Professional Documents
Culture Documents
Structure
1.1 INTRODUCTION
1
sphere with which it is concerned. Administration is commonly divided
into two types, Public and Private Administration. As an aspect of
government activity it has existed since the emergence of political
system(s). While public administration relates to the activities carried
out by government, private administration refers to the management of
private business enterprises.
E.N. Gladden
2
manage affairs…. is determined action taken in pursuit of conscious
purpose”.
Brooks Adams
Felix A. Nigro
L.D. White
Luther Gullick
F.M. Marx
“In its broadest sense, the administration can be defined as the activities
of group cooperating to accomplish common goals.”
3
group effort, public or private, civil or military, large scale or small
scale. It is process at work in a department store, a bank, a university, a
high school, a railroad, a hospital, a hotel or a local government.
4
1.4 DEFINING PUBLIC ADMINISTRATION
Woodrow Wilson
L.D. White
5
Percy Mc Queen
Luther Gulick
J.M Pfiffner
M. Ruthanaswami
Dwight Waldo
M.E. Dimock
6
“Public Administration is concerned with ‘what’ and ‘how’ of the
government. The ‘what’ is the subject matter, the technical knowledge
of a field, which enables the administrator to perform his tasks. The
‘how’ is the technique of management, the principles according to
which co-operative programmes are carried through to success. Each is
indispensable, together they form the synthesis called administration”.
Nicholas Henry
In this context we can reflect the definition offered by F.A. Nigro and
L.G. Nigro. According to them Public Administration:
7
• is the business side of government and as such concerned with
policy execution, but it is also concerned with policy-making;
• covers all three branches of government, although it tends to be
concentrated in the executive branch;
• provides regulatory and service functions to the people in order
to attain good life;
• differs significantly from private administration, especially in its
emphasis on the public; and
• is interdisciplinary in nature as it draws upon other social
sciences like political science, economics and sociology.
There are two views regarding the Nature of Public Administration, that
is, Integral and Managerial.
The two views differs from each other in many ways. According to
Prof. M.P. Sharma the difference between the two views is
fundamental. The integral view includes the activities of all the persons
engaged in administration whereas the managerial view restricts itself
only to the activities of the few persons at the top. The integral view
depicts all types of activities from manual to managerial, from non-
technical to technical whereas the managerial view takes into account
only the managerial activities in an organisation. Furthermore,
administration, according to the integral view would differ from one
sphere to another depending upon the subject matter, but whereas that
will not be the case according to the managerial point of view because
the managerial view is identified with the managerial techniques
common to all the fields of administration.
8
The difference between the two views relates to the difference between
management and operation or we may say between getting things done
and doing things. The correct meaning of the term administration
would however, depend upon the context in which it is used. Dimock,
Dimock and Koening sum up in the following words:
9
Organisation means the establishment of the formal structure of
authority through which the work is sub-divided, arranged, defined and
coordinated.
Staffing means the recruitment and training of the personnel and their
conditions of work.
We all know that public administration deals not only with the
processes but also with the substantive matters of administration, such
as Defence, Law and Order, Education, Public Health, Agriculture,
Public Works, Social Security, Justice, Welfare, etc. These services
require not only POSDCoRB techniques but also have important
specialised techniques of their own which are not covered by
POSDCoRB techniques. For example, if you take Police
Administration it has its own techniques in crime detection,
maintenance of Law and Order, etc., which are much and more vital to
10
efficient police work, than the formal principles of organisation,
personnel management, coordination or finance and it is the same with
other services too. Therefore, the study of public administration should
deal with both the processes (that is POSDCoRB techniques and the
substantive concerns). We conclude the scope of public administration
with the statement of Lewis Meriam: “Public administration is an
instrument with two blades like a pair of scissors. One blade may be
knowledge of the field covered by POSDCoRB, the other blade is
knowledge of the subject matter in which these techniques are applied.
Both blades must be good to make an effective tool”.
John Gaus, Ludivig Von Mises, Paul H. Appleby, Sir Josia Stamp,
Herbert A. Simon, Peter Drucker, etc., in their writings, have made
distinction between public and private administration.
11
• Public administration is political where as private administration
is non-political; and
Felix A. Nigro has pointed out that government is also different from
private organisation, as no private company can equal to it in size and
diversity of activities.
12
Appleby reflects further on the distinction between public and private
administration in the context of public accountability “Government
administration differs from all other administrative work to a degree not
even faintly realised outside, by virtue of its public nature, the way in
which it is subject to public scrutiny and outcry. This interest often runs
to details of administrative action that in private business would never
be of concern other then inside the organisation.
Service and Cost: Most governments spend more money than their
income or revenues. That is the reason for finding generally a deficit
budget that is, expenditure exceeding income. Conversely, private
administration income often exceeds expenditure without which they
cannot survive.
13
regulations. Government officials are obliged to act within their legal
powers and not outside the law.
