(4), 23(5), 23(6), 23(9) and 23(11) which require an opportunity of being heard to be given to the public servant during the course of the preliminary inquiry i.e. the threshold proceedings before the Lokpal in the sense discussed above. After deep consideration, the Committee concludes that it is unknown to criminal law to provide for hearing to the accused at the stage of preliminary inquiry by the appropriate authority i.e. Lokpal or Lokayukta in this case. Secondly, the preliminary inquiry is the stage of verification of basic facts regarding the complaint, the process of filtering out false, frivolous, fictitious and vexatious complaints and the general process of seeing that there is sufficient material to indicate the commission of cognizable offences to justify investigation by the appropriate investigating agency. If the material available in the complaint at the stage of its verification through the preliminary inquiry is fully disclosed to the accused, a large part of the entire preliminary inquiry, later investigation, prosecution and so on, may stand frustrated or irreversibly prejudiced at the threshold. Thirdly, and most importantly, the preliminary inquiry is being provided as a threshold filter in favour of the accused and is being entrusted to an extremely high authority like the Lokpal, created after a rigorous selection procedure. Other agencies like the CBI also presently conduct preliminary inquiries but do not hear or afford natural justice to the accused during that process. Consequently the Committee recommends that all references in Clause 23 or elsewhere in the Lokpal Bill, 2011 to hearing of the accused at the preliminary inquiry stage should be deleted.

11.118 Since the Committee has recommended abolition of the personal hearing process before the Lokpal during the preliminary inquiry, the Committee deems it fit and proper to provide for the additional safeguard that the decision of the Lokpal at the conclusion of the preliminary inquiry to refer the matter further for investigation to the CBI, shall be taken by a Bench of the Lokpal consisting of not less than 3 Members which shall decide the issue regarding reference to investigation, by a majority out of these three.

11.119 Naturally it should also be made clear that the accused is entitled to a full hearing before charges are framed. Some stylistic additions like referring to the charge sheet “if any” (since there may or may not be a chargesheet) may also be added to Clause 23(6). Consequently, Clauses like 23(7) and other similar clauses contemplating proceedings open to public hearing must also be deleted.

11.120 Clause 23(8) would have to be suitably modified to provide that the appropriate investigation period for the appropriate investigating agency i.e. CBI in the present case, should normally be within six months with only one extension of a further six months, for special reasons. Reference in Clause 23(8) to “inquiry” creates 280 highly avoidable confusion and it should be specified that the meanings assigned to inquire and investigate should be as explained above.

11.121 The Committee also believes that there may be several exigencies during the course of both preliminary inquiry and investigation which may lead to a violation of the 30 days or six months periods respectively specified in Clause 27(2) and 23(8). The Committee believes that it cannot be the intention of the law that where acts and omissions by the accused create an inordinate delay in the preliminary inquiry and/or other factors arise which are entirely beyond the control of the Lokpal, the accused should get the benefit or that the criminal trial should terminate. For that purpose it is necessary to insert a separate and distinct provision which states that Clauses 23(2), 23(8) or other similar time limit clauses elsewhere in the Lokpal Bill, 2011, shall not automatically give any benefit or undue advantage to the accused and shall not automatically thwart or terminate the trial.

11.122 Clause 23(10) also needs to be modified. Presently, it states in general terms the discretion to hold or not to hold preliminary inquiry by the Lokpal for reasons to be recorded in writing. However, this may lead to allegations of pick and choose and of arbitrariness and selectivity. The Committee believes that Clause 23(10) should be amended to provide for only one definition viz., that preliminary inquiry may be dispensed with only in trap cases and must be held in all other cases. Even under the present established practice, the CBI dispenses with preliminary inquiry only in a trap case for the simple reason that the context of the trap case itself constitutes preliminary verification of the offence and no further preliminary inquiry is necessary. Indeed, for the trap cases, Section 6 A (ii) of the Delhi Special Police Establishment Act, 1946 also dispenses with the provision of preliminary inquiries. For all cases other than the trap cases, the preliminary inquiry by the Lokpal must be a non dispensable necessity.

11.123 Clause 23(11) also needs to be modified / deleted since, in this Report, it is proposed that it is the CBI which conducts the investigation which covers and includes the process of filing the charge sheet and closure report.

11.124 Similarly, Clause 23 (12) (b) would have to be deleted, in view of the conclusion hereinabove regarding the absence of any need to provide natural justice to the accused at the stage of preliminary inquiry. Clause 23(14) is also unusually widely worded. It does not indicate as to whom the Lokpal withhold records from. Consequently that cannot be a general blanket power given to the Lokpal to withhold records from the accused or from the investigating agency. Indeed, that would be unfair, illegal and unconstitutional since it would permit selectivity as also suppress relevant information. The clause, therefore, needs to be amended.[Para 12.36(H)]

11.125 The case of the Lokpal initiating action suo motu, requires separate comment. In a sense, the preliminary inquiry in the case of a Lokpal suo motu action becomes superfluous since the same body ( i.e. Lokpal) which initiates the complaint, is supposed to do a preliminary inquiry. This may, however, not be as anomalous as it sounds since even under the present structure, the CBI, or indeed the local police, does both activities i.e. suo motu action as also preliminary screening/ inquiry. The Committee was tempted to provide for another body to do preliminary inquiry in cases where the Lokpal initiates suo motu action, but in fact no such body exists and it would create great multiplicity and logistical difficulty in creating and managing so many bodies. Hence the Committee concludes that in cases of suo motu action by Lokpal, a specific provision must provide that that part of the Lokpal which initiates the suo motu proposal, should be scrupulously kept insulated from any part of the preliminary inquiry process following upon such suo motu initiation. It must be further provided that the preliminary inquiry in cases of suo motu initiation must be done by a Lokpal Bench of not less than five Members and these should be unconnected with those who do the suo motu initiation.

11.126 These recommendations also prevent the Lokpal from becoming a single institution fusing unto itself the functions of complainant, preliminary inquirer, full investigator and prosecutor. It increases objectivity and impartiality in the criminal investigative process and precludes the charge of creating an unmanageable behemoth like Lokpal, while diminishing the possibility of abuse of power by the Lokpal itself.

281 11.127 These recommendations also have the following advantages: (i) The CBI’s apprehension, not entirely baseless, that it would become a Hamlet without a Prince of Denmark if its Anti-Corruption Wing was hived off to the Lokpal, would be taken care of. (ii) It would be unnecessary to make CBI or CVC a Member of the Lokpal body itself. (iii) The CBI would not be subordinate to the Lokpal nor its espirit de corps be adversely affected; it would only be subject to general superintendence of Lokpal. It must be kept in mind that the CBI is an over 60 year old body, which has developed a certain morale and espirit de corps, a particular culture and set of practices, which should be strengthened and improved, rather than merely subsumed or submerged within a new or nascent institution, which is yet to take root. Equally, the CBI, while enhancing its autonomy and independence, cannot be left on auto pilot. (iv) The CVC would retain a large part of its disciplinary and functional role for non Lokpal personnel and regarding misconduct while not being subordinate to the Lokpal. However, for Lokpal covered personnel and issues, including the role of the CBI, the CVC would have no role. (v) Mutatis mutandis statutory changes in the Lokpal Bill, the CVC and the CBI Acts and in related legislation, is accordingly recommended.

After the Lokpal has cleared the stage for further investigation, the matter should proceed to the CBI. This stage of the investigation must operate with the following specific enumerated statutory principles and provisions: (A) On the merits of the investigation in any case, the CBI shall not be answerable or liable to be monitored either by the Administrative Ministry or by the Lokpal. This is also fully consistent with the established jurisprudence on the subject which makes it clear that the merits of the criminal investigation cannot be gone into or dealt with even by the superior courts. However, since in practise it has been observed in the breach, it needs to be unequivocally reiterated as a statutory provision, in the proposed Lokpal Act, a first in India. (B) The CBI shall, however, continue to be subject to the general supervisory superintendence of the Lokpal. This shall be done by adding a provision as exists today in the CVC Act which shall now apply to the Lokpal in respect of the CBI. Consequently, the whole of the Section 8 (1) [not Section 8 (2)] of the CVC Act should be included in the Lokpal Bill to provide for the superintendence power of the Lokpal over the CBI.

11.128 Correspondingly, reference in Section 4 of the Delhi Special Police Establishment Act to the CVC would have to be altered to refer to the Lokpal.

11.129 At this stage, the powers of the CBI would further be strengthened and enhanced by clarifying explicitly in the Lokpal Bill that all types of prior sanctions/terms or authorizations, by whatever name called, shall not be applicable to Lokpal covered persons or prosecutions. Consequently, the provisions of Section 6 (A) of the Delhi Special Police Establishment Act, Section 19 of the Prevention of Corruption Act and Section 197 of the IPC or any other provision of the law, wherever applicable, fully or partially, will stand repealed and rendered inoperative in respect of Lokpal and Lokayukta prosecutions, another first in India. Clause 27 of the Lokpal Bill, 2011 is largely consistent with this but the Committee recommends that it should further clarify that Section 6 A of the DSPE Act shall also not apply in any manner to proceedings under the proposed Act. The sanction requirement, originating as a salutary safeguard against witch hunting has, over the years, as applied by the bureaucracy itself, degenerated into a refuge for the guilty, engendering either endless delay or obstructing all meaningful action. Moreover, the strong filtering mechanism at the stage of preliminary inquiry proposed in respect of the Lokpal, is a more than adequate safeguard, substituting effectively for the sanction requirement. Elsewhere, this Report recommends that all sanction requirements should be eliminated even in respect of non Lokpal covered personnel.

11.130 The previous two paragraphs if implemented, would achieve genuine and declared statutory independence of investigation for the first time for the CBI.

282 11.131 The main investigation, discussed in the previous few paragraphs, to be conducted by the CBI, necessarily means the stage from which it is handed over to the CBI by the Lokpal, till the stage that the CBI files either a chargesheet or a closure report under Section 173 of the Cr.P.C. However, one caveat needs to be added at this stage. The CBI's chargesheet or closure report must be filed after the approval by the Lokpal and, if necessary, suitable changes may have to be made in this regard to Section 173 Cr. P.C. and other related provisions.

11.132 The aforesaid independence of the CBI is reasonable and harmonizes well with the supervisory superintendence of the Lokpal in the proposed Lokpal Bill, which is now exercised by CVC under Section 8 (1) of the CVC Act. The Committee recommends the above provision, suitably adapted to be applicable in the relationship between the Lokpal and the CBI.

11.133 The next stage of the criminal process would go back to the Lokpal with full powers of prosecution on the basis of the investigation by the CBI. The following points in this respect are noteworthy: • Clause 15 in Chapter IV of the Lokpal Bill, 2011 already contains adequate provisions in this regard and they can, with some modifications, be retained and applied. • The Committee's recommendations create, again for the first time, a fair demarcation between independent investigation and independent prosecution by two distinct bodies, which would considerably enhance impartiality, objectivity and the quality of the entire criminal process. • It creates, for the first time in India, an independent prosecution wing, under the general control and superintendence of the Lokpal, which, hopefully will eventually develop into a premium, independent autonomous Directorate of Public Prosecution with an independent prosecution service (under the Lokpal institution). The Committee also believes that this structure would not in any manner diminish or dilute the cooperative and harmonious interface between the investigation and prosecution processes since the former, though conducted by the CBI, comes under the supervisory jurisdiction of the Lokpal.

11.134 The next stage is that of adjudication and punishment, if any, which shall, as before, be done by a special Judge. The Committee considers that it would be desirable to use the nomenclature of 'Lokpal Judge' (or Lokayukta Judge in respect of States) under the new dispensation. However, this is largely a matter of nomenclature and existing provisions in the Lokpal Bill, 2011 in Chapter IX are adequate, though they need to be applied, with modifications.

11.135 The aforesaid integrates all the stages of a criminal prosecution for an offence of corruption but still leaves open the issue of departmental proceedings in respect of the same accused.

11.136 The Committee agrees that for the Lokpal covered personnel and issues, it would be counter- productive, superfluous and unnecessary to have the CVC to play any role in departmental proceedings. Such a role would be needlessly duplicative and superfluous. For such matters, the Lokpal should be largely empowered to do all those things which the CVC presently does, but with some significant changes, elaborated below.

11.137 Clauses 28 and 29 of the Lokpal Bill are adequate in this regard but the following changes are recommended: (i) The Lokpal or Lokayukta would be the authority to recommend disciplinary proceedings for all Lokpal or Lokayukta covered persons. (ii) The CVC would exercise jurisdiction for all non Lokpal covered persons in respect of disciplinary proceedings. (iii) The CBI would similarly continue to exercise its existing powers under the CVC's superintendence for all non Lokpal personnel and proceedings. (iv) Departmental action must, as the law today stands, comply with the over arching mandate of Article 311 of the Indian Constitution. Dissatisfaction or objection to the practical operation of Article 311, fully understandable and indeed justifiable, does not permit or impel us to ignore the existence of Article 311, until altered. If there is consensus outside the Committee on amending Article 311, it must be amended as elaborated and recommended by the

283 Committee in paragraph 12.49. However, absent such a consensus, the passage of the Lokpal Bill need not be held up on that account and hence the present report makes recommendations on the basis of the continuance of Article 311. If, however, it is amended as per paragraph 12.49, the proposed Lokpal Act can easily be modified to reflect such changes. (v) It may also be remembered that the Lokpal itself does not conduct the departmental proceedings. For the law to provide for Lokpal to conduct the entire departmental proceedings itself, would be to put a humungous and unworkable burden on the institution. (vi) Therefore, the power to take departmental action whether in the case of bureaucrats or in the case of Ministers as provided in Clauses 28 and 29 of the Lokpal Bill, 2011, are largely appropriate. (vii) The Committee is informed that suspension of a delinquent officer during his criminal prosecution is virtually automatic in practice. However, the Committee feels the need to emphasize that a specific provision be added in Chapter VII making it clear that once any bureaucrat (viz. group A or group B officer) as covered in the proposed Lokpal Bill is under investigation and the Lokpal makes a recommendation that such a person be suspended, such suspension should mandatorily be carried out unless, for reasons to be recorded in writing by a majority out of a group of 3 persons not below the rank of Ministers of State belonging to the Ministries of Home, Personnel and the relevant administrative Ministry of the delinquent officer, opine to the contrary. Such suspension on Lokpal recommendation does not violate Article 311 in any manner. Refusal by the aforesaid Committee of three provides a check and balance qua possibly unreasonable Lokpal recommendations. The reference is to three high functionaries of three Ministries and not to the Administrative Ministry alone since it is frequently found in practise that the Administrative Ministry's responses alone may seek to preserve the status quo on account of vested interests arising from the presence of the delinquent officer in that Administrative Ministry. (viii) There cannot be a counterpart suspension provision in respect of MPs or Ministers or the like, but an explicit clause may be added to the existing Clause 29 that the Presiding Officer of the relevant House in the case of MPs and Prime Minister in the case of a member of the Council of Ministers shall record a note in writing indicating the action being taken in regard to the Lokpal's recommendations or the reasons for not taking such action. (ix) Wherever otherwise applicable, in respect of the details of the departmental inquiry, the provisions of Article 311 would, unless altered and subject to Paras D above and 12.49 below, continue to apply.

