Important Bills Features, Merits and Demerits

NATIONAL FOOD SECURITY BILL 2013

Act Highlights

PDS
o Rice > Rs 3 per kg, wheat > Rs 2 per kg, coarse cereals > Rs 1 per kg
(subject to revise after 3 years)
o 75 % rural population, 50 % urban population will get 5 kg/month.
o Antyodaya Anna Yojana > 35 kg (present scheme continue).
o 80 million covered under the Targeted Public Distribution System.
Children
o 6 month to 14 years > get take-home rations or hot cooked food.
o By local Anganwadi, Free of charge
o Free mid-day meal in govt and govt-aided schools.
o Below 6 months > exclusive breastfeeding shall be promoted
Pregnant and Lactating Women
o Maternity benefits of at least Rs. 6000
o Free meal at local Anganwadi
Identification of beneficiaries
o State govt responsibility
o Based on socio-economic and caste census (SECC) Data.
o To be complete in 365 days and made public.
Implementation
o Creation of state food commission to monitor implementation.
o Prepare annual reports.
o Hear appeal against order of DGRO.
o Two tier Grievence Redressal Structure > 1st -DGRO (District
o
o
o
o
o
o

Grievance Redressal Officer), 2nd food commission.

All PDS related reports to be made public.
Conduct social audit of PDS
Use of IT for transparent reporting.
Setting up of vigilance committee to supervise
Food security allowance for non-supply of food.
Food commission can impose penalty and fine upto Rs.5000 on

concerned officer or authority in case of non-compliance.

PDS reforms
o Doorstep delivery and end-to-end computerization.
o Leveraging ADHAR for identification.
o Cash transfer, food coupons to ensure entitlement.
Central govt will provide money to states and union territories if it runs low on
grain as well as providing them with assistance towards the cost of intrastate transportation and handling of grains.

Oldest adult woman in each house would be considered the head of that

household for the issuing of ration cards.

The total estimated annual food grains requirement is 612.3 lakh tons.

Merits

If proper implementation > Lower spending on food > more on health,

education and nutritious food.

Savings of around Rs 4,400 this year is estimated.
Spend more on protein-rich food, thereby improving their nutritional intake.

Demerits

Inefficient distribution channel leads to waste

Implementing the bill in a fair, equitable and transparent manner is going to be

a big challenge for the government.

Ends up being sold illegally in markets rather than in fair price shops
Discourage the agriculture production in the country.
Additional subsidy burden of Rs 1.20 lakh crore per annum.
Cost to the exchequer > fiscal and current account deficit.
The task of construction of additional storage to the states, which may not be

practically feasible given constrained center-state relations among diverse

political parties.
Lack of enough storage capacity >rotting of food.
The rush to pass the bill implies the intent is nakedly political.

THE PENSION FUND REGULATORY AND DEVELOPMENT

AUTHORITY ACT, 2013
Act Highlights
To provide for the establishment of an Authority to promote old age income
security by establishing, developing and regulating pension funds, (in short
Statutory powers to the Pension Authority to act as a regulator)
To protect the interests of subscribers to schemes of pension funds.
Formally changes the name of the New Pension System to the National
Pension System (NPS)
NPS: contribution scheme for all central government employees, other than
the armed forces, who joined after January 2004.
Implemented through a combination of retailers, pension fund managers,
and a record-keeper.
Subscribers with individual pension account (portable across job changes)
Free to choose fund managers and schemes to manage their pension wealth

 Extended to all general citizens including un-organised sector. (But not

mandatory like USA which have a mandatory system to ensure that all
persons have old-age income security)
Allow subscribers to invest in stock markets with a cap.
Allows 26 per cent foreign direct investment (FDI) in the pension sector
Merits

Old age income security for government employees and general public.
New pension products in the market
More choice for customers and can start investing earlier and as per

individual need.
Invest in the portfolio > high returns and fixed returns at the time of

retirement.
Improve quality of service and greater fixed and variable returns.
Mobilise substantial long-term funds, which can be used to build

infrastructure.
Subscribers won't be exposed to risk of government default.

Demerits

No explicit or implicit guarantee on the pension wealth, except in cases

where the subscriber purchases market-based guarantees. (This rule differs

from bank deposits, where deposits up to Rs. 1 lakh are guaranteed.)
Investment risk will be entirely borne by subscribers.

THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN

LAND
ACQUISITION,
REHABILITATION
AND
RESETTLEMENT BILL, 2012
Act Highlights
The Bill will replace the existing Land Acquisition Act, 1894.
Land can be acquired for
o Public projects like Strategic use by the armed forces, paramilitary,
state police; for national security; for infrastructure projects
o Private projects like hospitals, private education institutions and
private hotels;
o Projects related to industrial corridors, mining, national investment and
manufacturing zone, sports, healthcare, tourism and space programs;
o Housing projects for income groups specified by government, projects
planned for development of village sites, residential areas for lower
income groups in urban areas; projects involving agro-processing,

warehousing, cold storage, marketing infrastructure, dairy, fisheries

and meat processing cooperatives
For a private entity or a PPP project > social impact assessment (SIA) and an
environmental impact assessment (EIA), to identify the families to be affected.
Consent
o Private entity > 80 % of the affected families.
o PPP > 70% of the affected families
Compensation package
o Rural Areas > 4 times of market value
o Urban Areas > 2 times of market value
o When acquired land is sold to 3rd party > 40% of benefit. (Exempt from

tax and stamp duty)

A Land Acquisition and Rehabilitation and Resettlement Authority to be

established
Retrospective cause > Applicable on cases where no land acquisition award

made.
Lease > Industry can take land on lease but with state govts permission.