14
1.7.2 Similarities between Public and Private Administration
Scholars like Henry Fayol, Mary P. Follet and L. Urwick do not make
a distinction between public and private administration. The classical
writers held the view that public and private administrations are the
undifferentiated members of the genus administration. Henri Foyal, for
example, says that there is only one administrative science, which can
be applied equally well to public and private sectors. In his address in
the Second International Congress of Administrative Science, Fayol
remarked, “The meaning which I have given to the word administration
and which has been generally adopted, broadens considerably the field
of administrative sciences. It embraces not only the public service but
also enterprises of every size and description, of every form and every
purpose. All undertakings require planning, organisation, command,
co-ordination and control and in order to function properly, all must
observe the same general principles. We are no longer confronted with
several administrative sciences but with one which can be applied
equally well to public and to private affairs”.
15
7. Public and private administration serves the people, whether
being called clients or customers. Both have to maintain close
contact with people to inform about their services and also to get
feedback about services and product. In both the cases, public
relations help them to inform and improve their services to the
people.
The preceding discussion shows that the distinction between public and
private administration is not absolute. In fact, they are becoming more
and more alike in many respects. However, it does not mean that there
are no significant differences between these two types of administration.
Waldo observes that Public administration is distinct because it reflects
the peculiar characteristics of government activity and the public setting
in which it functions.
With this brief characterisation, it could be stated that both public and
private administration are placed in different environments. But this
difference is more apparent than real. According to Waldo, The
generalisation which distinguish public administration from private
administration by special care for equality of treatment, legal
authorisation of, and responsibility of action, public justification of
decisions, financial probity and meticulousness, etc. are of very limited
applicability,” In fact public and private administrations are the “two
species of the same genus, but they have special values and techniques
of their own which give to each its distinctive character.
16
The study of administration assumed significance, according to
Woodrow Wilson, as a consequence to the increasing complexities of
society, growing functions of state and growth of governments on
democratic lines. This exhaustive list of functions made to think as to
‘how’ and in what ‘directions’ these functions should be effectively
performed. To this Wilson suggested that there was a need to reform
the government in the administrative field. As per Wilson, the object of
administrative study is to discover what government can properly and
successfully does and how it can do these things with utmost efficiency
and the least possible cost either of money or of energy.
17
government policies and operations on society. What kind of
society do the policies envisage?; To what extent administrative
action is non-discriminatory?; How is public administration
functioning and what are the immediate and long term effects of
governmental action on the social structure, the economy and
polity?; etc. are questions requiring careful analysis. From the
social science perspective, public administration, as a discipline,
has to draw on a variety of sister disciplines such as History,
Sociology, Economics, Geography, Philosophy, Psychology,
etc., with the objective to explain and not just to prescribe.
18
health, education, recreation, sanitation, social security or others. It is,
therefore, a creative factor, with its motto being ‘human welfare’.
These functions are over and above its regulatory functions. The view
points of eminent scholars, as referred to below, amply reflect the
significance of public administration.
19
changes of government in democratic countries, but is also
reflected when there are revolutionary changes in the form and
character of government.
• Preservation of polity;
• Maintenance of stability and order;
• Institutionalisation of Socio-Economic changes;
• Management of large scale commercial services;
• Ensuring growth and economic development;
• Protection of the weaker sections of society;
• Formation of public opinion; and
• Influencing Public policies.
The points mentioned below summarise the reasons for the growing
importance of public administration:
• Industrial Revolution
The industrial revolution gave rise to socio-economic problems
making the government to assume new roles and responsibilities
such as protection and promotion of the rights of workers in
industrial establishments, etc. Consequently, the state has
20
enacted a number of Industrial and Labour laws and it is
imperative for public administration to implement such laws in
order to meet the requirements of labour welfare.
• Economic Planning
Centralised economic planning has been pursued in many
developing countries as a method for socio-economic
development. It requires a large number of experts and
elaborate administrative machinery for plan formulation,
implementation, monitoring, and evaluation.
Apart from the reasons cited the rapid growth of population, modern
warfare, increase in natural and manmade disasters, decline in social
harmony, increase in violence due to conflicts, communal riots, ethnic
wars, terrorism, etc. have increased the importance of public
administration.
21
of public sector enterprises partially or fully to private companies.
Another form of LPG is disinvestment in public sector enterprises,
which is followed in India. As a result of this the public sector
enterprises find themselves in a competitive and challenging
environment. However, the role of public administration under LPG
continues to quite significant. It requires dismantling of a regime of
regulations, controls, restrictions, licences, secrecy and delay. The
bureaucracy has to play an investor friendly, responsive, transparent,
open and competitive role. So, this requires necessary administrative
reform, which should aim at elimination of redundant practices,
procedures, administrative laws and corruption. Thus, the policy of
LPG affects the role, values and skills of public bureaucracy. It also
decreases the scope of the functions of the state, resulting in minimum
of state interference in the lives of the individuals. The state is called
upon to oversee the operational side of the enterprises. This gives the
state a new role as regulator.
22
with other segments of the society. The accent is also on promotion of
greater public participation. Yet, it is still accountable for the outcomes
of all the activities in which it participates directly or indirectly.
1.10 CONCLUSION
23
efficiency, encourages investment – and thus new growth and
employment – and frees public resources for development of
infrastructure and social programmes.
Red Tape: The ribbon that was once used to bind government
documents; the term now stands as the symbol of excessive official
formality and over attention to prescribed routines.
