9. SOCIAL SECTOR DEVELOPMENTS
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1 9.1 Introduction 9. SOCIAL SECTOR DEVELOPMENTS Educational and labour reforms continue to be the mainstay of the central government s policies. While the latter is of more concern to the government, due to drought in one part of the country and floods in the other, the former is gradually picking up pace. 9.2 Education Rohtak to have northern India s first IIM Rohtak in Haryana, is all set to be home to northern India s first Indian Institute of Management (IIM). Proposed to be located in Garnawati, the new IIM will be functional from the academic year The campus will be located over 200 acres and will entail an investment of about Rs 250 crore to be funded by the central government. The IIM at Rohtak would be attached with IIM-Lucknow as per the government s model in which an established IIM will mentor the new one. Cabinet approves 9 new NITs The Union Cabinet will set up new National Institutes of Technology (NIT) to cater to the needs of States/UTs which do not have them currently like, Manipur, Mizoram, Meghalaya, Nagaland, Goa, Puducherry, Sikkim, Delhi and Uttarakhand. The new institutes have been categorised under two schemes: Scheme A that will cover Manipur, Meghalaya, Mizoram, Nagaland, Goa, Puducherry and Sikkim; and Scheme B will be adopted by Delhi and Uttarakhand. The process of setting up the NITs will begin in with the formation of their respective societies, constitution of Board of Governors and appointment of Directors. Construction of the campuses will be initiated subject to land being provided free of cost by the respective states/union territories (UTs) and be completed over five years. Admissions will begin from the academic year and classes will start either in campuses taken on lease or temporarily in mentor NITs. The total cost of the project is Rs 2,600 crore. 61
2 Other Initiatives Other upcoming institutes include a regional centre of foreign languages of Hyderabad University, a women s institute of professional studies, hotel management institution at Tilyar among others. CABE approves educational reforms The Central Advisory Board of Education (CABE) has approved educational reforms which include development of a Core Curriculum for science and mathematics for all school boards, grading system in CBSE schools from current year, optional Class X exams from next academic session, an independent policy making body for higher education and proposed legislations to check malpractices in institutes of higher education. CABE also approved the plans to set up national and state level tribunals to adjudicate over disputes between students and institutes, policy to attract fresh talent to institutes, semester systems in universities and attempts to build consensus on the creation of a Central Madrasa Board. CBSE allows X th std students 5 attempts to improve grade The Central Board of Secondary Education (CBSE) has allowed students of IX and X std. to improve their grades in 5 attempts from the academic year As per this guideline, students receiving grades E1 or E2 in any subject will be allowed to reappear for the exam. Though a student s performance will be assessed using conventional method of numerical marking, the grades will be awarded to indicate subject-wise performance. 9.3 Health Genzyme India, ICMR in talks to conduct infant health study Epidemiology is the study of factors affecting the health and morbidity of a defined population group, and serves as the basis for the possible interventions that can be made in the area of preventive medicine. Genzyme India, the Indian arm of the world s third-largest biotech company, Genzyme Corporation, is in initial talks with the Indian Council of Medical Research (ICMR) to conduct epidemiological studies through a New Born Screening (NBS) project in India. 62
3 Under the project, blood samples of infants are proposed to be tested for about 100 odd diseases to identify predisposition of the Indian population to a range of diseases. In the proposed project, Genzyme India intends to partner with the Indian government and offer assistance in designing the study and provide free training in the selected hospitals. ICMR has access to the infrastructure needed for such a study in the form of a network of state-run hospitals. NBS tests newborns for treatable genetic, endocrinologic, metabolic and hematologic diseases within 48 hours of birth before the symptoms of the disorder manifest. 