11.138 The Committee strongly pleads and recommends that the provisions of Article 311 require a close and careful relook to ensure that reasonable protection is given to bureaucrats for the independent and fair discharge of their functions but that the enormous paraphernalia of procedural rules and regulations which have become a major obstacle in the taking of genuine and legitimate departmental action against delinquent officers, be eliminated. The Committee notes with concern and with growing apprehension that serious and high level/big ticket corruption has increased exponentially since Independence at all levels in the Lokpal proposed categories of personnel. In particular, bureaucratic corruption has been relatively ignored or underplayed in the context of the excessive media and civil society focus on political corruption, coupled with the doctrine of civil service anonymity, which this country imported from our former colonial masters. Hence, the substantial modification of Article 311 or, indeed, its replacement by a much lesser statutory (not constitutional counterpart) should be taken up and implemented at the earliest. It may be added that what requires to be looked into is not the mere text of Article 311 but the context which has grown around it, through an undesirably large number of statutory and non-statutory rules, procedures and regulations coupled with huge common law jurisprudence over the last 6 decades. It is universally believed that the aforesaid has, in practice, converted Article 311, from a reasonable and salutary safeguard to a haven for those indulging in mal-administration and/ corruption with no fear of consequences and the certainty of endless delay. The fact that Article 311 had been given constitutional and not mere statutory status is also responsible for its largely unchanged character over the last six plus decades.

11.139 Though not strictly within the purview of the Lokpal Bill, 2011 itself, the Committee also recommends that CVC's advice in respect of departmental action to be taken by the relevant department in case of non- Lokpal covered personnel must, by a suitable amendment to the CVC Act, be made binding to the extent that,

284 unless for reasons to be recorded by a majority out of the same joint group as aforesaid, comprising 3 persons not below the rank of Ministers of State belonging respectively to the Ministries of Home Affairs, Personnel and the Administrative Ministry to which the delinquent officer belongs, states that CVC advice be not followed, such CVC advice shall be binding.

11.140 The Committee has deliberated long and hard on whether it can or should go to the extent of suggesting changes in the selection procedure of the CBI chief. Presently, the CBI chief is appointed by the Government on the recommendation of a Committee consisting of the CVC as Chairperson, Vigilance Commissioner, Secretary, Government of India in the Ministry of Home Affairs and Secretary of the Administrative Ministry (in this case the Ministry of Personnel) [See Section 4A of the Delhi Special Police Establishment Act, 1946]. Section 8 (2) of the 1946 Act further provides for a mandatory input in the selection of a new Director to be made by the outgoing Director and also enjoins upon the Committee, in Section 8 (3), to make recommendations for a panel of officers on the basis of seniority, integrity and experience in the investigation of anti-corruption cases, necessarily belonging to the Indian Police Services.

11.141 Interestingly, Section 4 C of the same 1946 Act provides for the same Committee to make recommendations for all appointments as also extension or curtailment of tenure of all officers above the level of Superintendent of Police in the CBI.

11.142 It is thus clear that it is not correct to suggest that the Central Government has absolute discretion in appointing the CBI Director. After the Vineet Narain vs. Union of India judgment* by the Apex Court, significant changes were brought into the Delhi Special Police Establishment Act, 1946. In 2003 (by Act 45 of 2003) providing for the aforesaid independent and autonomous regime for selection and appointment of CBI Director. The Central Vigilance Commissioner who heads the selection and recommendation process is itself a high statutory authority under a separate enactment called the Central Vigilance Commission Act of 2003 which, in turn in Section 4, obliges the Government to appoint the CVC on the basis of a recommendation of a high powered Committee comprising the Prime Minster, the Home Minister and the leader of opposition in the Lok Sabha. It is, therefore, erroneous to brush aside the existing system as merely involving absolute power/discretion to select Government favourites as CBI Director.

11.143 Furthermore, the Committee believes that it would neither be proper nor desirable for the Committee to go into and suggest fundamental statutory alterations to the procedure for selection and appointment of CBI Director, which appears, nowhere, directly or indirectly, to be a subject referred for the consideration of this Committee. Collateral recommendations of this nature by a side wind should, in the opinion of this Committee, be avoided, especially since significant statutory changes have been brought in with respect to the appointment of the CBI Director less than 8 years ago.

11.144 The Committee, therefore, recommends:—

(a) The institution of Lokpal must be given constitutional status by inserting into the Constitution by way of constitutional amendment certain basic principles about the Lokpal and leaving the details in the new proposed statute on which this Committee is opining.

(b) One practical, reasonable and legally valid model would be for the Government to consider the model and set of provisions asked for by the Committee and presented in the evidence to the Committee as a draft constitutional amendment by two former Chief Justices of India. That draft is enclosed herewith as Annexure ‘F’ and is self-explanatory.

(c) This constitutional amendment does not require ratification by not less than half of the State Legislatures since it does not seek to make any change in any of the provisions listed in the second proviso to Article 368 (2) of the Indian Constitution.

(d) The constitutional amendment should, as reflected in the enclosed Annexure ‘F’ be a set of basic principles for the Lokpal as also provide for the basic set up of the Lokayuktas. Both these provisions, proposed in the enclosed draft, propose Part XVA and Articles 329(C) and 329(D), as enabling, empowering and permissive provisions and authorize and empower the

* 1996(2) SCC 199. 285 appropriate legislature to make proper laws, mutatis mutandis, for Lokpal at the Centre and for Lokayuktas at the State.

(e) Such a constitutional status would not only considerably enhance the stature, legal and moral authority of the Lokpal institution but would make interference and tinkering in these basic principles not subject to the vicissitudes of ordinary or transient majorities. Over a period of time, it is likely that these principles would develop into a set of immutable principles and, possibly, even become part of basic structure of the Constitution rendering the existence of the Lokpal and its basic features un-amendable even by a constitutional amendment.

(f) Apprehensions regarding delay are misplaced. The constitutional amendment bill would be much shorter than the statutory bill for the new proposed Lokpal and can be passed on the same day and at the same time as the latter, though by a different majority. It is inconceivable that while parties are in favour of the institution of Lokpal in principle, as a statutory body, parties would not agree with equal alacrity for the passage of a constitutional amendment bill.

(g) The suggestion that the entire statutory bill should be transposed as a constitutional amendment into the Constitution is untenable and impracticable. That would eliminate flexibility and would require a constitutional amendment for the smallest future change. Moreover, the Constitution does not and is not intended to provide for nitty gritty operational details. It should be and is intended to be a declaration of general and basic principles which, in turn, enable and empower formal legislation, which in turn would take care of the details.

(h) An easy or casual repeal of the entire Lokpal scheme would not be possible once it is constitutionally entrenched.

(i) Similarly, there would be no option for the federal or State Legislatures not to have a Lokpal or a Lokayukta at all since the constitutional mandate would be to the contrary.

(j) Contextually, the issues and some of the suggestions in this Chapter may overlap with and should, therefore, be read in conjunction with Chapter 7 of this report. Though the Committee has already opined in Chapter 4 of this Report here that the issues of grievance redressal should be dealt with in a separate legislation, the Committee hereby also strongly recommends that there should be a similar declaration either in the same Chapter of the Lokpal or in a separate Chapter proposed to be added in the Indian Constitution, giving the same constitutional status to the citizens grievances and redressal machinery.

(k) This recommendation also reflects the genuine and deep concern of this Committee about the need, urgency, status and importance of a citizen's charter/grievance machinery and the Committee believes that the giving of the aforesaid constitutional status to this machinery would go a long way in enhancing its efficacy and in providing a healing touch to the common man.

(l) Furthermore, the Committee believes that this recommendation herein is also fully consistent with the letter and spirit of para 1.8 above viz. the conclusions of the Minister of Finance in the Lower House recorded in para 1.8 above.

11.145 There is no doubt that corruption is neither the exclusive preserve nor the special privilege nor the unique entitlement of only the political or bureaucratic classes. Nor can anyone justify exclusionary holy cows, supposedly immunized, exempted or put outside the purview of a new and vigorous anti-corruption monitoring, investigation and prosecution regime as the proposed new Lokpal Bill seeks to create. If corruption is rampant in a country like India, it permeates and pervades every nook and cranny of society and is certainly not restricted to the political or bureaucratic classes. Indeed, while no specific statistical data are available, it may not be at all inconceivable that, in quantum terms, the degree of corruption in the non-political/non-bureaucratic private sector, in the aggregate, is far higher than in the realm of political and bureaucratic classes alone. Therefore, in principle, non-application of the proposed Lokpal Bill to all such classes does not appear to be justifiable.

286 11.146 In this connection, the very recent UK Bribery Act, 2010, is both interesting and instructive. Drafted in a completely non-legalistic manner, format and language, this Act seeks to criminalize corruption everywhere and anywhere, i.e. in the public and private sectors in UK, in Governmental and non-Governmental sectors, by UK citizens abroad, by non-UK citizens acting in UK and in the entire gamut of private and individual transactions in addition to covering dealings in the private sector, intra-private sector, intra-public sector, in Government and private interface and in every other nook and cranny of society.

11.147 Despite the above and despite the simplicity and attractiveness of an all inclusive approach, the latter must yield to exigencies of logistics, operational efficacy and pragmatism. Since this is the nation’s first experiment with a central Lokpal institution, it would amount to starry-eyed idealism to recommend the blanket inclusion of every segment of society under the jurisdiction of an omnipotent and omniscient Lokpal. Such comprehensive inclusion is entirely understandable and may be logically more justifiable in principle, but, in the final opinion of the Committee, must await several years of evolution of the Lokpal institution and a corpus of experiential and practical lessons as also the wisdom of a future generation of Parliamentarians.

11.148 As far as the proposed dispensation is concerned, the only available dividing and demarcating line between the complete inclusion and partial exclusion of entities from the jurisdiction of the Lokpal would have to be some test of Government ownership and/or control and/or size of the entity concerned. In this regard, clauses 17 (1) (f) and (g) of the Lokpal Bill, 2011 are relevant. Clause 17 (1) (f) applies the Lokpal jurisdiction mainly to office-bearers of every society, A.o.P. or trust, registered or not, but wholly or partially financed or aided by the Government, subject to being above some specified annual income minima. Clause 17 (1) (g), similarly, applies the Lokpal to office-bearers of every society, A.o.P. or trust, receiving donations from the public, again subject to an annual income minima to be specified by the Central Government.

11.149 After deep consideration, the Committee believes and recommends that these clauses should be merged and expanded to provide for the following coverage/jurisdiction of the Lokpal:

(a) The Lokpal jurisdiction should apply to each and every institution/entity, by whatever name called, owned or controlled by the Central Government, subject, however, to an exclusionary minima, where the ownership or control of the Central Government de minims. Such minima would have to be specified and the power of such specification should be given to the Central Government by notification;

(b) Additionally, all entities/institutions, by whatever name called, receiving donations from the public above a certain minima, liable to be specified by the Central Government should be included. In addition, as also all entities/institutions receiving donations from foreign sources in the terms and context of the Foreign Contribution Regulation Act (FCRA) in excess of Rs.10 lakh per year, should be covered, whether or not, controlled by the Government. This is largely as per existing clause 17 (1) (g), except for the addition of the foreign donation recipient facet;

(c) It should be clarified that this coverage shall apply, as also stated above, to every entity and institution, by whatever name called, be it corporate, society, trust, A.o.P., partnership, sole proprietorship, LLP or any other, registered or not. It should also be made clear that the approach is functional or ownership based or size based and not based on nomenclature;

(d) It is thus clear that corporates, media or NGOs should and would be covered only to the above extent and not otherwise.

11.150 Despite the foregoing elaborations and ‘lament’ regarding exclusion of large slices of society from the Lokpal regime, it must not be forgotten that all persons, whether private, individual, and totally non- Governmental, are already necessarily covered as abettors, co-conspirators, inciters and givers or recipients or bribes in terms of clause 17 (3) of the Lokpal Bill, 2011. It may, however, be further clarified suitably in inclusive and not exhaustive terms in clause 17 (3) that the phrase "if such person is associated with the allegation of corruption", should include abettors, bribe-givers, bribe-takers, conspirators and all other persons, directly or indirectly, involved in the act or omission relating to corruption within which all other persons and entities in clause 17 are subsumed. The word "associated" presently used is too general and vague.

287 11.151 The Committee further recommends that clause 17 (3) should be explicitly clarified to the effect that the abettor, conspirator or person associated, in any manner, directly or indirectly, with the corruption allegation, shall not only be included but be fully liable to investigation, prosecution and punishment and that the proviso to clause 17 (3) shall be limited only to proposed action to be taken ‘in case of a person serving in the affairs of a State’ and not qua anyone else.

Support Structure for the Lokpal: Whistle Blowers, Phone Tappers and Legal Aid/ Assistance Issues

11.152 As regards the whistleblower issue, this Committee has made a detailed recommendation on the subject on August 10, 2011 in respect of the Bill referred to it. That Bill and the Committee’s recommendation are under the active decision making process of the Government of India for eventual translation into law. [Para 15.10]

11.153 The Committee recommends that the Whistleblowers Bill (Bill No. 97 of 2010) referred to the Committee, with the changes already recommended by the Committee in respect of that Bill (in the Committee's report dated August 10, 2011), be implemented into law simultaneously and concurrently with the Lokpal Bill. In that case, only one provision needs to be inserted in the Lokpal Bill to the effect that safeguards and machinery provided elaborately in the proposed Whistleblowers Bill, as opined upon by the Committee, would be applicable, mutatis mutandis to the Lokpal Bill. In particular, the Committee notes that clauses 10, 11, 12 and 13 of the aforesaid Whistleblowers Bill, provide a fairly comprehensive fasciculus of provisions providing safeguards against victimization, protection of witnesses and other persons, protection of identity of complainant and power to pass interim orders. The Whistleblowers Bill also sets up a competent authority and provides for several other related provisions to make the functioning of that authority efficacious and to enhance the efficiency, potency and vigour of the safeguards intended to be provided to a whistleblower. The proposed provision in the Lokpal Bill should act as a cross referencing, breach of which should activate the related/ applicable provisions of the Whistleblower Bill and render them applicable to all Lokpal proceedings, as if set out in the Lokpal Bill, 2011.

11.154 Naturally, one of the main adaptations of the Whistleblowers Bill for Lokpal proceedings would be that the competent authority in respect of Lokpal covered persons and offences would be the Lokpal and references in the Whistleblowers Bill to CVC or other entities would be rendered inoperative for purposes of Lokpal personnel and officers.

11.155 If, however, the aforesaid Whistleblower Bill, along with the recommendations of `this Committee in that regard, are not enacted into law by the Government of India, co-terminously and simultaneously with the Lokpal Bill, then this Committee recommends the creation of some safeguards, in substance and essence, by the addition of a whole new chapter and certain provisions in the proposed Lokpal Bill. However, those provisions in the Lokpal Bill would be largely an adaptation of the same provisions of the Whistleblowers Bill, especially clauses 10 to 13 of the Whistleblowers Bill, while, as explained above, making the Lokpal the competent authority for such whistleblower issues.

11.156 As regards phone tapping, the Committee emphasizes and underlines the basic reality that phone tapping by regulatory and policing agencies has been prevalent in India for several years and the rules and regulations in that regard have undergone periodic refinement and amendment. Currently the regime of phone tapping is governed by Indian Telegraph Act and Rules read with the judgments of the Supreme Court inter alia in People Union for Civil Liberties Vs. Union of India (1997) 1 SCC 301. The Committee believes that there is no reason, sufficiently strong, to suggest that this substantive law should be altered in respect of Lokpal proceedings.

11.157 Phone tapping has been resorted to, inter alia, by agencies as diverse as CBI, Enforcement Directorate, Directorate of Revenue Intelligence and others, under the aforesaid regime of the Act., Rules and the Supreme Court mandated principles. In all such cases, the Committee is not aware of any situation where any of these agencies are entitled to suo motu, on their own, without separate authorization, and in secrecy, initiate or continue phone tapping. There is, therefore, no reason as to why the proposed Lokpal institution should also not be subjected to the same regime and mechanism. To provide for inherent and separate power in the Lokpal institution in this regard, would also create an excessive and undesirable concentration of powers, would frequently involve a conflict of interest between preliminary inquiry, investigation and prosecution and would

288 disturb the equilibrium of all investigative agencies for the past several years with established practices in respect of phone tapping issues. Indeed, the Committee notes that in other parts of this Report (Chapter 12), the CBI is the principal investigating agency and, therefore, its powers of phone tapping must continue as they exist today.