Merits
Just and fair compensation to families whose land has been acquired for

industrial purposes.
Making affected persons partners in development, leading to an improvement

in their post-acquisition social and economic status.

Instead of acquisition, land could be leased to developers so that its ownership
remain with farmers and provide them regular annual income.

Demerits
For project owners
o Make the land acquisition process slower
o Compensation would raise costs of projects fivefold
o Retrospective application clause not favorable
For Land owners
o No guarantee of jobs in R&R package;
o Compensation calculated according to circle rates much less than
market prices;
o No protection to farmland;
o State government to decide if unused acquired-land should be returned
to the farmer or added to its land bank. This applies even if owners
return the compensation

THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL,

2013
Act Highlights

Standardization of Definitions > Definitions of "Apartment", "Common

Area", "Carpet Area", "Advertisement", "Real Estate Project", "Prospectus"
etc.

Carpet Area for sale, instead of ambiguities of "Built Up Area", "Super Built
Up Area" etc.

Real Estate Regulatory Authority > This Authority is similar to TRAI of

Telecom and IRDA for Insurance. It provides specialized regulation and
enforcement. It can impose penalties on Developers for violations including
imprisonment upto 3 years.

Registration of Real Estate Agents > The Agents must maintain and preserve
books of accounts, records and documents, facilitate the possession of
documents to allottees as entitled at the time of booking etc.

Duties and Functions of the Promoter > towards disclosure of all relevant
information, adherence to approved plans, veracity of advertisement for sale or
prospectus, rectify structural defects, and refund money in case of default.

Rights and Duties of Allottees > Right to obtain all information related to
property booked, know stage-wise completion schedule, claim possession as
per promoter declaration, claim refund with interest in case of Promoter
default, after possession claim necessary documents and plans. Duty of the
Allottees is to make necessary payments and any other responsibility per the
Agreement.

Register all projects > The registration is to happen AFTER receiving all
approvals from Development/Municipal authorities.

Public Disclosure > details related to the project: Details of the Promoter,
Project, Layout Plan, Plan of Development Works, Land Status, Carpet Area ,
number of apartments booked, status of the statutory approvals, names and
addresses of architect, contractor, structural engineer, real estate agents etc.

Separate Bank Account for each Project and deposit 70% of the Amount
received by him towards the Project in this Account. The Deposit percentage
may change as notified by the Appropriate Government (state govt?)

Fast Track Dispute resolution > Real Estate Appellate Tribunal.

Merits

Uniform regulatory environment in the real estate sector

Eradication of problems like black money, corruption, red tapism, land mafias

and corruption.
Ensure sale of immovable properties in an efficient and transparent manner
Protect the interest of consumers in the real estate sector.
Easy Grievance Redressal avenues.
Easily accessible information for Buyers to validate Property Documents &
Clearance Documents.

Demerits

Substantial delays in approvals, especially environmental clearances.

Regulations on foreign investment make it difficult for small developers to

access low-cost capital.

Approvals of building plans by the planning authority or a municipal
corporation result in abnormal delays.

RAJIV GANDHI NATIONAL AVIATION UNIVERSITY BILL, 2013

Reason

Marked absence of credible institutions imparting specialised technical and

managerial training in air transportation, safety, security and regulatory areas

Act Highlights

To train pilots, cabin crew and aircraft engineers.

Promotion of aviation studies, training and research with focus on aviation

medicine, aviation safety and security, aviation law, aviation science and
engineering, aviation history, aviation regulation and policy and aviation
management.
Public-Private Partnership (PPP) for construction of Airports.
Autonomous body under administrative control of the Civil Aviation Ministry.
Funding of 202 crore Rupees during the 12th Plan period (80 crore sanctioned)
Become a knowledge partner to safety and security regulators.
At the Indira Gandhi Rashtriya Udaan Academy at Fursatganj in Rae Bareli.
(Constituency of Sonia Gandhi)

Merits

Qualified and trained manpower for aviation sector.

Opening of more domestic airports in the country.

Expand the airports of the Air Force for this purpose in some districts

Demerits

Rae Bareli is an aviation desert. Best place should be Banglore.

Another scheme named after Rajiv Gandhi !!

by Bharat Chaudhary

References:

http://www.prsindia.org/
http://www.business-standard.com/article/pf/10-things-youwanted-to-know-about-the-new-pension-bill113090400910_1.html
http://www.jagranjosh.com/current-affairs/lok-sabha-passedthe-rajiv-gandhi-national-aviation-university-bill-20131378534663-1
http://www.moneycontrol.com/news/current-affairs/bill-tosetfirst-national-aviation-university-passed_946140.html
http://www.indianexpress.com/news/lok-sabha-passes-bill-toset-up-first-national-aviation-university/1165622/0
http://www.firstpost.com/economy/all-you-need-to-knowabout-national-food-security-bill-1063107.html
http://www.tehelka.com/exclusive-summary-of-the-nationalfood-security-bill-2013/
http://blogs.wsj.com/indiarealtime/2013/08/07/fact-sheetindias-food-security-bill/
http://www.business-standard.com/article/economypolicy/things-you-must-know-about-the-land-acquisition-bill113082900824_1.html
http://zeenews.india.com/news/nation/five-things-you-need-toknow-about-land-acquisition-bill_872529.html
http://apartmentadda.com/blog/2013/09/03/10-features-ofthe-real-estate-bill-2013/
http://www.mondaq.com/india/x/257592/real+estate/The+Real
+Estate+Regulation+And+Development+Bill+2013