Regulation: The totality of government controls on the social and
economic activities of its citizens; the rulemaking process of those
administrative agencies charged with the official interpretation of laws.
Synergy: The enhanced result of two or more people, groups or
organisation working together. In other worlds one of one equals three!
it comes from the Greek “Synergia”, which means joint work and
cooperative action. The word is used quite often to mean that
combining forces produces a better product.
1.12 Activities
24
1. Consider public administrative operations with which you
have recently dwelt or are familiar as a functionary or as a
citizen.
25
CHAPTER – II
monarchical system. Since the earliest times, the monarchical system was
rose and fell. However, there are two basic features of the Indian administrative
system which continued right down the ages- the importance of the villages as
the king during the ancient period in India. During the Vedic period the king was
friends and principal officers. There is a reference regarding this in the two
account about the offices of the state for the first time in the history of India. By
this time administrative system was fully developed. Thus the development of
22
the ancient Indian administration had reached its peak during the reigns
further developed during the period of the Guptas. Their period witnessed
this, empires were divided into provinces, provinces into districts and districts
into urban and rural centers from administrative angle. During the ancient
times the number of such departments was limited. Gradually, the number of
such departments increased and their jurisdiction extended. For this we get
member of the elite group were given special emphasis. During the time there
existed the organisation of a central office where all the government records
were kept. This was like the secretariat of the government, in which various
23
is found in Mauryan times and Chola kingdom. The king appointed personal
secretary as well. In brief, the main function of the central office was the control
In brief, it can be said that the present Indian administration is the result
of a rich legacy and continuity. It is true to say that the steps of its evolution are
someway or the other connected with the past. However, the existing
government.
Indian 'Administration' traces its earliest known form to the tribal system
treatises. In the early Vedic period there were many tribes who elected their
own chiefs and he handled all their responsibilities and the administration of the
tribes and the Sabha (Assembly of elders) and Samiti (Assembly of people)
were the tribal assemblies. The chief protected the tribe but had no revenue
system or hold over land thus wars were resorted to and the booty shared
The first form of the 'State' in India can be traced back to the times of
appointed Manu as King and paid service fees as taxes for looking after them
and ensuring mutual benefit and justice to everyone in society owing to his
24
wisdom and philosophical attitude and the King was divine and regarded as
portray the role of the King as the whole and sole of administration being
helped by his principal officers who were the Purohit and Senani where the
Purohit (Priest) wielded much more authority than the kshatriya (Warrior
clan) kings. Other figures of administration were Treasurer, Steward, Spies and
No legal institutions were there and the custom of the country prevailed
as the law and capital punishment was not practiced but trials took place where
justice was delivered by the King in consultancy with the Priest and Elders at
times. By the time Kautilya wrote the Artha Shastra the Indian Administrative
system was well developed and the treatise of Kautilya gives a very first
Kautilya's Arthashastra :
very important role as the base of administration since ancient times. Empires
were divided into provinces, provinces into districts, districts into rural and
v) Conduct of courtiers.
viii) Concerning vices of the king and calamities that may arise as a
consequence
x) Relating to a war.
26
xiii) Strategic way of capturing a fort
xiv) Secret means like occult practices and remedies to keep of enemies or
traitors.
xv) Plan of the treatise and thirty two methods of treating a subject.5
Minister, Country, fort, treasury, army, friend and enemy. And State's prime
function was to maintain law and order, punishing wrong doers and protecting
subjects.
administrative unit under direct control of the central government and four to
divided into districts, districts into rural and urban centres with a whole lot of
policy were created in all of these divisions with specialists dominating in the
Mauryan era. Elites were preferred in job recruitment and the procedure for
centre just like the cabinet secretariat and this performed audit and inspection
functions of the three tiers of government that is local, state and central.
This set up is very much similar to our present times where Union
Territories and National Capital Territory are administrative units under Central
27
rule where representative of the centre in the form of administrators or
Lieutenant Governor appointed by the President rule the affairs under the direct
supervision of the President and Central government. The states are under a
the sovereign power lies in the country's people. Also, the federal setup of
powers given to states under the state list, and the district administration
organisation and hierarchy. Civil servants were recruited to perform the duties
of policy implementation.
King was the head and his functions were military, judicial, legislative
statecraft and the three Vedas. kautilya stated that whatever pleases the king
only is to be avoided and only that which pleases the people is what needs to
be followed. Kautilya stated that the king was like the Father and all the people
or subjects of the country or empire were his children. This show how he take
modern times.
Corruption was not tolerated at all and dealt with severely where the ill-
earned money was confiscated. Kautilya had his own criteria for selection of
officers for the same. Once basic qualifications were met he tested them on
their attitude to piety, lucre or revenue, lust, fear. Those who completed this
crossed the test of revenue became revenue collectors, and those pass the test
28
of lust are appointed to the king's harem, The candidates passing the test of
fear are appointed as king's bodyguards and personal staff. And those who
Dharmasthya (civil cases court) where the matters are disposed off on basis of
eye witness of spies, etc. Similar to today's times where there are separate
Agriculture was the mainstay and taxes on the goods produced as well
as its imports and exports were the source of revenue and the expenditure
many respects.