9.4 Labour NREG works to be carried out on dalit land first The Ministry of Rural Development in its amended guidelines has asserted that land belonging to scheduled castes (SC) and/or scheduled tribes (ST) would be earmarked for works under the National Rural Employment Guarantee Scheme on a priority basis. Only after saturation on this land is reached, would land belonging to small and marginal farmers be taken up. Earlier in July 2009, the ministry had decided to expand the ambit of NREGS by allowing creation of assets that would include provision of irrigation facility, horticulture plantation and land-development facilities on land owned by small and marginal farmers. Biometric devices to plug loopholes in NREGS The central government would spend Rs 250 crore to effectively plug leakages in payments under its flagship National Rural Employment Guarantee Scheme (NREGS) by installing biometric identification devices in around 250,000 panchayats covered under the scheme. The government is exploring a banking correspondent model to deliver cash to workers using biometric devices as means to verify identity of beneficiaries. The banking correspondent model using biometric identification will minimise duplication of job cards and misplaced allocations of benefits. This system will have designated bank correspondents for specified panchayats who will carry biometric devices and deliver cash to workers covered under the scheme. A single biometric device costs around Rs 10,000. The model is already in place in a few districts of Rajasthan and Bihar. Orissa will be the first state to have all its 30 districts covered under this. 63
4 Central government to offer more work under NREGS The central government is planning to offer additional days of employment in drought-hit districts to those already registered under the NREGS and have exhausted their 100- day quota. Reportedly, funds for this would be sourced from the National Calamity Relief Fund (NCRF). NREGA payments to be digitised The central government is negotiating with Suvidha Starnet, a Delhi-based IT company, for facilitating payments towards National Rural Employment Guarantee Act (NREGA) in Uttar Pradesh, Rajasthan and Andhra Pradesh. The payments will be made to the affected people via Beam payment service, which is a mobile payment system. NREGA payments to be capped at Rs 100 After considerable debate, the central government has decided to cap daily wage given to workers under the NREGA at Rs 100. This implies that the Centre will reimburse only up to a maximum of Rs 100 as daily wage per person under NREGA to states. A notification to this effect will be issued shortly. At present, 90% of NREGA cost is reimbursed by the central government through the Ministry of Rural Development. It has also allowed states to offer more than Rs 100 for work done, but from its own budget. The capping of wage rate would help the government manage the fiscal burden under the mega job guarantee scheme. 9.5 Social Security Additional 5% DA; interest subsidy for farmers, home buyers approved The central government has declared an additional 5% dearness allowance (DA) for its over eight million employees and approved two interest subsidy schemes for farmers and home buyers. The additional DA, to be given with effect from 1 July 2009, will help the employees and retired people weather the impact of rising prices. Earlier in March 2009, the central government had raised DA for its employees and pensioners to 22% of base from the previous 16%. Accordingly, the rate at which DA is currently calculated stands at 27% of base. 64
5 However, the central government has also decided to slash the interest subsidy given to farmers on crop loans by one percentage point to 2% for this fiscal, a move that is expected to bring down burden on the central exchequer by Rs 311 crore. The government will pay 2% interest subsidy to banks, against 3% in the last fiscal, for granting short-term crop loan to farmers at a concessional rate of 7%. The subvention is available for crop loans up to Rs 3 lakh for one year and will be given to public sector banks, regional rural banks (RRBs) and cooperative credit institutions (CCIs) on their lending as well as to National Bank for Agriculture & Rural Development (NABARD) for refinancing RRBs and CCIs. In another development, home loan takers could save up to Rs 10,000 on their monthly repayments for one year. Aimed at promoting low-cost housing, the subsidy will be available for loans up to Rs 10 lakh, provided the cost of the dwelling unit does not exceed Rs 20 lakh. It is expected that the cut in interest rates should reduce the equated monthly installments of borrowers and create additional demand for housing, particularly in the low-cost category. PFRDA approves proposal to manage corporate pension The board of the Pension Regulatory Fund Development Authority (PFRDA) has approved the proposal to manage the pension corpus of companies. PFRDA has given its inprinciple approval to the proposal and it will announce the guidelines for managing the funds by October However, the proposal has been approved subject to certain conditions, like following the same investment and regulatory norms as are applicable to the individual subscribers. 9.6 Summing Up The emphasis clearly is on making the NREGS more accountable and efficient with weaknesses showing up in its implementation in many states. The government is going hi-tech, and has announced its plans to digitise payments and using devices such as biometrics to ensure payment to the rightful worker. While the central government has announced an increase in DA by 5% to accommodate the rising prices in the current situation, this will add to the fiscal burden. 65
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