11.158 As regards legal aid/ assistance, the Committee concludes that clause 56 as framed does not intend to and should not be read to be a mandate for provision of automatic legal aid for every accused in a Lokpal proceeding. Clause 56, by any fair reading, and in the opinion of this Committee, is only intended to provide legal assistance by way of legal representation to the accused in any case before the Lokpal e.g.—a preliminary inquiry. Firstly, the Committee does not read this to mean automatic monetary or fiscal assistance or by way of lawyers’ fees for the accused. Secondly, the Committee believes that this was intended to and recommended so that it should be explicitly clarified that it permits the use of, or appearance by a legal practitioner, where the accused asks for one in Lokpal proceedings e.g.— a preliminary inquiry. In any event, elsewhere in this Report we have recommended deletion of the concept of hearing an accused during preliminary inquiry. If that is done away with, no issue would arise of legal practitioners appearing. In any case, they are entitled to appear in all later stages including trial. Finally, it should be clarified that clause 56 does not intend to abrogate or dilute or attenuate any other provision of law under where, by virtue of those provisions of law, the accused may be entitled to a monetary/ fiscal legal aid or assistance.

11.159 Although it is implicit in the Lokpal Bill, 2011, the Committee believes that to obviate all doubts and to prevent any jeopardy to ongoing trials, the proposed Lokpal should have a specific provision categorically applying Section 4 (3) of the POCA to Lokpal proceedings, to enable the special judge or Lokpal judge to try any other offence, where connected, other than those covered by the Lokpal Act.

11.160 Clause 17 (1) in most of its sub-clauses, including (b), (c), (d) and so on, specifically refers to a current/serving as also a former public servant (e.g. Minister, MP, bureaucrat, etc. both past and present).

11.161 The Committee has seen the substantive provisions of POCA and it appears to be clear that the POCA, which shall continue to be the substantive law applicable to Lokpal trials and proceedings, seeks to render culpable and punish only official acts done by public servants. Be that as it may, the Committee is of the opinion that a specific provision should be inserted in Clause 17 clarifying and specifying that reference to present and former public servants only means that they can be prosecuted whether in or not in office, but only for acts/omissions done while they were in office and not for allegedly fresh acts/omissions after ceasing to hold office.

11.162 The Committee finds that clause 8 and especially clause 8 (1) of the Lokpal Bill, 2011 has struck the right balance and does not need any fundamental changes. It is intended to strengthen the independence and autonomy of the Lokpal by not making it easy to initiate complaints against Lokpal for the Lokpal’s removal. The Committee, however, recommends an addition to clause 8 (1)(iii), to allay and obviate the apprehension expressed in some quarters, that the process to remove the Lokpal cannot be initiated, under the sub-clause, if the President (which essentially means the Central Government) refuses to refer the complaint against the Lokpal. The Committee feels that this apprehension would be adequately taken care of by providing in clause 8 (1)(iii) that where the President does not refer a citizen’s complaint against the Lokpal to the Apex Court, the President (i.e. the Central Government) shall be obliged to record reasons for the same and to furnish those reasons to the complainant within a maximum period of 3 months from the date of receipt of the complaint. The Committee feels that this process, including the transparency involved in recording these reasons and the attendant judicial review available to the complainant to challenge such reason/refusal, contains an adequate check and balance on this subject.

11.163 Additionally, the Committee recommends that Clause 8 (1) (iv) be added in the existing Lokpal Bill, 2011 to provide, specifically, that anyone can directly approach the apex court in respect of a complaint against the Lokpal (institution or individual member) and that such complaint would go through the normal initial hearing and filter as a preliminary matter before the normal bench strength as prescribed by the Supreme Court Rules but that, if the matter is admitted and put for final hearing, the same shall be heard by an apex court bench of not less than 5 members. It is but obvious that other consequential changes will have to be made in the whole of Section 8 to reflect the addition of the aforesaid Clause 8 (1) (iv).

289 11.164 Clause 21 of the Lokpal Bill, 2011 needs a relook. In its present form, it appears to empower the Lokpal Chairperson to intervene and transfer any pending case from one Bench to another, which appears to include the power of transfer even while a case is under consideration of the Lokpal bench on the merits. This uncircumscribed power would seriously impair the objectivity and autonomy of Lokpal Benches, especially at the stage of preliminary inquiry which is a crucial filtering mechanism. It also appears to be inconsistent with normal principles of jurisprudence which seriously frown upon interference even by the Chief Justice in a pending judicial matter before another Bench. The way out would be to delete this provision and to provide for transfer only in exceptional cases where, firstly, strong credible allegations are brought to the forefront in respect of the functioning of any particular Lokpal Bench and secondly, the decision to transfer is taken by not only the entire Lokpal institution sitting together, but also including the Members of the Bench from which the matter is sought to be transferred.

11.165 As regards punishment under the Prevention of Corruption Act for a person convicted of different offences relating to corruption, it is noteworthy that the Prevention of Corruption Act prescribes, as it now stands, punishment not less than six months which may extend to five years for various offences involving public servant taking gratification in Sections 7, 8, 9, 10 and also Section 11 which deals with public servant obtaining valuable thing without consideration. Section 12 of POCA dealing with the abetment prescribes the same as six months to five years range of punishment. On the other hand, for offences of criminal misconduct by public servant, the prescribed punishment is not less than one year, extendable upto seven years in Section 13 while Section 14 prescribes punishment of not less than two years extendable to seven years. Section 15 prescribes the punishment for offences referred to in clause C or clause D of 5.13(i) which has no lower limit but a maximum of three years. Additionally, all these provisions empower the imposition of fine.

11.166 Diverse representations from diverse quarters have suggested an enhancement of punishment, with diverse prescriptions of quantum of sentence, including life imprisonment. After deep consideration, the Committee finds it prudent to strike a balanced, reasonable middle ground. A sudden, dramatic and draconian enhancement is, in the opinion of the Committee, undesirable. The Committee cannot ignore the inherent fallibility of mankind and if fallibility is inherent in every system, draconian and extreme punishment, even in a few cases of wrongful conviction, would be undesirable.

11.167 Taking a holistic view, the Committee is of the opinion that:

(a) In the cases of Sections 7, 8, 9 and the like, the range from six months to five years should the substituted by imprisonment not less than three years which may extend to not more than seven years.

(b) In the Sections 13 and 14 category of cases providing for a range to one year to seven years, the Committee suggests enhancement, in the case of Section 13 offences, to a minimum of four years and a maximum of ten years while for Section 14, the Committee suggests a minimum of five years and a maximum of ten years.

(c) For Section 12 which presently prescribes six months to five years, the aforesaid of minimum three and maximum of seven years shall apply whereas for Section 15 which presently prescribes zero to three years, the range should be very minimum from two to maximum five years.

(d) Additionally, wherever applicable, there should be a general provision, cutting across Sections, creating a power of full confiscation of assets, proceeds, receipts and benefits, by whatever name called, arising from corruption by the accused. This provision should be properly drafted in a comprehensive manner to cover diverse situations of benefit in cash or kind, which, to the maximum extent possible, should fully be liable to confiscation.

11.168 Although this issue has been discussed in other parts of this Report, for the sake of clarity, the Committee clarifies that there should be 3 specific and important time limits in the final enactment viz. firstly, the period of 30 days extendable once by a further period of 60 days for preliminary inquiry by the Lokpal; secondly, for completion of investigation by the investigating agency, within 6 months with one further extension of 3 months and thirdly, for completion of trials, within one year with one further extension of 6 months. 290 11.169 The Committee finds no basis for and no reason to retain the last proviso to clause 17 (1)(g) which appears to be overbroad and altogether exempts from the Lokpal Bill 2011 any entity, simply because it is constituted as a new religious entity or meant to be constituted as an entity for religious purposes. This proviso should be deleted, otherwise this exception would virtually swallow up the entire rule found in the earlier parts of clause 17.

11.170 As regards clause 51 of the Lokpal Bill, 2011, the Committee recommends that the intent behind the clause be made clear by way of an Explanation to be added to the effect that the clause is not intended to provide any general exemption and that "good faith" referred to in clause 52 shall have the same meaning as provided in section 52 of the IPC.

VII. Secretariat 11.171 The Committee Section (Personnel and Public Grievances) consists of one Assistant Director, one Committee Officer, one Senior Assistant, one Assistant, two Senior Clerk and supervised by one Joint Director, one Director and Joint Secretary remained incharge of the Section constituted the Secretariat of the Committee. 11.172 The work relating to drafting, consideration and adoption of four draft Reports by the Committee along with their presentation / laying in both the Houses of Parliament and distribution was undertaken. 11.173 The Section also studied scrutinized and analysed the materials such as Bills, Background note on the Bills, Parent Acts, the Hindu Marriage Act, 1955, The special Marriage Act, 1954, Official Secrets Act, 1923, Code of Civil Procedure, 1908, Code of Criminal Procedure, 1973, The Constitution of India, The Public Servants (Inquiries) Act, 1850, The Commission of Inquiry Act, 1952, The Judges (Inquiry) Act, 1968, The General Clauses Act, 1897, The Prevention of Corruption Act, 1988, The Prevention of Money-Laundering Act, 2002, The Delhi Special Police Establishment Act, 1946, Indian Penal Code, Income Tax Act, 1961, The Administrators-General Act, 1963, Parliamentary Debates etc. relevant to the subjects/Bills a very large number of written submissions received in response to Press Communiqué issued by the Secretariat in respect of Bills under examination of the Committee. The Section also made use of the materials provided by the concerned Departments/Ministries within the purview of the Committee and related information downloaded from various websites.

291 ANNEXURE -XIV (See Para 11.7)

Details of the Meetings of the Committee on Personnel and Law held during 2011:-

Sl. Date Duration Subject No. Hrs.-Mts. * 4.01.2011 0.25 To consider and adopt its Draft 45th Report on the Marriage Laws (Amendment) Bill, 2010. * 13.01.2011 0.16 To consider and adopt its Draft 45th Report on the Marriage Laws (Amendment) Bill, 2010. 1. 2.02.2011 1.05 (i) Hear views of the Secretary, Department of Justice on the Judicial Accountability Bill, 2010; (ii) To consider and adopt draft 45th Report on the Marriage Laws (Amendment) Bill, 2010. * 14.02.2011 2.10 Hear oral evidence of individuals/organizations on the Public Interest Disclosure and Protection to Persons Making the Disclosure Bill, 2010. * 15.02.2011 1.36 Hear oral evidence of individuals/organizations on the Public Interest Disclosure and Protection to Persons Making the Disclosure Bill, 2010. 2. 16.03.2011 1.50 Hear oral evidence of individuals/organizations on the Judicial Standards and Accountability Bill, 2010. 3. 6.04.2011 1.36 Hear the views of legal luminaries on the Judicial Standards and Accountability Bill, 2010. 4. 28.04.2011 1.00 (i) Presentation by the Attorney General of India on the Judicial Standards and Accountability Bill, 2010; and (ii) Clause-by-clause consideration of The Public Interest Disclosure and Protection to Persons Making the Disclosures Bill, 2010. 5. 11.05.2011 1.42 To consider and adopt draft 46th Report on The Public Interest Disclosure and Protection to Persons Making the Disclosures Bill, 2010. 6. 1.06.2011 1.09 (i) Hear oral evidence of Shri Parag P. Tripathi, Additional Solicitor General of India on the Judicial Standards and Accountability Bill, 2010. (ii) In house discussion on the Judicial Standards and Accountability Bill, 2010. 7. 15.06.2011 0.55 (i) Make obituary reference to the passing away of Shri Bhajan Lal, Member of the Committee; and (ii) Hear the Secretary, Department of Personnel & Training on The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill, 2011. 8. 8.08.2011 1.18 To consider and adopt draft 47th Report on the Judicial Standards and Accountability, Bill 2010. 9. 10.08.2011 2.30 (i) Hear presentation by the Secretary, DoPT on the Lokpal Bill, 2011; and (ii) Hear oral evidence of Shri Anna Hazare, Shanti Bhushan, Prashant Bhushan and Arvind Kejriwal on the Lokpal Bill, 2011. 10. 25.08.2011 0.29 (i) To consider and adopt draft 47th Report on the Judicial Standards and Accountability, Bill 2010; and (ii) Decide the date of presentation of the Report and authorize the Members to present/lay in both the House of Parliament. * No quorum attained.

292 Sl. Date Duration Subject No. Hrs.-Mts. 11. 23.09.2011 3.42 The Committee to hear oral evidence of the following officials/experts on the Lokpal Bill, 2011:— (i) Smt. Aruna Roy, Member, National Campaign for People's Right to Information. (ii) Sh. Jayaprakash Narayan, President, Lok Satta Party, Hyderabad. 12. 24.09.2011 5.33 The Committee to hear oral evidence of the following on the Lokpal Bill, 2011: — (i) Sh. Jayaprakash Narayan, President, Lok Satta Party, Hyderabad. (ii) Sh. Ashok Kumar Parija, Chairman, Bar Council of India. (iii) Sh. Pratap Bhanu Mehta, President, Centre for Policy Research, New Delhi. (iv) Sh. Harish N.Salve, Senior Advocate, Supreme Court of India. (v) Dr. , President, Indian Justice Party. 13. 01.10.2011 4.00 The Committee to hear oral evidence of the following on the Lokpal Bill, 2011: — (i) The Central Vigilance Commissioner. (ii) The Director, CBI. 14. 13.10.2011 2.45 The Committee to hear oral evidence of the following on the Lokpal Bill, 2011: — (i) Justice M.N. Venkatachalaiah, Former Chief Justice of India. (ii) Justice J.S. Verma, Former Chief Justice of India. 15. 14.10.2011 2.20 The Committee to hear oral evidence of the following on the Lokpal Bill, 2011: — (i) Representatives of the Confederation of Indian Industry; (ii) Representatives of Federation of Indian Chambers of Commerce and Industry; and (iii) Representatives of the Associated Chambers of Commerce & Industry. 16. 21.10.2011 4.41 (i) Hear oral evidence of select individuals/organizations who have expressed their desire to appear before the Committee on the Bill; and (ii) Hear oral evidence of Sh. T.N.Ninan, Chairman, Editors Guild of India, and Editorial Director, Business Standards, on the Bill. 17. 03.11.2011 2.38 (i) Hear oral evidence of representatives of Civil Society led by Shri Anna Hazare; and (ii) Hear oral evidence of the representatives of NSUI, Delhi. 18. 04.11.2011 4.23 Further interaction with the representatives of Civil Society led by Shri Anna Harare. 19. 14.11.2011 1.50 In-house discussion on Lokpal Bill, 2011. 20. 15.11.2011 2.00 In-house discussion on Lokpal Bill, 2011. 21. 24.11.2011 0.31 In-house discussion on Lokpal Bill, 2011. 22. 30.11.2011 2.26 In-house discussion on Lokpal Bill, 2011. 23. 1.12.2011 2.05 In-house discussion on Lokpal Bill, 2011. 24. 7.12.2011 0.20 Consideration and adoption of the draft Report on the Lokpal Bill, 2011.