29
Links between Kautilyan Administration and Modern Personnel
1) Personnel Administration :
were clearly spelled out of ministers and government officials. It also stated a
transferred from time to time as per Kautilya because it would avoid corruption
and ministers were at the pleasure of the King just like the Governor and
Attorney General, etc. hold office at a term that specifies ' pleasure of the
President'.
2) Public Administration :
The King is the sole source of authority and appoints and dismisses
personnel and divides the work of govt. into different ministries under several
ministers and officials. Kautilya stresses on the need for specialist and
to the King, thus talks about division of labour and coordination between them
recruitment, pay and terms and conditions of service very much resembling the
modern State.
Kautilyan model talks about collecting revenue and employing activities to help
30
in expediting and ensuring revenue, so it talksmainly of control instead
of development. It talks about local self government that very much resembles
conduct State affairs rather than focusing on the philosophy that underlies it.
He is very practical in his approach with a strict focus on amorality so that the
King's rule and administration are neutral without offending anyone, and also
Mughal Administration :
The Mughal administration was the most organised and long lasting and
has even carried on to the modern times. The reason for this stability was the
long lasting more than 3 centuries rule of the Mughal sultanat. Akbar was the
architect of this system since his grandfather and father Babur and Humayun
respectively had their hands full with battles and socio-economic uncertainties
The Mughal administration did carry forward a lot of the earlier traditions
above but they upheld greater centralization and a rigid structure without
31
paying much interest to social services of health and welfare as also morals as
compared to the Mauryan rulers. Theirs was an Islamic state and right from the
arrangements to the titles of officials all was imported wholesale from the
Person-Arab crescent of khalifs of Iran and Egypt. However, even though the
recruitment was mainly based on caste and kin they also did recognize merit
and talent and did open up the civil services for Hindu people. It's source of
revenue was taxation on land and agriculture and was highly urbanized. In the
lower levels like of politics, village and lower levels of officials the Indian usage
and customary practices were allowed whereas at the court or darbar and in
The sovereign was the king who was paternalistic and he had supreme
and assist him in the discharge of his functions, out of which the more
important were four- the Diwan who was in charge of revenue and finance, the
Mir Bakshi at the head of the military department, the Mir Saman in charge of
factories and stores, and the Sadr-us-Sudur who was the head of the
officials. The main functions of the officials were to maintain law and order,
safeguard the King's interests from internal uprising and revolts, defend and
profit and expected to supply certain number of troops for State military service)
32
thus the bureaucracy was essentially monetary in character. The officials
Each grade carried a certain rate of pay, from which its holder was to provide a
quota of horses, elephants, etc and the State service was neither hereditary nor
matters.9
The pay was received in form of either cash or jagir for a temporary
period from which he could collect revenue equivalent to his salary. Thus, the
jagirs though having no hold over the land extracted revenue at their whims
Mansabdari system. And apart from that there were the knights who were
called the gentleman troopers and owed exclusive allegiance to the King. The
cavalry was the most important unit, the infantry was made up of townsmen
and peasants and the artillery with guns and the Navy. The corruption within
the army where the soldiers played more allegiance to the immediate boss
rather than the king proved to be its undoing and thus could be easily
and subordinates in villages and to Kotwals in cities and towns. And at the
district level the faujdars took over. It was a precursor to modern policing
system of India.
33
The administration at the Centre was personal and paternal and
operated with a fair degree of efficiency as long as the King kept an eye and
controlled effectively. The two highest officials were the Vakil and the Wazir of
which the former was higher in position and functioned as the regent of the
The Wazir was the head of the revenue department and was known as
administrative wing supervising work of all high officials. All provincial diwans
and their subordinates reported to him and he signed and authorised all
government and the Waqia Navis kept a record of all important farmers.
The Khan-i-Saman was the high steward of the royal expenditure and
the Mir-i-Bakshi who was the paymaster General of the empire. The Provincial
or State Administration was also known as Subahs (for states or provinces) and
was headed by the Subedar or the Governor. He was appointed by the King
and was given a office insignia and instrument of instructions which defined the
provincial administrative staff and ensured law and order there. He also
handled local civil intelligence agencies and controlled the local zamindars and
Provincial Diwan was appointed by the central Diwan and was next in
the line of importance after the Provincial governor. He appointed Kiroris and
tehsildars to extract revenue from the ryots in time. He also exercised audit
34
functions and had full control over public expenditure. He was assisted in office
The Sadr and Qazi were two officers at provincial level who were sometimes
united in the same person but the Sadr was basically a civil judge but did not
handle all civil cases and the Qazi was concerned with civil suits in general and
The Subah or Province was further divided into Sarkars which were of
two types. One was ruled by officers appointed by the emperor and those
under the tributary rajas. Each Sarkar was headed by Faujdar, he was the
executive head who had policing and military functions and could surpass the
The Amalguzar was in charge of the revenue and the other head of the
Sarkar. The Kotwal did the policing. The qazi performed the judicial duties. The
Sarkars were further divided into parganas and the parganas further divided
into Chaklas headed by officials called Chakladars. Qanungos kept the revenue
records and the Bitikchi was the accountant and Potdar was the title of the
treasurer. This was the hierarchy for a sound and efficient administration Akbar
kept the land revenue at 1/3 and Todar Mal brought in reforms as in a standard
land, classification of land based on its fertility and fixing the rates. Justice was
administered based on the Quranic Law as the Mughal state was a Muslim
State. Fatwas were issued when required and ordinances by the emperor.
35
The principles of equity were followed and the Emperor's interpretations only
was allowed till the point it did not run contrary to the sacred laws.
Public Services
1947 but there still are certain features that we can see as a legacy of the
British times continuing for the sake of its efficient practices and no other better
Under the charter (official paper) of the British crown the East India
Company came to India with the sole objective of making profit through
commercial exchanges. The established factories here and for their protection
set up a small base of soldiers. They started looking for monopolizing their
profits in India as her market and resources were unmatched. This led to the
initial tussle with Bengal Nawab and the event of Battle of Plessey paved the
way for the same. The company officials convinced the company directors that
if they interfered and got a say in local policy making in India then it would lead
the office of the District Collector and established the office of the District judge.
comprehensive.
36
Lord Wellesley's rule period saw the emergence of the office of the Chief
1800s could be seen as an era where company officials focused all their
Secretariat saw the light of the day under Lord Bentick's rule. Under the Charter
General of India and policy formulation was centralized for all territories under
headquarter and its various field units and formal units of organisation. 1844
little later on under Lord Dalhousie the setting up pf Post and Telegraph
Services, Railways and Public Work Departments. The Doctrine of lapse theory
of Dalhousie very blatantly spelled out the objective of the company in India as
to have absolute control over the policy process in Indian States. Thus all these
establishments and policies helped the English to set up a strong base in India
and institutions and interference in legislation and policy making even in the
remotest of areas.
37
The Revolt of 1857 then shook up this system and that led to the end of
the British East India Company's rule in India. The government of India Act
1858 passed in the British parliament led to the company's dissolution and all
powers transferred to the British Crown which then created an India Office in
India and a Secretary of State post was established with Indian governance
Viceroy General of India (Chief Administrator of the British Crown in India) who
implemented the policies devised by the India office which actually only had the
role of passing on orders of the British Parliament. Military was reorganized and
more higher caste officials were appointed at the higher levels and lower level
occupied by lower caste as well as Europeans held the titular positions in the
army. All this was done to avoid another mutiny so that communication is
So, in short the British East India Company paved the way for the British
removed and the British government directly entered the Indian domain.
Impey devised a civil procedure code and Macaulay devised the Indian
Penal Code, Contract Act and Indian Council Act. The enactment of the
immense joy to the local rajas and people as they thought that now all the
English officers would function under a code of conduct and there will be
press act, Relationship codes, Transfer rights, etc. Thus, this era of late 1800's
38
for the smooth functioning of the British officials as they felt that no rules and
regulations earlier led to the situation of disarray and sepoy mutiny or revolt.
There was also the demand of Indian initiation of the Civil services that was first
Indians and Indian associations. Thus, for this purpose the Aitchison
Commission recommended the induction of 25% Indians into the ICS, but this
only remained on paper. The Islington Commission was appointed in 1912 and
its repirt, submitted in 1915 recommended a scheme of 2 entry paths to the civil
services. One was for insuring induction of natives of India through competitive
exams and the other exam for superior ICS and Home services preliminary
exam to be conducted in England was open to all. The Civil services was under
The Govt. Of India Act in 1919, created the All India Services replacing
the imperial civil services format. This act also advocated the setting up of
Public Service Commissions in India. The provincial civil services were under
services were advocated for removal from the classification of civil services and
positions only by Indians. So, basically it was a system to prevent Indians from
entering the higher civil services as everybody could not afford to go to England
for training and exam purpose and the lower levels were more approachable
39
little scope of success for non-westernised Indians. On the recommendation of
the Lee Commission, the first Public Service Commission was setup at
Europeans and Indians to fill up the superior ICS and the rest 20% to be filled
up with promotions from the provincial Indian sub ordinate services. Thus he
advocated 60% Indians. This led to the Britisher’s losing interest in joining the
the services increased gradually. The Govt. Of India Act 1935 provided for the
similar institutions at the state levels. This was the realisation of giving the All
India Service an Indian flavour and towards the Indianisation of Civil Services.
canning and arrangement of departments under Lord Mayo, Lord Lytton and
Lord Ripon. Tenure arrangement was introduced under the Secretariat staffing
After the battle of Buxar ended with the treaty of Allahabad, the company
obtained "Diwani" rights from Shah Alam II and was legally authorised to issue
dastaks in the name of the King thus paving the way for the company officials
40
This very event began the evolution of the system of district
arrangement that we see today. The District Collector's office was established
in 1772 and it played a leading role in stabilizing the company's hold over the
created as the apex advisory body for suggesting scheme of Land Revenue
Settlement. This is where we see the shift of the company major from
North India.
This term originated during British rule. Lord Ripon is called the father of
local self government in India but was unable to push for major reforms. They
norms prevailing.
administration as well as revenue collection for the British but was still under
41
the total control of the District collector and red tapism and corruption plagued it
and funds crunch was always there as a deliberate attempt by the British to
stranglehold the provincial Indian governments from having control over them
So, the local self government though had control over certain aspects
but in the others it was just a pawn of the British government for their colonial
benefits.