293 CHAPTER-XII COMMITTEE ON SCIENCE & TECHNOLOGY, ENVIRONMENT & FORESTS

I. Composition of the Committee

12.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

Dr.T. Subbarami Reddy –– Chairman

RAJYA SABHA 2. Shri Janardan Dwivedi 3. Shri Anil H. Lad 4. Shri Rajiv Pratap Rudy 5. Dr. Chandan Mitra 6. Shri Saman Pathak 7. Shri Paul Manoj Pandian 8. Shri Jabir Husain 9. Dr. Barun Mukherji 10. Prof. M.S. Swaminathan

LOK SABHA 11. Shri K.C. Singh Baba 12. Dr. Mirza Mehboob Beg 13. Shri Udayanraje Bhonsale 14. Shri P.C. Chacko 15. Shri Ninong Ering 16. Shri A. Ganeshamurthi 17. Shri D.V. Sadananda Gowda 18. Shrimati Kaisar Jahan 19. Dr. Charan Das Mahant 20. Shri Arjun Ram Meghwal 21. Shri Jayaram Pangi 22. Shri Gajendra Singh Rajukhedi 23. Shri S.S. Ramasubbu 24. Shri Francisco Sardinha 25. Shri Balakrishna K. Shukla 26. Dr. Rajan Sushant 27. Shri Pradeep Tamta 28. Shri Bibhu Prasad Tarai 29. Shri Mansukhbhai D. Vasava 30. Shri Akhilesh Yadav 31. Prof. Ranjan Prasad Yadav

294 12.2 The Committee was re-constituted on 31st August, 2011 with the following composition:-

Dr.T. Subbarami Reddy –– Chairman

RAJYA SABHA 2. ♦Shri Janardan Dwivedi 3. Shri Anil H. Lad 4. Shri Rajiv Pratap Rudy 5. Dr. Chandan Mitra 6. Shri Saman Pathak 7. Shri Paul Manoj Pandian 8. Shri Jabir Husain 9. Dr. Barun Mukherji 10. Prof. M.S. Swaminathan

LOK SABHA 11. Smt. Bijoya Chakravarty 12. Shri Ninong Ering 13. ≠Vacant 14. Smt. Kamla Devi Patle 15. Shri Abdul Rahman 16. Shri Gajendra Singh Rajukhedi 17. Shri S.S. Ramasubbu 18. Shri Jagdish Singh Rana 19. Dr. Anup Kumar Saha 20. Shri Cosme Francisco Caitano Sardinha 21. Shri 22. Dr. Rajan Sushant 23. Shri Pradeep Tamta 24. Shri Mansukhbhai Dhanjibhai Vasava 25. Shri Akhilesh Yadav 26. Prof. (Dr.) Ranjan Prasad Yadav 27. •Shri Kristapa Nimmala 28. Vacant 29. Vacant 30. Vacant 31. Vacant

II. Subject selected for examination 12.3 The Committee deliberated on the various aspects of the functioning of the different Ministries/Departments under its purview and at its meeting held on 30th September, 2010 selected the subject matter pertaining to "Pollution" for consideration.

III. Constitution of Sub-Committees 12.4 During 2011, no Sub-Committee was constituted. IV. Review of Work Done (a) Sittings of the Committee

♦ Shri Janardan Dwivedi re-nominated w.e.f. 2nd February, 2012. ≠ Shri Prataprao Ganpatrao Jadhav ceased to be a Member of the Committee w.e.f. 3rd January, 2012 on his resignation from the Membership of the Committee. • Nominated w.e.f. 25th November, 2011. 295 12.5 During the year 2011, the Committee held 15 sittings lasting for 33 Hours and 18 minutes. A Statement showing the dates of sittings of the Committee held, the duration of the sittings and the subjects discussed are given in Annexure-XV. (b) Study Visits 12.6 The Committee undertook three study visits during the year 2011, the details of which are given in the following table: –– Sl. Dates of Place Visited Subjects No. Visits

1. 14th to 19th Hyderabad, Mumbai and (i) Interaction with the senior officials of the Goa State government of respective States on February, 2011 pollution mitigation measures taken by them.

(ii) The working of Indian National Centre for Ocean Information Services, Hyderabad (M/o Earth Sciences); Bhabha Atomic Research Centre, Mumbai (D/o Atomic Energy) and National Centre for Antarctic & Ocean Research(M/o Earth Sciences) and National Institute of Oceanography (D/o Scientific and Industrial Research) at Goa.

2. 17th to 22nd July, Mumbai, Jamnagar, (i) Interaction with the representatives of the 2011 Mount Abu and Udaipur Public and Private Sectors Oil Companies at Jamnagar and Mumbai on pollution mitigation measures taken by them.

(ii) The working of Infrared Observatory and Solar Observatory Centre at Mount Abu (D/o of Space).

3. 16th to 22nd Mumbai, Bangalore and (i) Interaction with the representatives of the October, 2011 Vishakhapatnam Public Sector Oil companies at Mumbai, Bangaluru & Vishakhapatnam and Steel & Power Companies at Vishakapatnam on pollution mitigation measures taken by them. The Committee also interacted with the representatives of the Naval Dockyard and Vishakhapatnam Shipyard & Port on pollution control measures taken by them.

(ii) Interaction with the senior government officials of the State governments of Karnataka & Andhra Pradesh on pollution mitigation measures taken by them.

(iii) Working of the ISRO Satellite Centre and ISRO head quarter (D/o Space) at Bangaluru.

V. Reports Presented 12.7 During 2011, the Committee did not present any reports to the House. 296 VI. Secretariat

12.8 The Committee Section (S&T) headed by a Deputy Director constitutes the Secretariat of the Committee. An Additional Secretary, a Director and a Joint Director remained in-charge of the Branch.

12.9 To assist the Committee in its work, material received from the Ministries/Departments/various non- government organizations and individuals was studied from which points were culled out. The questionnaires for written replies/evidence were also prepared for the use of the Committee.

12.10 The work relating to consideration of the subject taken up by the Committee was undertaken.

12.11 The Secretariat also studied material like Parliamentary Debates, Answers to Parliamentary Questions, Budget Estimates, Five Year Plan Documents, Books, Journals, CAG reports, newspapers etc. relevant to the subjects under examination of the Committee.

297 ANNEXURE- XV (See Para 12.5)

Details of the sittings of the Department-related Parliamentary Standing Committee on Science & Technology, Environment & Forests during the year 2011

Sl. No. Date of Meeting Duration Subject Hrs. Mts.

1. 19.01.2011 1.50 Oral evidence of Secretary, Ministry of Environment & Forests on the aspects relating to Coastal Regulation Zone. 2. 02.02.2011 2.00 Oral evidence of Secretary, M/o Power on the "Environmental aspects and impact of power generation in the country". 3. 05.04.2011 2.30 Meeting with delegation of French Parliamentary Group on space.

4. 19.04.2011 3.00 Meeting with Russian Parliamentary Delegation from the State Duma Committee on Science & Science Intensive Technologies. 5. 09.05.2011 1.49 Steps taken to control pollution by PSUs falling under the Petroleum & Natural Gas Ministry. 6. 30.05.2011 1.37 Oral evidence of Secretary, M/o Petroleum and natural Gas and the representatives of the Public Sector Units (PSUs) & Major Private sector companies/organisations on the "Steps taken to Control Pollution by Public Sector Undertakings (PSUs)/Private Companies in the field of Petroleum and Natural Gas". 8. 30.06.2011 2.10 Oral evidence of the Secretary, Ministry of Coal on the 'Environmental issues in Coal Sector. 9. 28.07.2011 3.00 Oral evidence of the Secretaries Ministry of Shipping, Ministry of Civil Aviation and Chairman, Railway Board on 'Environmental issues in Railways/Civil Aviation sectors and Shipping sector.’ 11. 27.09.2011 2.00 Oral evidence of the Secretary, Ministry of 'Environmental and Forests on 'Functioning of Pollution Control Boards & other issues'. 12. 14.10.2011 2.00 Oral evidence of the Secretary, Ministries of Coal and Environment & Forests on 'Environmental issues in Coal Sector'.

298 Sl. No. Date of Meeting Duration Subject Hrs. Mts. 13. 16.11.2011 3.18 Oral evidence of the Secretary Dr. Srikumar Banerjee, Secretary, Department of Atomic

Energy and Chairman, Atomic Energy Commission, on 'The Nuclear Safety Regulatory Authority Bill, 2011'.

Oral evidence of the Secretaries

Shri A.K. Upadhayay, Secretary, Ministry of Road Transport and Highways, Dr. Syed Nasim Zaidi, Secretary, Ministry of Civil Aviation and Shri Shekhar Agarwal, Secretary, Department of Defence Production on 'environmental issues in these sectors' 14. 17.11.2011 4.16 Oral evidence of the Secretaries, Shri P. Uma Shankar, Secretary, Ministry of Power and Shri Pradeep Kumar Mishra, Secretary, Ministry of Steel on 'Environmental issues in these sectors' 15. 09.12.2011 1.30 Dr. Syed Nasim Zaidi, Secretary, Ministry of Civil Aviation and Shri S. Vijay Kumar, Secretary, Ministry of Mines on Environmental issues in these sectors. Meeting with the Chinese delegation of environmental Protection and Resources Conservation Committee of the National People's Congress.

299 CHAPTER-XIII COMMITTEE ON TRANSPORT, TOURISM AND CULTURE I. Composition of the Committee 13.1 The Committee was constituted on 31st August, 2010 and continued till 30th August, 2011. The Committee consisted of the following members:—

£ Shri Sitaram Yechury — Chairman Rajya Sabha 2. Shri Ramdas Agarwal 3. Shri Shadi Lal Batra 4. Shri Narendra Kashyap 5. Shri Pyarimohan Mohapatra 6. Shri Syed Azeez Pasha 7. Shri Thomas Sangma 8. Shri 9. Prof. Saif-ud-Din Soz 10. Shri Vikram Verma Lok Sabha 11. Yogi Aditya Nath 12. Shri Avtar Singh Bhadana 13. Shrimati Bhavana Gawali Patil 14. Shri Mahesh Joshi 15. Shri P. Karunakaran 16. Shri Jose K. Mani 17. Shrimati Ranee Narah 18. Shri Rajaram Pal 19. Shri Bal Kumar Patel 20. Shri Nama Nageswara Rao 21. Shri S.D. Shariq 22. Shri Madan Lal Sharma 23. Shri Dushyant Singh 24. Shri Rakesh Singh 25. Shri Shatrughan Sinha 26. Shri K. Sugumar 27. Shri Kabir Suman 28. Shri Anurag Singh Thakur 29. *Vacant 30. #Vacant 31. @Vacant

£ Consequent upon expiry of the term of Membership of Rajya Sabha, Shri Sitaram Yechury ceased to be a Member of the Committee w.e.f. 18th August, 2011 and re-nominated on 19th August, 2013. * Vacancy caused due to inclusion of Shri K.C. Venugopal in the Council of Ministers w.e.f. 19th January, 2013. # Vacancy caused due to inclusion of Shri V.Kishore Chandra S. Deo in the Council of Ministers w.e.f. 12th July, 2013. @ Vacancy caused due to inclusion of Shri Jitendra Singh in the Council of Ministers w.e.f. 12th July, 2013.

300 13.2 The Committee was re-constituted on 31st August, 2011 with the following composition:-

Shri Sitaram Yechury — Chairman Rajya Sabha

2. Prof. Saif-ud-Din Soz 3. Shri Satish Sharma 4. Shri Shadi Lal Batra 5. Shri Ramdas Agarwal 6. Shri Vikram Verma 7. Shri Narendra Kashyap 8. Shri Thomas Sangma 9. Shri Pyarimohan Mohapatra 10. Shri Syed Azeez Pasha Lok Sabha 11. Yogi Adityanath 12. Shri Avtar Singh Bhadana 13. Shrimati Tabassum Hasan 14. Shri Mahesh Joshi 15. Shri Hassan Khan 16. Dr. Kruparani Killi 17. Shri Jose K. Mani 18. Dr. Sanjeev Ganesh Naik 19. Shrimati Jaya Prada Nahata 20. Shrimati Ranee Narah 21. Shri Rajaram Pal 22. Shri Bal Kumar Patel 23. Shri Rudramadhab Ray 24. Shri Madan Lal Sharma 25. Shri Dushyant Singh 26. Shrimati Meena Singh 27. Dr. Raghuvansh Prasad Singh 28. Shri Rakesh Singh 29. Shri Shatrughan Sinha 30. Shri Anurag Singh Thakur 31.* Vacant

II. Subjects selected for examination

13.3 The Committee examined and submitted its report to the Parliament on the following subjects: 1. Functioning of National Museum; 1. Directorate General of Civil Aviation (DGCA)- Issues and Challenges ; 2. Helicopter Operations in India; 3. Modernisation of Major Ports; 4. Functioning of Sahitya Akademi, Lalit Kala Akademi, Sangeet Natak Akademi and National School of Drama.; and 5. Development of Tourism in North-Eastern Region. ______* Vacancy caused due to inclusion of Shri Ajit Singh in the Council of Ministers w.e.f. 18th December, 2011

301 III. Bills referred to the Committee

13.4 During the year, no Bill was referred to the Committee. However, the 161st Report on the Anti-Hijacking (Amendment) Bill, 2010 which was presented to Hon'ble Chairman, Rajya Sabha on the 18th October, 2010 was presented/laid on 1st March, 2013.

IV. Review of work done

(a) Sittings of the Committee

13.5 During the year the Committee held, in all, 9 meetings for 16 hours 38 minutes. A Statement showing the dates of sittings of the Committee held during the period under Review, the duration of the sittings and the subjects discussed are given in Annexure-XVI.

(b) Study Visits

13.6 The Committee undertook two study visits for a total number of fourteen days. Officers/Staff of the Secretariat accompanied them. The details of the visits are given below: —

Places visited Date Organisation Examined Subject

Guwahati, Aizawl, 10th to 15th February, Union Ministries of Tourism Development in Shillong & Agartala 2011 Tourism; Road Transport North Eastern States and Highways; Culture; Civil Aviation; and Airports Authority of India, NHAI/ BRO, ASI, Air India Ltd. ,Inland Waterways Authority of India, Governments of Assam; Mizroram, Shillong and Tripura

Goa, Chennai & Port 25th June to 2nd July, Governments of Goa and Development of Tourism Blair 2011 Tamil Nadu , in Goa, Tamil Nadu and representatives of Port Blair Andaman & Nicobar Island Administration Ministries of Tourism; Road Transport & Highways; Culture; Shipping and Civil Aviation along with Air India and Airports Authority of India

302 III. Reports presented 13.7 During the year under review, 12 reports were presented to the Parliament as detailed below:—

Sl. Report No. and Date of Subject No. presentation/laying in Rajya Sabha/Lok Sabha 1. 161 The Anti-Hijacking (Amendment) Bill, 2010 (1.3 2011) 2. 162 Action Taken by the Government on the recommendations/observations of (4.3. 2011) the Committee contained in its One hundred fifty fourth Report on Demands for Grants (2010-11) of the Ministry of Tourism 3. 163 Action Taken by the Government on the recommendations/observations of (4.3. 2011) the Committee contained in its One hundred fifty fifth report on Demands for Grants (2010-11) of the Ministry of Road Transport and Highways 4. 164 Action Taken by the Government on the recommendations/observations of (4.3. 2011) the Committee contained in its One hundred fifty sixth report on Demands for Grants (2010-11) of the Ministry of Shipping 5. 165 Action Taken by the Government on the recommendations/observations of (4.3. 2011) the Committee contained in its One hundred fifty seventh report on Demands for Grants (2010-11) of the Ministry of Culture 6. 166 Action Taken by the Government on the recommendations/observations of (4.3. 2011) the Committee contained in its One hundred fifty eighth report on Demands for Grants (2010-11) of the Ministry of Civil Aviation 7. 167 Functioning of National Museum (10.3. 2011) 8. 168 Directorate-General of Civil Aviation (DGCA)-Issues and Challenges (13.8. 2011) 9. 169 Helicopter Operations in India (13.8. 2011) 10. 170 Modernization of Major Ports (13.8. 2011) 11. 171 Functioning of Sahitya Akademi, Lalit Kala Akademi, Sangeet Natak (17.8. 2011) Akademi and National School of Drama 12. 172 Development of Tourism in North-Eastern Region (17.8. 2011)

VI. Summary of Recommendations

(a) 161st Report The Anti-Hijacking (Amendment) Bill, 2010 13.8 The Committee feels that the proposed amendment is the need of the hour and unavoidable in the heightened threat for such a daring crime. The Committee endorses the proposed amendment to provide for the capital punishment, apart from the hijackers, to the conspirators and abettors also who commit any of the acts referred to in Sub Section (1) of the Section 3 of the Anti-Hijacking Act, so that all those involved, directly or indirectly, got the same punishment as the hijackers. The Committee notices that the proposed amendment in Section 4 of the Principal Act was not clear whether the provision of death penalty will be applicable to only those hijackers who kill hostages/security men or to 13.9 The Committee recommends that death penalty must be made applicable to those offenders whose action results in the death of hostages/security men during the act of hijacking. 13.10 The Committee is not quite convinced by the explanation given by the Ministry of Civil Aviation. It notes that the definition of aircraft movement from door-closure to door-opening, does not include the forced entry into aircraft and its take-over when the aircraft is on the taxiway at the airport with or without passengers or when pre-flight checking of the aircraft is in progress. The Committee is of the view that the definition of hijacking needs to be widened to include such situations also.

303 13.11 The Committee notes that the compensation under civil law is time-taking involving lot of litigation and procedures. The Committee feels that when we have a stand alone legislation for hijacking, it should be appropriate to include all the aspects related or incidental to the Act of hijacking in this legislation itself. The compensation, no doubt, should be an integral part of it. The Committee, therefore, recommends that the Ministry of Civil Aviation should consider including necessary provisions to provide for compensation in the ‘Anti-Hijacking Act, 1982’. 13.12 The Committee recommends that these two aspects need to be examined thoroughly in consultation with the Ministry of Law and Justice and other experts/agencies with a view to incorporating the suggestions of the Committee relating to the definition of hijacking and provisions for compensation appropriately in the Bill itself to make it comprehensive. 13.13 The Committee recommends that the Government should consider having such a legislation to deal with taking control forcefully of other modes of transport and provide for the punishment to the offenders and compensation to the victims of such hijacking. (b) 162nd Report Action Taken by the Government on the recommendations/observations of the Committee contained in its One hundred fifty fourth Report on Demands for Grants (2010-11) of the Ministry of Tourism 13.14 The Committee is concerned over the fact that many of the projects undertaken by the ITDC were lagging behind the schedule. The Committee may be apprised of the status of illumination of the monuments and the number of visitors during Commonwealth Games 2010. 13.15 The Committee recommends that assistance for more training institutions may be extended to Universities in other parts of the country also so that the benefit of this sector may be ensured throughout the country. There is a need to encourage the Universities/Institution across the country to offer courses on hospitality sector. 13.16 The Committee notes the reply and reiterate its recommendation that Ministry of Tourism should also come forward to provide financial assistance to institutions and universities for starting foreign language courses/imparting training in foreign languages. 13.17 The Committee suggests that in addition to the steps taken by the Ministry to make the website more user friendly, a software to calculate the approximate time taken by Air, Road and Rail should be got developed and be provided in the website so that the tourists could plan their journey accordingly. Moreover, link to official Railways and Indian Airlines websites, link to helpline numbers of the particular area authorities, etc. will be more beneficial to the travellers. 13.18 The Committee recommends that there should be a monitoring mechanism to ensure that above guidelines are being followed by the hoteliers, etc. after the initial approval/classification of their hotels. 13.19 The Committee hopes that the Ministry of Tourism would actively engage the State Governments to develop tourism infrastructure. 13.20 The Committee recommends that the issues taken up with other Ministries/Department should be followed in a time bound manner. (c) 163rd Report Action Taken by the Government on the recommendations/observations of the Committee contained in its One hundred fifty fifth report on Demands for Grants (2010-11) of the Ministry of Road Transport and Highways 13.21 The Committee recommends that Ministry of Road Transport and Highways should take continuous efforts to procure Utilization Certificates from the states in time so that allocation of funds under the CRF scheme to the states is not affected. The Committee also hopes that the prestigious Mughal Road project in Jammu and Kashmir would be implemented at the earliest. 13.22 The Committee-feels that process of environmental clearance for road projects should be streamlined so that National Highways projects do not take much time from conceptualization to actual implementation since these projects require a massive investment. The Committee reiterates its recommendation that the

304 Ministry of Road Transport and Highways should obtain the environmental clearance before finalizing or awarding the cost of project, not vice-versa.

13.23 The Ministry has pointed out the mechanisms to fight corruption in road projects. The Committee, however, feels that it is due to the ineffectiveness of the existing mechanism the corruption is prevalent in road projects. The Committee, therefore, recommends that the existing mechanism to prevent corruption, in road projects may be reviewed and more effective mechanisms may be put in place.

13.24 The Committee observes that the shortfalls in physical achievements are perceptive which shows poor progress. The Committee, therefore, is of the opinion that involvement of local authorities/state governments and coordination between various agencies will definitely play a positive role in completing road projects within the scheduled time.

13.25 The Committee hopes that with the implementation of B K Chaturvedi Report on the bidding processes for road projects, implementation of National Highways Development Project will become hassle free to the maximum extent. Roads of Inter-State Connectivity and Economic Importance The Committee hopes that the Ministry will pursue with the State governments for the speedy implementation of sanctioned projects under the Economic Importance and Inter-State Connectivity road schemes.

13.26 The Ministry has clarified that there is no authorized toll plaza on NH-62, the Committee apprehends that there may be illegal toll plazas on NH-62, which are not authorized by any Government agencies. The Committee, therefore, recommends that the Ministry may take appropriate action to ensure that illegal toll plazas, if any, are removed immediately. Special Programme for Development of Roads in the Leftwing Extremism (LWE) affected Areas & Programme for Development of Vijayawada - Ranchi Road. The Committee hopes that re--tendering process and appointment of monitoring committees should be expedited to ensure that the project materializes as per schedule.

13.27 Maintenance and repairs are as important as that of construction of roads and keeping the roadworthiness’ of roads is an important aspect. The Committee feels that there is an urgent need for allocation of more money to the Ministry under this head and hopes that the Ministry will take up with the Planning Commission vigorously so that adequate funds are allotted for the next year.

13.28 The Committee hopes that the Ministry should take up the strengthening of public transport system in the country vociferously with the State governments to encourage the wider use of public transport rather than the private transport which had already made Indian roads as chaotic and polluted ones.

13.29 The National Road Safety and Traffic Management Board Bill 2010 was introduced in the Lok Sabha on the 4th May, 2010 and referred to this Committee for examination and report. The Committee has already submitted its 160th Report on the National Road Safety and Traffic Management Board Bill 2010 and made various recommendations to amend the Bill. It seems that the Ministry of Road Transport and Highways is oblivious to those developments and given a reply to the recommendation of the Committee in a perfunctory manner. The Committee recommends that before taking any decision the Bill, the Government should take into account the recommendations made by the Committee.

13.30 The process of evolving an effective dispute redressal mechanism may be put in place at the earliest and the concerned committees may be asked to expedite it.

13.31 The Committee reiterates the need for the concerted coordination mechanism between all the agencies for the speedy implementation of highway projects especially that of State governments which play a vital role in getting required land for the projects.

13.32 The Committee feels that road safety sector should be given due priority in the coming years with an enhanced allocation for this sector.

305 (d) 164th Report Action Taken by the Government on the recommendations/observations of the Committee contained in its One hundred fifty sixth report on Demands for Grants (2010-11) of the Ministry of Shipping 13.33 The Committee hopes that the Ministry of Finance will look into granting the infrastructure status to Shipping Sector and it recommends that the Ministry of Shipping should pursue the matter to achieve the result in a time bound manner. The action taken in this regard and the results achieved may please be communicated to the Committee. 13.34 The Committee notes that Ministry of Shipping has simply forwarded the reply of the Shipping & Port Wing as if they are separate entities. The Committee desires that details may be given separately for funds but there should be coherence as the reply should be for shipping sector as a whole. 13.35 The Committee is of the opinion that in view of increasing number of private ports, the performance of the PSU ports needs to be looked into and necessary support be provided. The Committee may be informed about the recommendations of the high level committee for increasing port efficiency and the action taken by the Government thereon. 13.36 The Committee is of the view that the rate of cargo handling capacity growth is far greater in the case of private ports than that of Major Ports. The Major Ports should get adequate attention and policy support from the Government to improve their efficiency and competency. 13.37 The Committee desires to know the major decisions arrived at and executed by the MSDC. Lack of adequate and effective coordination between the State Sector Ports and Major Ports is conspicuous. The Committee feels that only through a co-ordinated and prompt action, the port sector could sustain in this era of globalization and privatization and efforts may be made in this direction. 13.38 The Committee is at dismay to note that the Ministry has not given any concrete steps to protect the Indian Shipping Industry. The Committee, therefore, reiterates recommendation that while considering the demand of foreign vessels for cargo shipping, the interests of the Indian Shipping Industry should be fully protected. 13.39 The Committee is of the opinion that keeping in view the various deficiencies pointed out to the Committee from time to time, further planning for expansion of the Indian Maritime University need to be relooked and operationalized. 13.40 The Committee is surprised to know that Ministry of Defence did not respond despite repeated requests from the Ministry of Shipping. As a result the amount lapsed. The Committee would like to know the reasons from the Ministry of Defence. 13.41 The Committee reiterates its recommendation that the Central Government should continue to reimburse the entire cost of dredging at Haldia river system and the related channels as the Kolkata port is not in a position to bear the cost. The recommendation of the Committee may be brought to the notice of Cabinet and it may be persuaded to take a favourable decision to continue the 100% reimbursement of the dredging cost of Haldia river system and related channels. 13.42 The Committee also recommends that the storage facilities in Major Ports need not only be increased but also to be made more clean and secure as much of the cargo should not be in the open for long time. (e) 165th Report Action Taken by the Government on the recommendations/observations of the Committee contained in its One hundred fifty seventh report on Demands for Grants (2010-11) of the Ministry of Culture 13.43 The Committee notes the reply and desires that the Committee may be apprised of the findings of the Manpower Management and Planning Consultants as and when received. It would also like to know about the fate of the proposal for engaging 1000 ex-servicemen as Monument Attendants. 13.44 The Committee is dismayed to see the reply received from the Ministry of Culture. Perhaps the Ministry of Culture did not care to read the reply before furnishing it to the Committee. They have simply forwarded the comments of ASI without taking any action on the recommendation of the Committee. The Committee, therefore, recommends that immediate action may be taken by the Ministry of Culture to fill up the vacant posts in ASI.

306 13.45 The Committee may be apprised of the vacancies in different circles and the number of posts filled so far there. The Committee is fully aware that in heritage protection/conservation several agencies and bodies are involved at different levels. The Committee had recommended the Ministry of Culture to ensure a close coordination amongst all of them. Currently, there is no mechanism in place for regular communication, coordination and cooperation amongst these bodies. The Committee recommends that the Ministry of Culture should take appropriate action to accomplish the objectives. 13.46 The Committee may be apprised of the details of the restructuring and the time to be taken in the restructuring of Horticulture wing. 13.47 The Committee notes its dismay that the Government has not responded to the maintenance aspect of the monuments which was the major thrust of its recommendation. The Committee, therefore, reiterates its recommendation and hopes that with amended Act, ASI will be able to deal with encroachment problem more effectively. The Committee desires that action should be formulated to save the Jaisalmer Fort in a time bound manner. 13.48 The Committee notes the reply and feels that Western region has no Centres or Sub-Centres. It may be considered seriously in first stance. 13.49 The Committee may be apprised of the reasons for not getting the administrative approval for carrying out construction works on purchase of some property from ASI and other competent authorities and by when the work would be complete. 13.50 The Committee recommends that keeping in view the weather conditions, the Museums should be opened in evening also by deputing more staff.. 13.51 The Committee recommends that the Ministry should not delay the opportunity from British Council to educate museum professional and get the benefit from their expertise. 13.52 The Committee is also aware that although Delhi Public Library(DPL) has more than 50 branches but it caters mainly to the areas in New Delhi. The Community centres in various areas can be used for mobile DPL vans which can be on rotation basis. (f) 166th Report Action Taken by the Government on the recommendations/observations of the Committee contained in its One hundred fifty eighth report on Demands for Grants (2010-11) of the Ministry of Civil Aviation 13.53 The Committee feels that the measures taken by the management of Air India to bring back its lost glory can be fruitfully achieved only after basic issues related to merger of erstwhile Air India and Indian Airlines have been sorted out. The Committee is of the opinion that by adopting prudent business practices: it can face the onslaught of the private Low Cost Carriers. The Committee feels that the recent withdrawal of services from profitable routes is not going to augur well for the growth of Air India. 13.54 The rationale given by the government for granting more and more bilateral to private sector is not convincing especially when the Air India flights are operating with low capacity and making losses on international routes. The Committee recommends that the Government should differentiate between the private airlines and Air India a Public Sector Undertaking supported by the Government, occasionally by granting thousands of crores of money for its functioning. 13.55 The Committee is of the opinion that development/upgradation of airports in North-Eastern Region should be given priority by Airports Authority of India as air connectivity to this region with immense tourism potential can hardly be further delayed. 13.56 The Committee hopes that Pawan Hans Helicopter Limited will play a decisive role in promotion of tourism in the country. The Committee recommends that as suggested by the Ministry, Pawan Hans Limited may explore the possibility to start helicopter services in Bekal and Thekady in Kerala. 13.57 The Committee while appreciating the efforts taken by IGRUA to overcome the shortage of trained pilots feels that the curtailment of duration of course from 18 months to 16 months should not be at the cost of quality of training imparted to pilots. 13.58 The Committee hopes that with the induction of new age aircrafts into its fleet Air India should be in a position to increase its seat capacity especially in north-eastern sector and Delhi-Srinagar and Delhi-Leh sector.

307 The Committee is of the opinion that Air India can draw more benefits from the LTC offered by the Central Government for its employees for North-eastern and Srinagar/Leh sectors by mobilizing its resources efficiently. 13.59 The Committee hopes that the Ministry would revisit the issue of shortage of manpower in civil aviation sector and take remedial actions in a time-bound manner. (g) 167th Report Functioning of National Museum 13.60 The Committee is at loss to note that out of 26 galleries in National Museum, 7 remained closed for 3 to 4 years, Manuscript Gallery being closed for 8 years from 2003 and finds that the National Museum despite having a large building and a huge collection in its possession, several of its galleries are closed mainly due to lack of adequate manpower, essential logistics and proper maintenance. The Committee is also surprised to note that there are no laid down guidelines with regard to the taking up of renovation of galleries of museums and the work is taken up only when the problem has reached an alarming stage which finally results in closure of galleries. The Committee recommends the Ministry of Culture to explore the techniques and practices available world-over for renovation of galleries and museums. The Committee recommends that the Government should frame guidelines for renovation of museums in the country, in a fixed time schedule. The guidelines may consist of details as to when and how the galleries will be taken for renovation with a view to ensure that display of the collections continues without interruption. 13.61 The Committee notes the problems faced in maintaining the building of National Museum as CPWD, it appears has not been able to do the job to the satisfaction of museum authorities. The Committee recommends that a dedicated wing may be created in the CPWD which can handle the work of maintenance of buildings of cultural institutions like the National Museum. The Committee also recommends that the performance of the CPWD may be closely monitored and in case things do not improve the maintenance of the building of National Museum and its various civil and electrical works may be taken away from CPWD and handed over to some specialized and competent agencies preferably under the government for better maintenance and upkeep of the Museum building. 13.62 The museums have highly valuable and precious collections which form part of our rich and diverse heritage. The Committee, therefore, recommends to make use of the best technology available to safeguard the museum to prevent theft or unwanted incidents. The Committee hopes that the matter should be taken up with the investigative agencies to get things expedited and to ensure that the gallery closed due to pending inquiry into theft be opened at the earliest. 13.63 The Committee notes that out of 2,06,000/- collections with the National Museum, only 15,681, constituting 7.61 per cent of total collection, were on display. The Committee is not satisfied with the number as well as selection of items on display in the National Museum. The Committee recommends that a year long display-schedule may be drawn up and publicised widely showing, which of the artifacts will be on display when, so that people know this beforehand. It would enable them to plan the time of visiting the museum. In the summer vacations, time may be extended in the evening and the museum should be made more attractive/interesting to the students through creative audio-visual presentations. 13.64 The Committee expresses its concern about the fact that the Art Acquisition Committee of the National Museum has been defunct for the last 16 years affecting the addition of objects adversely. No justification for this can convince the Committee about this delay. The Committee recommends that reasons for this delay must be looked into and steps be initiated immediately to constitute the Art Acquisition Committee. 13.65 The Committee finds it hard to believe that no verification of artifacts kept in the Museum, had been done since 2003. The Committee expresses its concern about such a casual approach towards protection and upkeep of the valuable treasures of the nation. The Committee fears that when the verification process is taken up some of the objects may be reported missing. Lack of manpower given as reason for not undertaking the verification, is neither convincing nor acceptable. Help of professional agencies may have been taken for doing this verification. The Committee feels that the Ministry should have been more watchful and National Museum pro-active in this regard, which they have failed to do so. The proposal of digitization of art objects is a good effort but physical verification is required to account for the articles. The Committee recommends that the Government should make all out efforts to take up the process of verification of articles without further loss of time and to ensure that the process of verification is started soon and be done regularly in future.