The present administrative system in India was evolved during the East
India Company’s rule in the country. This period will be divided into two parts
for study purposes. First, the East India Company’s rule upto 1857 and second,
the British government rule from 1858 up to 1947. The East India Company
came to India for purely business purposes, but later took over the government
of the country. The end of the company rule came in 1858 with the taking over
of the government by the British Crown. These are some of the very important
Aurangzeb in 1707, the Mugha1 empire began to disintegrate and the central
administration became paralysed. The small rulers who earlier accepted the
India Company took advantage of this situation and established its hold over
several parts of the country. The battle of Plassey in 1757 paved the way for
The East India Company in the year 1765 secured the Diwani rights of
Bengal, Bihar, and Orissa, but it did not change the administration of these
established rapport with the people through their own officers and this led to the
1772 they appointed ‘Supervisors’ in each bigger district, who were later
the districts under Collectors. These collectors were responsible for collection
of land revenue, dispensation of civic justice and magisterial work, etc. This
office is a most significant one, even today. In the year 1829, Divisional
group of districts and this was the beginning of the Divisional Commissioner
system, which is still in vogue in present states. Four years after receiving the
‘Diwani; the conferment of which did not ‘ipso facto’ make the company a
sovereign authority in Bengal. Bihar and Orissa but which led the way to
exercise of such authority, it did not make any move in respect of organizing
the government which was now in a state of virtual collapse. But from 1769
onwards, the Company started making experiments in this regard. At first, they
proved to be not only ineffectual but also almost disastrous. By 1786, however,
it appeared to have groped its way into the right direction. But even then further
experiments had to be made to make the structure efficient and well organised
and the administration stable and strong. Though the Company had control
over some of the Indian provinces, the administration was unstable and not so
good. The result was the passing of various Acts by the British Government.
43
For the purpose of study of the evolution of the Indian administrative system
during this period, we shall divide it into the following two periods:
Before 1773 there was no central authority in the country. The 1773 Act
restricted the powers of the presidencies from making war or treaties without
Parliament’s control over East India Company’s affairs. The Pitt’s India Act of
1784 placed Indian Affairs under the direct control of the British Government,
court of Directors. The Court of Directors of the East India Company were
required to pay due obedience (and be) governed and bound by such orders as
they shall from time to time. receive from the said board.” The appointment of
Governor-General was made by the directors with the approval of the Crown.
The position of the Governor-General became very difficult with the introduction
of the system of dual control. This system with some modifications remained in
operation till 1858. As a result the Company’s administration became not only
India, Act, 1858 and passed on to the Crown. The Board of Control and the
Court of Directors, both were abolished and their powers were given to the
newly created office of the Secretary of State for India. His office was known as
The governments work increased and its pressure was felt by the
was also consulted: the finance department would advise on matters relating to
finance and expenditure, so also the home department for matters relating to
department did not agree, the matter was referred to the Governor-General.
was necessary. The Portfolio system, in the first place increased efficiency and
speed of the government work. Second, the members of the council were
The Act of 1861 enlarged the Executive Council of the Governor General
by adding a fifth as the law member and he was given power: to conveniently
transact the business. This Act tried to render the Executive Government too
The Act of 1870 also empowered the governor general to suspend such
45
measures of resolutions of the Councils which may have the interest of British
possessions in India. The Indian Council Act of 1892 enlarged the function and
members, of the legislative Councils, but not implemented into. Two fifths of the
principle of election in an indirect manner. Although the Act did not provide for
direct election, the mode of indirect election produced a result which turned the
balance of power against the landed aristocracy and placed legal Practitioner in
the dominant position. The Act of 1909, popularly known as the Morley-Minto
Reforms. carried the above policy further. The Act increased the size of the
legislative councils at all levels. They still remained deliberative bodies only.
The indirect election system continued but for the first time separate
authorities.
local people’s capability to run the local affairs. A further step in the direction of
various provinces between 1871 and 1874 to relieve the burden on imperial
finances by levying local rates and cesses and also extended the elective
46
principle. The next important step was taken during the viceroyalty of Ripon,
who has been called the ‘Father of Local Self Government In India’.14
In 1882, the famous Ripon Resolution for local self Government was
India, till 1947. The resolution said. “It is only primarily with a view to
The result was enactment of series of Municipal Acts and enactments for rural
areas.
measures for their revival and growth. It also recommended the lessening of
government control over local bodies and augmenting the sources of income of
these bodies but neither the government of India nor the provincial
stated that local bodies would be made autonomous and outside control would
be minimal.
The Government of India Act, 1919 introduced the bicameral system and
demarcated the central and provincial subjects. The central list consisted of
important subjects such as defence, foreign affairs, tariff and customs, railways,
47
post and telegraphs, income tax, currency and coinage, all India services, etc.
The Provincial list included local self-government, public health, public works,
justice, excise & fisheries, etc. The Provincial subjects were further divided into
were placed under the charge of counselors, who along with governor were
made responsible to the Secretary of State and the Central legislature. The
power between the Governor-General in- Council and the governor acting on
the advice of his ministers responsible to the provincial legislative council was
called dyarchy. This reform reduced the control of Secretary of State for India,
subjects were concerned; but as regards “reserved” subjects, there had been
no change. This Act was a step to provide opportunity to Indians to take charge
principles. First, the central and provincial spheres were demarcated and
the most suitable for experiment of self government. Third, an attempt was
made to give an effective voice to the people in the conduct of the Central
Government.