308 13.66 The Committee finds that there is a minimal use of IT in the affairs of National Museum. The Paintings and Manuscripts for major part of the collection in possession of National Museum are very fragile and some of them are rarest of rare and one of its kinds and their frequent physical handling can cause irreparable damage to them. The Committee found that the museum not equipped to use digital and new media. Today in the digital age of internet, interactive games and computers, most museum are in need of drastic upgradation for this purpose. The Committee, therefore, recommends that, as a first step, digitization of objects, both for their conservation and for giving access to scholars, researchers and general public, through Internet and other means must be considered for expeditious implementation. 13.67 The Committee while visiting the Museum noted that the signage and the labels about the displays were unattractive and too small in size to see. Certain errors of translation in Hindi and those of typing were also noticed. The Committee recommends that immediate steps may be taken to make the signage and tags more visible and attractive to the visitors. 13.68 The Committee is happy to note that based on its earlier recommendations, the Government has delinked the selection of heads of cultural bodies including that of Director-General, National Museum from the purview of UPSC and adopted the procedure of search-cum-selection process. However, the Committee is surprised to note that the Government could not find suitable candidates for the post of Director-General and the National Museum, as a result, remained headless during the last many years which had a telling impact on all the activities of the National Museum. The Committee, therefore, recommends that the appointment of DG of National Museum should be handled at the highest level and the Government should take urgent steps to appoint a professional as the Director-General from among the museum experts. The Committee emphasizes the need to make the post of Director-General, National Museum more attractive by providing adequate autonomy, both administrative and financial, to avoid unnecessary delays in its urgent works. The Committee is of the view that there are many experts in this country who could have been persuaded to work for the betterment of this institution in the manner acceptable to them. 13.69 The Committee welcomes the creation of new posts of Additional Director-General and Joint Director- General. The Committee has, however, noted that the selection through UPSC is a rigid and time consuming procedure. The Committee, therefore, recommends that the posts of Additional Director-General and Joint Director-General may be kept outside the purview of UPSC selection process and instead the search-cum- selection process may be adopted. It should be ensured that the posts may be filled up within a period of three months. 13.70 The Committee finds that the plethora of recruitment rules and the lack of autonomy in decision making at the level of National Museum, are greatly affecting the functioning of the institution. The Committee recommends that National Museum may be made an independent autonomous body with all the inherent powers to administer its affairs including recruitment and staffing. The recruitment process of National Museum may be delinked from UPSC and Staff Selection Commission. The Museum may be authorized to devise its own procedures for selection of officers and staff the same way the central universities are recruiting their faculties and supporting staff. 13.71 The Committee also recommends that since the requirement of museums are specific, the appointing agency may be persuaded to keep a separate cadre for museology with transferable options in the other Government museums on deputation basis all over India. This will give exposure to all to work in other museums also and in their place of choice. 13.72 The Committee appreciates the efforts of the Ministry in setting up the Souvenir Shop. However, the Committee is of the view that publicity through print and electronic media is required to be given to the shop so that more people come to buy the products. Further, all the Government agencies/ PSU/ State Government Emporia / all offices of State and Central Government where memento/gifts are purchased may be informed of the products available in the shop and briefed through Bulletin/Brochure every month. Internet shopping may also be introduced to tap the potential market. 13.73 The Committee notes that the Ministry has taken some measures to comply with the recommendations of the Goswami Committee Report. However a lot needs to be done like setting up an "Advisory Board or a Committee" with specialists from fields of exhibition, gallery, collections management, presentation etc. so that they can pool their efforts and guide the curators and others in setting up the National Museum. The Committee recommends that the observations of the Goswami Committee should be taken in positive way and the Ministry should start implementing it without delay. 309 (h) 168th Report Directorate-General of Civil Aviation (DGCA)-Issues and Challenges 13.74 The Committee was at a loss to find that DGCA had a large number of positions lying vacant for years together due to prolonged procedure or non-availability of suitable candidates. As a result, so many positions lapsed making situation from bad to worse. Thus, their number came down from 250 to 145 posts during 2001- 2009, the period when aviation activities grew by leaps and bounds. 13.75 This shortage of manpower also includes pilots, aircraft maintenance engineers, air operation inspectors who play crucial role in oversight function of DGCA such as granting of approvals/certificates NOCs/licences for various critical activities including deciding airworthiness, maintenance/repair of aircrafts, standard of training institutes, competence of trainees, skill of pilots, and so many others. How efficiently DGCA was fulfilling these mandates with a highly depleted manpower could be anyone's guess? In such a situation, instances of obtaining Pilots Licenses on the basis of fake certificates should not come as surprise to anybody. 13.76 The Committee finds no justification for imposing a ban by Ministry of Finance on recruitment of staff for the last ten years in a sector that was undergoing an unprecedented growth and too crucial to our economic development. Although some steps were taken to recruit more staff during the last one year, but it took more than 8 years during this crucial period. The Committee really feels concern about such a state of affairs and it is not convinced by the explanation given in this regard. 13.77 There were 130 Group A posts of Airworthiness Officers, out of which only 1 officer was in position in the Directorate of Airworthiness to issue certificates of Airworthiness and supervises the work of 135 aircraft maintenance organizations which are supposed to carry out the job of aircraft maintenance in the country. Similarly, against the 43 Group A post of Air Safety Officer, there was not a single officer in the Air Safety Directorate which conducts the Safety Audit of the operator, maintenance agency, flying training institutes. The Directorate could conduct only 3 safety audits during 2010, which, the Committee feels, is not at all enough. India is considered to be one of the world powers in IT Sector. The Committee, however, surprised to note that there is no officer in Information Technology Division of the DGCA, though 5 posts of Group A officers, have been sanctioned. 13.78 The Committee is surprised to find that the Directorate of Licensing responsible for issuing licenses to airline pilots is working with just four Group A officers against the sanctioned strength of 26 officers. It was brought before the Committee that there is a large-scale corruption prevailing in the DGCA for issuing various kind of licenses, especially for pilots. 13.79 The Committee recommends that the entire licensing system of DGCA needs to be streamlined and made transparent by making it available in the public domain. The corruption of all forms should be eliminated from the functioning of DGCA and its various offices. There should be a separate body either a Directorate in DGCA or an outside agency for keeping strict vigil in this regard so that such instances do not recur at all. 13.80 The Committee recommends that number of officers/staff of DGCA should be as per DGCA's requirement for ensuring adequate aviation safety and security. The Committee feels that the recruitment process started by the DGCA should be completed on a fast track basis. The Committee also recommends that for this the de-linking of recruitment process from UPSC needs to be considered seriously. The Committee learnt that some times Airlines due to pressure tend to adopt shortcuts and thereby safety is ignored. The technical clearances are given to the aircrafts with minor defects to take off so that their normal schedules are not disrupted and airlines are not put to loss. At times technical personnel including pilots are put under pressure not to oppose the technical deficiencies, especially in case of chartered flights and those under the State governments flying VIPs. In view of so many accidents due to this, country has lost several precious lives including those of VIPs. The Committee, therefore, recommends that such technical personnel/pilots be provided adequate legal/administrative protection to decline to fly in the absence of technical, weather and other clearances. 13.81 Lack of adequate Air Traffic Controllers is another cause for concern who are eyes and ears of air traffic in the sky. The Committee emphasizes the need for strengthening of Air Traffic Control system which is overstrained due to obvious reasons. The Airports Authority of India should start the process of recruiting required number of ATCs on priority so that the over-worked ATCs could give their best.

310 13.82 Apart from that, the Airports Authority of India may be requested to strengthen the ATC operations by replacing the outdated equipments specially the radars by installing the advanced satellite based navigation systems in all the airports. Indian Meteorological Department may be requested for providing meteorological radars at the airports so that air services are not affected adversely due to cancellation, diversion and rescheduling of air services. 13.83 The Committee recommends that the Government should take immediate steps to implement satellite aided navigation systems and weather predictions, since India is a forerunner in space technology and one of the best reservoirs of scientific and technical manpower. 13.84 The Committee feels that the time has come to strengthen the DGCA by giving it adequate financial and administrative autonomy. The Committee was informed by the Ministry that there is a proposal to form a Civil Aviation Authority. However, it is not clear to the Committee whether the proposed authority would be parallel authority to DGCA or it will subsume the functions of DGCA. If the idea is to create a separate parallel authority, the Committee is of the view that it will be mere duplication of work and thus multiplication of agencies should be discouraged. If the proposed authority will subsume the DGCA, it should be amply clarified by the Government the extent to which the functions of the DGCA will be taken over by the proposed authority. 13.85 The Government should also come forward to publicize the reports of various inquiry committees set up so far to investigate accidents and the follow-up action taken on such reports so that the air travelers could easily know the dos and don’ts for a safer air journey. The Committee does not say that with the establishment of Civil Aviation Authority, the Indian skies would become safer. It, however, may take care many of the problems that DGCA is currently facing and which have been clearly brought out in this Report. In UK there is independent audit organization, Air Accident Investigation Board and Australian Transport safety Board in Australia which can be guiding models for this purpose. 13.86 Much in the face of such a claim by the Government, increasing instances of violations of safety norms, manipulation in obtaining various licenses and existence of sub-standard training institutes are indicative of serious malaise in the system. The Committee feels that the existing procedures and regulations need to be revisited with a view to minimizing the chances of any kind of manipulation. The Committee feels that with such things happening, the possibility of connivance of some people from within cannot be ruled out. We need to have a specialized agency to take stern action against the guilty. Message should go loud and clear that India is strict in its procedure and no laxity by anybody would be tolerated, if we were to regain the confidence of the travelling people. 13.87 The Committee feels that considering the large number of existing operators, maintenance agencies, flying training institutes etc. the new ones being set up, the frequency of various kind of inspections and audits undertaken by the DGCA may not be too frequent to have a deterrent effort. The Committee recommends that all such operators/ agencies, institutes may be subjected to safety audits within a fixed time frame to ensure that they are following all the regulations, guidelines etc. Strict penalties be prescribed for any manipulation, corruption, etc. in the agencies responsible for this. 13.88 The Committee noted that during the year 2010 most of the Airlines operating in the country had been overcharging the passengers by increasing the air fares unreasonably. The Committee recommends that an investigation may be conducted against all airlines and the excess amount they have collected by way of exorbitant passenger fares may be identified and those airlines found guilty may be penalized. The Committee also recommends that in future all the airlines may be asked to increase their fares only with the approval of DGCA. The recent initiative taken by DGCA asking the airlines to display the fares in their respective websites has not received much response from the travelling public. A transparent formula for pricing the air tickets may be evolved and implemented within three months. 13.89 The Committee had taken up the subject for examination more than a year ago on the presumption that the DGCA was severely handicapped in fulfilling its mandate and is not able to cope up with the growth of the civil aviation industry. The Committee feels sad to see its apprehensions coming true by the recent instances of obtaining pilot licences on fake documents and undue clearances/approvals given in some cases to training and maintenance institutions on extraneous considerations. Connivance of officials of the DGCA, including senior ones, in these activities is, in fact, the worst thing that can ever happen in the area of aviation security, that puts life of lakhs of gullible passengers to grave risk. Apart from this, recent disclosure about what has been going on in Directorate General of Civil Aviation has brought irreparable loss to our image in world aviation scenario.

311 The Government must do whatever it can to see that such things do not happen again and strictest possible action be taken against those involved, directly or indirectly. (i) 169th Report Helicopter Operations in India 13.90 The Committee observes that even after a period of almost six decades since its inception, the helicopter operations in India is still in a rudimentary stage as compared to that in the western countries in terms of existence of a separate regulatory mechanism, rules and regulations as well as necessary infrastructure specific to helicopters. The Committee found that currently, the helicopter operations i.e. rotary wing aircrafts are being governed by the set of rules, regulations and mechanism under the DGCA which are meant for the fixed wing aircraft. In view of significant differences between the two, the Committee feels that there is an urgent need to put mechanism, rules, regulations and the required infrastructure specific to the helicopter sector in place, without further delay. 13.91 The Committee also found that currently, helicopters are being used mainly for VIP operations and transporting people to offshore oil operations. The Committee feels that the Government has not taken enough steps for expansion of helicopter sector in India. The Committee is of the opinion that helicopter operations have to be expanded to such other areas as tourism, medical emergencies, disaster management, maintenance of law and order, etc. 13.92 In this connection, the Committee would like to make special mention about the use of helicopters in medical emergency. The Committee would like that a Feasibility Study may be got conducted by involving all the stakeholders, government as well as private, to promote the use of helicopters in those areas. 13.93 The Committee also feels that promotion of tourism to remote and inaccessible areas can be done by making helicopters services available for the tourists to such places. The Committee recommends that the Government should take steps to make heli-tourism more attractive and affordable by reducing cost of operation through fiscal incentives, lowering taxes on ATF, waiving off RNFC, rationalizing landing and parking charges after consultation with the State Governments. 13.94 In view of the great potential for helicopter travel in the country, urgent need for dedicated helicopter training organizations can hardly be over-emphasized. The existing training facilities, thus, are inadequate to meet the future requirements of the industry. 13.95 The Committee recommends that the Government should address the issue of shortage of helicopter pilots on priority since the industry is gaining momentum rapidly The Committee feels that the Government should appoint a Committee of experts to review the present system of examination and procedures for award of licenses to pilots. It may consider creating of national pool of independent examiners, standardize the syllabi, increase the frequency of examinations and rationalize the charges for skill tests. 13.96 The Committee further notes that for monitoring proficiency of pilots operating over 250 helicopters, DGCA is having four helicopter Inspectors on secondment basis from the industry. The Committee feels that efforts should be made to have more Inspectors who are type qualified and in current flying. In the longer term, the Committee feels that there is a need to have adequate number of Flight Inspectors with long experience to handle proficiency monitoring of pilots. While doing so, our future requirements should be kept in mind. 13.97 The Committee notes with concern the instances of forceful landing/take off of helicopters in low visibility, bad weather and even during nights, which are serious breaches of aviation security norms. It has been brought to the notice of the Committee that at times technical clearances are given to the helicopters with minor defects to take off. The technical personnel including pilots are put under pressure not to oppose these deficiencies due to commercial or other reasons. It happens mainly in the case of chartered helicopters and those under the State governments flying VIPs. Such violations of rules have led to fatal accidents losing several precious lives. Lack of proper maintenance and non-observance of operating manuals, mechanical failures and lack of required instruments have been found as the causes of these accidents. It points out towards the ineffectiveness of safety audit and mandatory inspections of the helicopters and other facilities for testing their airworthiness. The Committee recommends that technical personnel/pilots be provided adequate legal/administrative protection to decline to fly in the absence of mandatory technical, weather and other clearances. Some kind of penal provision may be considered against those putting such pressure on the pilots to fly without proper clearances. Conversely, the strictest actions be taken against those pilots/technicians who

312 violate these requirements even under some kind of duress. Their licences may be immediately cancelled if prime facie they appear to have done so. 13.98 For expanding the helicopter operations to the newer areas as has been suggested by the Committee elsewhere, India will have to have a number of heliports, vertiports and heli-routes in the country. The Committee also emphasizes the need for developing a network of helipads and heliports in and around metros as well as in the hilly and remote parts of the country. The Committee is of the opinion that a dedicated heliport wing may be established in the Airports Authority of India to oversee the development of heliports and vertiports and heli-routes in the country. 13.99 The Committee feels that a concerted coordination mechanism involving Union and State governments, meteorological department and other agencies should be evolved to make helicopter operations safer one. The existing Air Traffic Rules may be reviewed to eliminate delays in helicopter departures/arrivals from major airports. Flight routing may be made as direct as possible independent of fixed wing traffic to ease the congestion at the airports. 13.100 Since the LTC travellers now constitute a significant number, the Committee is surprised to find that under CCS (LTC) Rules, they are not allowed to travel by Helicopters. The Committee is of the view that LTC travellers should also be allowed to travel by helicopters and the matter may be taken up with the Ministry of Personnel, Public Grievances and Pensions for amendment of the LTC rules accordingly. 13.101 The Committee is surprised to note that around 120 aircrafts which might include helicopters were not capable of operating in hilly terrains and the operators of such aircrafts have been advised not to operate in such areas till the necessary instruments (ELTs conforming to 406 MHz) were fitted. Deadline given for this was 31- 3-2010. In such a situation, the Committee feels that the possibility of such aircrafts operating in hilly areas cannot be ruled out, particularly in view of the lax and inadequate monitoring in the sector. The Committee only hopes that these instruments would have been placed by the given date, and if not, all such aircrafts should be grounded and not allowed to fly until they have compiled with this. 13.102 The Committee has been informed by the Ministry that the main obstacle for the proper planning of the helicopter operations has been the lack of proper infrastructure with the State governments and they have been advised to build proper infrastructure with meteorological briefing and to follow the civil aviation requirements issued from the Union Ministry of Civil Aviation from time to time. The Committee is constrained to note that the Ministry of Civil Aviation has failed to ensure the cooperation and compliance from the State governments for helicopter operations. It, therefore, recommends that the Ministry may take up these issues with the concerned State governments proactively to get the needful done. (j) 170th Report Modernization of Major Ports

13.103 The Committee also finds that Major Ports in the country are not working 24X7. In some of the Ports like Mumbai substantial time is lost during shift changeover. The personnel of Custom Departments work only 5 days in a week. Besides, manual work and detailed scrutiny process by the custom department results in delay of evacuation of cargoes. The Committee is of the view that in order to avoid delays and achieving the highest level of efficiency, the port should work round the clock without any interruption. The Ministry of Shipping should take up the matter with the Ministry of Finance to ensure that the Customs personnel at the Ports work 24X7. The Committee also recommends that steps be taken to ensure that minimum or no time is lost during shift changeovers. 13.104 The Committee also recommends that the approach channel of all Major Ports of the country should be treated at par with national water ways and therefore funding for the same should be taken up by the Government of India. 13.105 The Dredging Corporation of India is the only public sector dredging company in the country and is a global player in the field of dredging. The Committee, however is constrained to note that the company has been given shabby treatment and forced to carry out certain commercial activities totally against the financial canons. The Committee also finds that certain work performance certificates were issued to private companies by DCI which resulted in loss of business to DCI later on. Already poaching in DCI has left it dry. The Committee was informed that many shore-based executives of DCI has resigned/left DCI and joined different private organisations in 2005-06. The Committee also finds that some higher officers after retirement joined the

313 Rival Dredging Companies. The Committee is afraid that some officials of DCI directly or indirectly are maintaining some sort of relation with the private companies and might have disclosed certain business secrets and key information to them leading to enormous losses to DCI. 13.106 The Committee is apprehensive of the fate of the DCI as it has been made a scapegoat in the SSC Project and in placing purchase order for third dredger. The Committee recommends that inquiry may be conducted to look into the affairs of the DCI, particularly the handing over of work to private dredging company through DCI, issuing of work performance certificate to private companies, making of payment to private companies without being reimbursed by SSC, placement of purchase order for third dredger by DCI and unsatisfactory repair of dredger by foreign companies. 13.107 The Committee observes that all the Major Ports in the country are having rail connectivity and the Ministry of Railways has taken up 8 projects to provide additional rail connectivity to the Major Ports in the recent past. The Committee is constrained to note that most of the projects are lagging behind the schedule. The better rail connectivity is very crucial for improving the efficiency of the Major Ports. The Committee recommends that the Ministry of Shipping should take up the matter with the Ministry of Railways to ensure that projects are implemented in a time bound manner. 13.108 The Committee recommends that high capacity rail loading equipment and efficient traffic regulation may be arranged for better cargo movement from the Port. The Committee also recommends that Railways should bring ‘dedicated trains’ rather than ‘mixed trains’ which only add to increase of work load due to inter- terminal trucking. Environment friendly stack yards and warehouses for the projected future traffic movement should be established. The efficiency of the present day rail service may be made in accordance with the developing needs of the services and shortage of engines while loading, may be met with in order to minimize the waiting periods of the wagons. 13.109 The Committee observes that road connectivity is not adequate to cater to the needs of the existing traffic in the Ports. Road widening and upgrading process are not up to the requirement of the current day development needs of the Port. The Committee recommends that road widening and other interlinking plans as proposed by the Ports need to be taken with the Ministry of RTH at the highest levels for its speedy completion. The Committee also recommends that the addition of infrastructure in the recent time should be taken into consideration while formulating the road connectivity upgradation projects to the Port 13.110 The Committee observes that Port Security is having utmost importance and all the concerned departments may be kept on vigil in this matter. The Committee is of the view that extended use of IT will supplement its effort of making in port and sea area safe and secure by tracking movement of suspected dangerous vessels. 13.111 The Committee came to know about the threats of various kinds to the Port personnel and property as also interference in their day-to-day functioning at port from local mafias/goons. The Committee takes serious view of the development and recommends that adequate security may be provided to port officials so that they can discharge their functions/duties without fear and interference. 13.112 The Committee notes that environmental pollution caused by trafficking of bulk cargos like iron ore, coal, sulphur, rock phosphate, crude oil, gas, fertilizers, chemicals, etc are very frequent in the Port areas. The sprinkling of water is carried out on dusty cargo but the problem of pollution has not been addressed satisfactorily. The Committee is of the view that laxity in taking adequate steps to check the pollution cast by port operations can prove to be expensive. The Committee would like to invite the attention of the Government to the media reports stating that Madras High Court has ordered Chennai Port Trust to move coal and iron ore out of Chennai Port to the Ennore Port. This move is likely to cause a loss of revenue amounting to Rs.250 crores annually and render 5000 workers jobless. It is also reported that stopping coal and iron ore handling by the Chennai Port may also affect supply to electricity generating units and cement plans in Tamil Nadu. The Committee is afraid that unilateral decision to shift these cargoes to Ennore may prove counter productive and benefit the private Ports as the stakeholders have other options and may move to private Ports. The Committee, therefore recommends that Government should come forward to help the Chennai Port to sort out the problems. The Committee hopes that the Government will take care of the interest of the 5000 employees likely to be affected by shifting the cargoes to Ennore Port and ensure that there will be no retrenchment as directed by the Hon’ble Court.

314 13.113 At present, environment clearance is to be obtained separately for each individual port project, which causes a lot of delay in the project implementation. The Committee is of the view that the issues related with the Ministries of Commerce, Environment & Forest, etc need to be discussed at the Ministry level so that a common policy for all the Ports could be formulated. Since the Environment and Forest Ministry is considering the individual cases separately because of the complex nature of the geographical distribution of the country, the cases could be taken up by the Ministry of Shipping for pursuing the matter. The Committee, therefore, recommends that within the port limits, Ports may be permitted to prepare Coastal Zone Management Plan (CZMP), taking into consideration the future construction/expansion requirements and also commitments if any, based on earlier environment clearances issued. The proposed new environment guidelines/norms, which are not in line with the earlier commitments should not be made applicable in case of existing Ports and the norms should be in such a way that they do not hamper the future development. Only in cases where Ports can spare green area, shall such norms be insisted upon; i.e, relaxations, exemptions of the guidelines/norms, on a case to case basis shall be permissible. 13.114 The Committee notes that thousands of acres of land is in possession of Major Ports and they are more known as ‘landlord Ports’. The Committee is however constrained to note that Major Ports are facing acute shortage of storage space which has affected cargo aggregation/evacuation. It also affects the discharge/loading of vessels. The Committee recommends that proper storage facility may be planned in such a manner depending on the type of cargo handled by the Port. Similarly such storage places could be equipped with direct cargo transfer conveyor belts so that the double handling of the same cargo could be avoided. The Committee recommends that additional space can also be created by demolishing redundant structures and that the un- cleared goods, warehouse activities which include unaccompanied baggage clearing etc. should be shifted to outer areas. 13.115 The Committee notes that inspection/testing facilities for imported food items/grains are highly inadequate at the Major Ports and getting the reports/certificates from the specialized laboratories located at a distant place takes more than two weeks time. The Committee therefore recommends that adequate number of food testing laboratories may be established in the premises of Major Ports for speedy disposal of perishable food articles. The Committee also recommends that till the testing facilities are set up at the Ports, Government may consider the possibility to allow test reports/certificates issued by the accredited testing laboratories. Since the food import is an unavoidable phenomenon, therefore even at a short notice matter is to be taken up with utmost care and seriousness. The Committee further recommends that adequate number of Drug Controlling Officers may be deputed near the port vicinity to avoid delay in cargo clearance. 13.116 The Committee notes that there has been tendency now a day to engage workmen on contract basis in Government owned PSUs. The Committee is dismay to note that workmen even after service of 10-20 years are not regularized and they are denied of other benefits also. The Committee also received complaints of under- payment to workers in violation of Minimum Wages Act. The Committee recommends that PSU should not shy away from meeting their social obligation. The Government should ensure that workers who had served for many decades must be considered for regularization. The Committee recommends that regular appointments may be made to fill the vacant posts so that the hospital may become more service oriented. The Committee also recommends that the compassionate appointment should be restored without any conditions. Since regular trained workforce is required for the Port’s functioning, the in-house as well as outdoor training facilities may be explored along with the modernization projects. 13.117 The Committee was informed that the Indian Maritime University has the modern facilities to impart training to the officers and employees of the Ports. Also there is provision to get training abroad on maritime and Ports operations. The Committee has the view that different Ports may be handling different type of equipments and machineries as per the type of cargo handled in each case. Therefore, the training requirement also may be port specific especially at certain technical fields. It is better to adopt a training strategy not for academic purposes but for the practical utility so that a trained person would be able to handle all the operational know-how of a particular area. Such a pool of trained manpower is required for each port immediately before modern equipment is installed there. A long term training plan may be formulated with the sole aim that the productivity per staff is maintained in the upward track. 13.118 The Committee also notes that shortage of pilots is a regular problem and Major Ports have to engage pilot on contract basis frequently. The salary of regular pilots is meager as compared to the remuneration paid by the shipping companies. The pilots have to perform an important job of maneuvering of ships which needs expertise and knowledge of the port area. These pilots take the ships to the designated berth after their 315 anchoring. The Committee, therefore, recommends that shortage of pilots may be met with a vision so that future requirements may be fulfilled without any difficulties. A separate cadre of pilots should be created for all the Ports. 13.119 The Committee also recommends that better HR management practices may be adopted. The Committee also recommends that training of the staff to modern equipments and machineries may be done instead outsourcing the work to private agencies for all these works. Focus is needed for building transparent and actionable-internal communication system on the part of the port management. 13.120 The Committee is of the opinion that the Major Ports require a more refined expertise in order to compete with their counterparts in the private sector. The Committee, however, desires that Government should handle the matter of corporatization of Ports carefully as many of the port employees’ unions are very much concerned about job security of the employees after corporatization. They have the fear that corporatization is an initial step for privatization. It is learnt that in the month of March, 2011, there were demonstrations by the workers of the Visakhapatnam Port and Dock against the corporatization of Ports. JNPT workers were also on strike expressing their solidarity with the workers of Visakhapatnam Port. The Committee, therefore, recommends that Government should take employees’ union into confidence and take every step to instill confidence amongst the employees about their job security so that there is no resentment amongst the employees against the corporatization of Ports. 13.121 The Committee further recommends that Government should take up the review of administrative structure of the Major Ports with a view to ensure the improvement in efficiencies, services and working atmosphere in the Major Ports which would lead the Ports to more heights in the coming days. 13.122 The Committee has the view that the surplus funds which are mostly lying idle with ports could be utilized in a more practical manner for developing infrastructure in other Ports by way of Inter- Port lending or making a common pool of funds. 13.123 The Committee is of the view that to strengthen Major Ports, a policy whereby the two Acts, namely Indian Ports Act 1908 and Major Ports Act 1963, can be amalgamated into a single Act should be conceived. The consolidated Act should oversee operations of both major and minor ports in India as both the Acts have become old and outdated. Since the inception of these two Acts, the Indian shipping sector has undergone tremendous transformation in its working structure, with significant private participation now being witnessed in the sector. 13.124 The Committee also notes that Concession Agreements have not been kept at pace with the development and the growth of containerization in India. The Committee recommends that the Concession Agreements should be reformulated keeping in mind the national interest and to avoid any monopoly or unilateral actions by the private participants. 13.125 The Committee recommends that government should examine the experience and performance of PPP abroad particularly in countries which have been the mother of the PPP contracts. It would not be in the interest of the nation to allow foreign MNCs to take over the port related activities. Moreover, the Ports have strategic Naval defence systems within its periphery, which will be open to monopoly of Multi National Companies who may control Ports and Indian defence secret will be exposed to Foreign Countries. 13.126 The Committee is of the view that Vishakhapatnam Port has to face a stiff competition from Gangavaram Port. The Visakhapatnam Port for years remained number one among the Major Ports in cargo traffic. However, during the past two-three years it has slipped to second position behind Kandla mainly due to the fact that a major portion of its cargoes consisting of coking coal, thermal coal and others have been diverted to the Gangavaram Port. The Committee, therefore, recommends that the Vishakhapatnam Port should be given all financial assistance and autonomy to ensure that the upgradation projects including deepening of draft, deepening of Ports, strengthening of berths in inner harbour, development of truck parking terminal and mechanical handling facilities and inner harbour are completed in a time-bound manner to compete with the Gangavaram Port. The Committee has observed that the loss of Gangavaram Port from the hands of Visakhapatnam Port is a classical example how dear the delay in timely decision making could be. 13.127 The Committee also recommends that the Government should come out with appropriate guidelines to ensure that no port is coming up in the vicinity of the Major Ports. Even if some port has to be developed near to the Major Ports, the Major Ports should be given the option to develop it rather than allowing other agencies encroaching into those areas which may ultimately affect the functional viability of the Major Ports. 316 13.128 The Committee is of the view that linking of water ways as in the case of National Waterways 1&2 with the Kolkata Port system, National Waterway- 3 with the Cochin Port and the proposed plan for linking of National Waterway- 5 with Paradip Port all will supplement to the inland movement of cargo in a more economical way. The Committee therefore recommends that more such options may be worked out in other parts of the country so that it may have a positive impact on the Port activities in the adjoining areas. (k) 171st Report Functioning of Sahitya Akademi, Lalit Kala Akademi, Sangeet Natak Akademi and National School of Drama 13.129 The Ministry had conveniently passed on action taken replies obtained from the Akademis and NSD to this Committee without adding its comments/response thereon. It reflects either a lack of seriousness or helplessness on the Ministry's part in improving the working of our premier cultural institutions. It appears that things have got stuck between government's helplessness/inaction and the Akademis' autonomy. The element of accountability was conspicuous by its absence both in the case of Akademis and the Ministry. 13.130 The Committee feels that the Akademis' autonomy and Government's role remain sensitive aspect till date which needs to be resolved soon to the satisfaction of all. The Committee is of the view that there should be a fine balance between institutional autonomy and their financial accountability to Parliament. The Committee hastens to add that while it does not favour the Government's control over the Akademis, the Parliament's right to know if the moneys sanctioned by it were being spent in the intended manner and the purpose, also cannot be denied. Having said this, the Committee recommends that the Government should set up a mechanism to resolve the issues relating to Akademis' autonomy and their accountability in consultation with all the stakeholders including the Akademis, Union as well as State Governments. The Committee would like to be informed about the efforts made in this regard. 13.131 The Committee notes that the Indira Gandhi National Centre for the Arts (IGNCA) which was set up in the year 1987 could not be reviewed by the Haksar Committee since it was just set up. Now, that it has completed more than two decades, the Committee feels that the functioning of IGNCA also needs to be similarly reviewed. 13.132 The Committee feels that the Government should have been more serious while dealing with the matters of our premier cultural bodies that are responsible particularly in this fast changing world when there is a greater need to reinforce our cultural values. Our cultural institutions have to be more pro-active and careful in sensitizing the public in general and youth in particular. 13.133 In this context, the Committee would like to quote the observations made by the Haksar Committee, which appropriately echoes this Committee's views as well, on the entire issue: "...... those concerned, in one way or another, with the entire field of culture have to sensitize themselves to the fact that our country is involved in complex and even turbulent processes of our economic, political, social and cultural transformation. Factors of continuity are constantly in tussle with factors of change. We recognize the validity and creative role of the market forces in the area of production, material goods and services. That recognition does not blind us to the dire necessity of relating development processes to the critical need for culture and education. In our view, our biggest challenge lies in relating education, culture and development. The integral nexus between these has yet to be conceptualized. Our Departments of Culture and the Central Akademis as well as State Akademis have devoted hardly any attention to finding an answer to the nagging question : Are culture and education necessary pre-conditions to the development of a good society and for ensuring the quality of life, howsoever defined, of millions upon millions of our people? Must our response to the “hunger of the heart” and the “famine of the brain” await, in a sequential manner, the response to the minimum needs dictated by hunger of the body?" (l) 172nd Report Development of Tourism in North-Eastern Region 13.134 The Committee noted that a number of projects have been taken up for developing tourist circuit and other such projects. However, the Committee finds that some of those projects were taken up long back and are yet to be completed. Union Ministry of Tourism should be in touch with the State Governments to help them get the projects completed on priority basis.