The Government of India Act, 1935 had two basic concepts: one
Provincial autonomy and the other, an all India federation. In the structure of
48
the Home Government, some changes were made. The Indian Council was
dissolved and to take its place, there was to be a set of advisers to the
Secretary of State for India, whose number was fixed between three and six.
The Secretary of State had the right to consult these advisers individually or
collectively. The Act provided for the introduction of dyarchy at the centre,
whereas the system of dyarchy in the provinces, was abolished. The federal
executive was made partly responsible to the federal legislature. The executive
and tribal affairs and were responsible to the Governor-General and not to the
federal legislature. The governor General would interfere in the work of the
remaining subjects in the federal legislature, on the ground that it affected the
discharge of his special responsibilities. But this was never done as the
Under the federal set-up, the subjects were divided into three lists, the
Federal, Provincial and Concurrent list. In the Federal list there were 59
subjects of administration related to the centre. The Provincial list had 54 items
subjects was common for the central and provincial governments. These
provisions of the Act at the central level could not be implemented, but at the
Inspite of the failure of the federal provisions of, the Act, the Government
of India continued its working under the provisions of the Act of 1919 with
certain modifications, till the Indian Independence Act of 1947 came into force.
In Britain, the Labour Party came to power after the 1945 elections and initiated
49
a new approach. The imprisoned Indian leaders were set free; elections were
held to the central and provincial legislatures; and popular ministries were
The famous Cabinet Mission Plan was published on May 16, 1946. An
interim government was formed in 1946, With Jawaharlal Nehru as its Vice-
President. The Muslim League initially declined to join the Interim government
but later agreed. Further, elections were held to the Constitutional Assembly
which met at Delhi in December 1946, but the Muslim League boycotted it, in
formulated his scheme for the partition of the country. On 18th July, the British
Parliament passed the Indian Independence Act, 1947 and at mid-night on 15th
August 1947. India became a free nation. The new constitution was adopted on
A Constitution represents a higher law of the land. The civil, criminal and
other varieties of administrative laws are enacted within the parameters of this
higher law which can be amended by the sovereign Parliament of the nation. In
India, the independent judiciary is the guardian of the Constitution and its
ordinances and codes and manuals, etc., are the creatures of subordinate law
which has to be congruent with parliamentary statues and other dictates of the
constitutional bodies.
their working, but being a part of the executive wing of the government, the
Constitutions of the world did very little to reconcile the administrative legacies
establish.
democratic frame the administrative institutions and behaviors are taking their
change in free India. The district administration and politics about which the
Indian Constitution was meaningfully silent in 1950 has now been amended to
induct Panchayati Raj Polity in 1993 to usher into a new era of administration in
respective operations.
51
2) The constitutional framework within which the political institutions of
goals which the people keep prescribing for themselves through their
elected representatives.
organisations which have to operate under the regime of rule of law and
All this implies that politics and administration are the creatures of the
Constitution and hence subordinate to it. The people elect the members of
run the government, which in turn should take the services of the administrators
to implement the law an their policies for the good governance of the people.
The legislature, executive and judiciary all the three are the best judge in
political executive has to work under its control and supervision, but the other
wings of government and the people who are the beneficiaries and victims of
52
The Indian Constitution besides being detailed and bulky elaborately
Fundamental Rights and Duties and enjoins upon the future governments to
that has proliferated must permeate with the spirit of the Constitution, which
Parliament must feel, executive should obey and the judiciary must defend and
preserve. The philosophy of the Indian Constitution can be understood from the
control of the secretary of state for India with the help of a bureaucratic
apparatus. The Indian Council Act 1861 expanded the size of the Executive
the colony.
was the Morley Minto reform of 1909 when the Council System was given the
Morley firmly declined that the reform had any intention to introduce a
bisecting the subjects into reserved and transferred. The former part was to be
controlled by the Governor with the half of his ICS advisers while the latter
variety of restraints and constraints. The reforms relaxed central control over
Even the so-called liberalisation, expansion and Indianisation did not restrain
the powers of the Governor-General and the Governors, who reduced the
entire scheme to a force. The Gandhian era witnessed all sorts of proposals
respectively. The 1935 Federation though unborn, laid the foundation of the
54
The Republican Constitution of India was prepared and passed by the
Plan of 1945. But then its demand can be traced back to Mahatma Gandhi’s
the Nehru Report attempted to draw a Constitution of India under the Chair-
1942 gave respectability to this legitimate demand of Indian. While the World
War II was on and the Japanese were knocking at the doors of India the
following form :
3) That there should be one Indian Union comprising all the provinces and
55
4) That any province (or Indian state) which was not prepared to accept the
that time and with such non-accepting provinces the British government
proposals. The Muslim League argued that India should be divided into two
He advised him to take next plane home. The efforts were renewed in
1945 when the government of Earl Atlee sent a Cabinet Mission under the
along with Sir Stafford and A.V. Alexander presented the Cabinet Mission Plan
League leaders about the details, which could not be sorted out in earlier Simla
1) There would be a Union of India, comprising both British India and the
major communal issue in the legislature would require for its decision a
and voting as well as a majority of all the members present and voting.