317 13.135 The Committee during its visit found that Neer Mahal in Tripura could be developed as an attractive tourist spot as it holds immense potential. However, the water levels in the lake is very low, particularly during winter which is the tourist season. It is learnt that Government of Tripura has taken some action for desilting of Rudra Sagar lake. The Committee is, however, of the opinion that efforts of State Government alone may not be sufficient. Therefore, the Committee recommends that the Ministry of Tourism should extend financial help to develop the lake as one of the tourist destination. This effort will also be able to create employment to a large number of people inhabiting the area. Tourist guest houses, house boats, water sports, adventure sports and rowing facilities may be added to attract tourists. Union government may also prepare a comprehensive master plan to develop Neer Mahal, in consultation with the State Government. 13.136 The Committee also recommends that tax rebates and other incentives for the development of various tourism activities like hotels, transportation etc. may be extended to the North-East area. Tax holidays, as in the case of other industries, may be provided to the hoteliers of the North-Eastern States. The existing high luxury taxes and pollution charges may be revisited with a view to making these affordable to attract tourists from all categories. 13.137 The Committee is of the view that there is need to promote helicopter operations in NER to provide the connectivity to inaccessible areas having tourism potential. The Committee however notes that no State except Sikkim has so far submitted proposals for heliports with a view to promote heli tourism there. The Committee wants the Ministry of Tourism may mobilize other states and also ask them to prepare plan for promotion of heli tourism in their respective states. The Committee notes with concern that there has been a spurt in helicopter accidents in the NE region. This may certainly discourage the tourists. The Committee also recommends that Ministry of Civil Aviation should look into the matter seriously to make helicopter operations in NER safe. 13.138 The Committee welcomes that Government of India has relaxed the Restricted and Protected Area Permits and allowed foreign tourists to visit more areas in Manipur and Nagaland. The Committee feels that there is need for putting all these things together on the website and inform all our Embassies, Consulates and India tourism offices abroad to ensure that the tourists are not unnecessarily harassed. 13.139 The Committee has received complaints that there are not sufficient number of seats available for government employees travelling under LTC schemes. The Committee recommends that Air India may take necessary steps to ensure sufficient seat availability during the vacations so that the LTC passengers could be accommodated hassle free. Introduction of special flights or chartered flights can be experimented during the vacation time to meet the demand. 13.140 Promotion of the North Eastern Region as major tourist destinations would depend on the air connectivity to these places. Air connectivity assumes great importance in these areas because of poor rail/road connectivity. There is need for improvement in air connectivity to the North-Eastern Region and regular direct flights to Delhi. 13.141 The Committee suggests that steps should be taken to attract foreign tourists through special international packages in consultation with neighbouring countries like Bangladesh, Bhutan, Nepal, Myanmar and Thailand as the NER has many Monasteries to attract tourists. 13.142 The Committee finds that delay in the environmental clearance has been one of the major reasons for the delay in starting as well as completion of airport projects. For some of the projects, environmental clearance is still awaited. The Committee recommends that the Ministry of Civil Aviation should take up the matter with the Ministry of Environment and Forest to expedite the necessary clearances. 13.143 The Committee has observed that the North eastern region has early sunrise and sunset. About two hours early sun rise has an impact on the biological clock of the people in the region and if this early hours be utilized for early operations of aircrafts to other regions of the country that would be beneficial for all. The Committee notes that Airports Authority of India has already undertaken some projects at Guwahati airport in this regard. The Committee recommends that Airports Authority of India may take steps to ensure that Agartala airport may be provided with night halt facilities so that early morning flights could start operation within and out of the Region. The Committee, therefore, also recommends that Guwahati and Agartala airports should be developed as hub by providing hanger for parking of Aircrafts which is a pre-eminent requirement for promoting intra-region connectivity. The airline operators then may be instructed to park their aircrafts at Guwahati and Agartala so that they can start early morning operations utilizing the early sunlight conditions.

318 13.144 The Committee takes note of the recommendations of the Shukla Committee, which was constituted in 1998, for the promotion of the tourism in NER. The Committee had recommended the establishment of the Northeast Tourist Development Corporation (NDTC). It also further recommended that the proposed NTDC in consultation with NEC and the tourist department of the respective States should work out plans for the developments of tourist sites and related infrastructure in the region. The Committee recommends that the above proposal of the Shukla Committee be considered and implemented by the Government. 13.145 The Committee feels that some kind of special procedures may be devised for the region. Funds may be put in non-lapsable category as is being done for other such areas of the country. Cost-norms of the project also need to be made state specific. For land acquisition, environmental and other clearances etc. single- window facility should be put in place at the earliest. In view of the quality works carried out by the BRO, their involvement need to be strengthened in a big way both technically and financially in the areas of the road development. Adequate security, financial and otherwise, needs to be given to the people working on these projects. 13.146 The Committee is also of the view that prescribing the fixed period of 5 years for repair of NH in hilly- terrain like that of North Eastern region is too long as the roads there get damaged frequently due to frequent rainfall, poor drainage system, land slide, etc. The Committee, therefore, feels that the repair guidelines also need to be modified for this region to provide that whenever there is damage to the NH, the repair work should be taken up immediately. As regards the damage to the National Highways passing through the towns and villages due to poor drainage, the Committee, recommends that the agencies engaged in planning and development of NH should consult the local bodies to know the patches of the roads where the National Highways get generally damaged due to poor drainage, etc. 13.147 The Committee was informed that the arterial road from Siliguri to Gangtok (NH-31A) is the lifeline of Sikkim that connects it to the rest of the country through West Bengal. The Committee, therefore, recommends that the proposal for double-laning of the National Highway is being done by the Border Roads Organization (BRO) and the widening activity from Gangtok to Nathula and some intermediate stretch between Sevoke and Gangtok may be completed at the earliest. It was also brought to the notice of the Committee that the road condition from Tripura to Guwahati is extremely bad. The Committee also recommends that the road from Guwahati to Tripura should be maintained as an all weather road. 13.148 The Committee notes the lackadaisical attitude of the Government to the project of 4 laning of NH-44 that exposes its lack of seriousness in developing an important national highway in the state of Tripura which is of critical importance for movement of traffic and goods including essential commodities. The project announced by the Hon’ble Prime Minister in the year 2005 and approved by the Cabinet Committee on Economic Affairs in its meeting held on the 1st October, 2007 is yet to take-off for one or the other reasons. Even the above information was elucidated from the Ministry of Road Transport and Highways when the Committee took up the issue with the Ministry. The Committee hopes that such things will not recur in future especially that of road projects related to North-Eastern Region where road transport is the only life line for the people as well as for the trade. The Committee came to know that the Government of Bangladesh has provided India the access to Chittagong and other ports to India. The Committee has the view that if this opportunity is exploited properly, it will not only boost up the economic activities in the entire NE Region but also increase the tourism prospects in NER. However, in order to avail this opportunity the NH 44 should be maintained in proper conditions so that the highway will become the lifeline of NER. The Committee recommends that proper funds may be provided for the complete development of NH-44. 13.149 The Committee has received complaints about adulteration of fuel in most part of the region which has increased not only the maintenance cost and durability of the vehicles adversely, but pollutes the air also. This thing does not augur well for the rich biodiversity of the region. Therefore, the Committee recommends the Ministry of Tourism to take up the matter with the oil companies, State Governments and other concerned authorities to ensure that adulteration of petroleum products are stopped. 13.150 The Committee is also of the view that due to increased requirement of transport and road net-work, the cities and main town need to have redesigned, circular-roads around them to decongest the traffic, which has huge financial implication. Government of India may provide financial assistance for improvement of traffic management in the NE region. 13.151 The Committee is of the view that affordable mode of transport to all sections of the people is rail service, it is, therefore, desirable to have all the places of importance connected with rail service. The remote 319 areas are isolated from the main land because of improper connectivity especially during the difficult climate and rail service could solve the problem to a great extent. Also, the rail journey can be made another means of tourist attraction as in the case of Ootty-Mettupalayam rail and Kalka-Shimla line where the passengers can enjoy the beauty of the places during their journey. The Committee also recommends that broad gauge rail links may be introduced in order to tackle the difficulties caused by geographically isolated nature of Tripura to have inter and intra State rail links. The Committee further recommends that maintenance of coaches and provisions for cleanliness of coaches and good quality food to the passengers in order to facilitates the tourists, particularly in Tripura should be given priority. 13.152 The Committee notes that North East is endowed with some of the most beautiful rivers which offers exciting water sports like river rafting, boating, paddling as well as river cruises. North East can be marketed for its swift, surfing waters of Brahmaputra for river cruise. Ministry of Shipping and Inland Waterways Authority should make all the rivers navigable in the North-East and provide the infrastructure for development of cruise tourism in large scale. 13.153 The Committee noted that Majuli Island, a tourist destination, is under threat due to extensive soil erosion and with this pace, Majuli would cease to exist. Further, a proposal has been sent to UNESCO for declaring it as World Natural Heritage Site. The Committee recommends that steps should be taken to protect the Island and get it declared as the World Natural Heritage Site. 13.154 The Committee had seen some of the important places of tourist attraction in some of the States. The facilities provided at various such places /sites leave much to be desired, including their accessibility. The Committee, however, is not satisfied with the facilities and pace of work at many of these sites. The Committee also noticed that out of the 79 monuments, only 10 places have been provided with tourist amenities, that also at the bare minimum in many places. The role of the ASI needs to be increased in this area which does not have a visible presence there.

VII. Secretariat

13.155 The Committee (T&T) headed by an Assistant Director constitutes the Secretariat of the Committee. A Joint Secretary, a Director and a Joint Director remained in-charge of the Branch. 13.156 To assist the Committee in its work, materials received from the Ministries various non-governmental organizations and individuals were studied from which points were culled out. The questionnaires for written replies/evidence were also prepared for the use of the Committee. 13.157 The work relating to drafting, consideration and approval of draft reports by the Committee along with their presentation, laying, printing and distribution was undertaken. The Secretariat also dealt with the work relating to the scrutiny of action taken notes received from the Ministries concerned on the recommendations contained in the Reports of the Committee and prepared the Draft Action taken Reports of the Committee on it. 13.158 The Secretariat also studied material like Parliamentary Debates, Answers to Parliamentary Questions, Budget Estimates, Five Year Plan Documents, Books, Journals, CAG reports, newspapers etc. relevant to the subjects under examination of the Committee.

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ANNEXURE –XVI (See Para 13.5) Details of Meetings of the Committee during the year 2011 Sl. Date of Duration Subject No. Meeting Hrs. Mts. 1. 18.01.2011 02 .36 Heard the views of the Secretary, Ministry of Culture on the functioning of National Akademies viz., Sahitya Akademi, Lalit Kala Akademi, Sangeet Natak Akademi, National School of Drama and Indira Gandhi National Centre for Arts (IGNCA) 2. 25.01.2011 02 .52 Heard the views of the Secretary, Ministry of Civil Aviation on the Action Taken Replies submitted by the Ministry on the recommendations/observations contained in the 151st Report on the Merger of Indian Airlines and Air India: Its impact on Civil Aviation Sector. 3. 13.04.2011 01. 30 Considered and adopted the draft 168th and 169th reports on the (i) Directorate General of Civil Aviation (DGCA)- Issues and Challenges; and (ii) Helicopter Operations in India, respectively. 4. 25.04.2011 01. 00 Heard the views of the officials of the Ministry of Road Transport and Highways on the current scenario regarding development of National Highways 5. 27.05.2011 02. 30 Considered and adopted the draft 170th report on the Modernisation of Major Ports. Thereafter, the Committee heard the views of Secretary, Ministry of Road Transport and Highways on the current scenario regarding development of National Highways. 6. 16.06.2011 02 .00 Heard the views of officials of the Ministry of Tourism, Ministry of Civil Aviation, Ministry of Road Transport and Highways, Ministry of Development of North-Eastern Region, North Eastern Council and the Governments of Arunachal Pradesh, Manipur, Nagaland, and Sikkim on the Development of Tourism in North - Eastern States. 7. 13.08.2011 0. 30 Considered and adopted draft 171st report of the Committee on the Functioning of Sahitya Akademi, Lalit Kala Akademi, Sangeet Natak Akademi and National School of Drama and 172nd Report on Development of Tourism in North-eastern Region 8. 19.10.2011 01. 10 Introductory meeting of the Committee wherein an overview of the functioning of the Committee and work done during the last year was given by Chairman. The Committee also discussed various issues on Road, tourism, culture, Civil Aviation and Shipping sector. The Committee also discussed the 151st Report on the “Merger of Indian Airlines and Air India: Its impact on the civil aviation sector”, wherein important recommendations/observations inter alia on the acquisition of aircrafts, various issues relating to the Air India and Indian airlines, bilaterals, human resource management and the

321 Sl. Date of Duration Subject No. Meeting Hrs. Mts. impact of merger of national carriers on the aviation sector in the country were made. The Comptroller and Auditor General of India’s 18th Report of 2011-12 on the performance Audit of Civil Aviation in India (Ministry of Civil Aviation also made many observations particularly on merger of Air India and Indian Airlines and acquisition of aircrafts which are, more or less, similar to those made by the Parliamentary Standing Committee. Comparative analysis was made and chairman directed to circulate the same. 9. 15.13.2011 02. 30 Heard the Secretary, Ministry of Civil Aviation on the Functioning of Commission on Railway Safety under the administrative control of the Ministry of Civil Aviation.

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