Mission that it would be adopted by agreement between the two major parties.
An explosive situation arose after the election for forming the Constituent
Assembly was held. The Muslim League joined the election and its candidates
were returned. But a difference of opinion had in the meantime arisen between
the Congress and the League regarding the interpretation of the ‘grouping
57
The British government intervened at this stage and explained to the
leaders but League members did not attend the Constituent Assembly meeting.
The League urged for the dissolution of the Constituent Assembly on the
ground that it was not fully representative of all sections of the people of India.
that British rule in India would in any case end by June 1948, after which the
British would certainly transfer authority to Indian hands; and if by that time a
accordance with the proposals made by the cabinet delegation which internal
stated.
the Central government in British India should be handed over, on the due
date, whether as a whole to some form of Central government for British India,
seems most reasonable and in the best interests of the Indian people.
Still the League did not consider it necessary to join this assembly, and
went on pressing for another Constituent Assembly for ‘Muslim’. The British
General, in place of Lord Wavell, to expedite transfer of power, for which they
had fixed a time limit. Lord Mountbatten brought the Congress and the League
into a definite agreement that the two ‘problem’ provinces of the Punjab and
58
The League would then get its Pakistan – which the Cabinet Mission had
denied by excluding Assam, East Punjab and West Bengal, while the Congress
which was taken a the representative of the people of India other than the
Muslims would get the rest of India where the Muslims were in minority.
The actual decisions as to whether the two provinces of the Punjab and
Bengal were to be partitioned was, however, left to the vote of the members of
Indianization of Administration :
India became independent in August 1947 with the end of the British
rule. A new Constitution was framed and adopted on January 26 1950 and
India became a republic. The pertinent question is what was the new republic
like, and what was handed over by Britisher’s along with the power’ The answer
of these questions can be found easily during the period Britisher’s governed
happy to get rid of the colonial rule it was soon realised that the governmental
of meeting all the needs of the country therefore, the same administrative
system was maintained even after independence of course, with some changes
as per the requirements of the time. The main features of the British
Federal Structure :
The federal structure of the Indian Constitution has its roots in the
Government of India Act of 1935. The Constitutional history of India shows, that
‘reserved’ subjects meant for officials under the Governors. Thus, a ‘dyarchy’
system was the main characteristic of the Act of 1919, sowing the seeds of
Act 1935, added three contributions to the political development in the country:
centre, third, it established a Federal Court. The Act of 1935 provided in its 451
clauses, a model for the Indian Constitution of 1950. Thus, the type of
1. Globalization.
2. Increasing disparities.
witnessed major developments in the social and the economic fields. The
Government today is no longer playing the traditional role of a regulator. Its role
provider.
2. Changing environment.
after independence.
Several Commissions and Committees have gone into the subject, and
suggested various measures. Major reforms have been brought about based
as follows:
Goplaswami Ayyangar
(ARC) was set up in 1966. The ARC set up 20 study teams, 13 working groups
2. Personnel Administration.
4. Centre-State Relations.
5. State Administration.
8. Economic Administration.
62
10. Delegation of Financial and Administrative Powers.
11. Railways.
1976.
August 2005.
administration system
following.
2. Ethics in Governance.
realities.
64
NOTES AND REFERENCES
2010.
munchen oldenbourg1965.
10. Madan, T.N. (ed.), Religion in India. New India, New Delhi: Oxford
65
13. M.P. Sharma. Recent experiments in Local Self Government in India.
p-104.
14. Weaver. K., Ending Welfare as we know it, Washington. Dc. Brookings
15. Sankari Prasad singh Deo. V. union of India, AIR 195 sc 458.
66
https://t.me/UPSC_PDF www.UPSCPDF.com https://t.me/UPSC_PDF
Student Notes:
Student Notes:
1. Public Policy
1.1. What is Public Policy?
Public Policy is a proposed course of action of a government within a given environment
providing opportunities and obstacles which the policy aims to utilize and overcome to realize a
given role.
The above definition clearly states that public policies are governmental decisions and resultant
actions in pursuance of certain goals and objective. It requires a thoroughly close knit relation
and interaction between the important governmental agencies - the political executive,
legislature, bureaucracy and judiciary.
Student Notes:
Student Notes:
The first major goal of public policy in India has been in the area of socio-economic
development. Major policy formulation was done in the area of industrial and agricultural
development.
In addition to socio-economic challenges, India also faced internal and external security threats.
Regionalism, for example, have risen to fissiparous tendencies. This lead to formulation of
defense policies to maintain national integration and create greater national cohesiveness.
However, formulating an all-encompassing policy in India has been a difficult process. By very
nature, policies have been contradictory. What may be rational for economic development may
not be so for national integration. Thus, the need for strong centre to cope with external
threats is important but it may go against the principle of decentralization which provides for
greater national cohesion of a heterogeneous society.
The Five Year Plans (FYPs) focused on key elements for development in India. For instance,
while 1st FYP focused primarily on agriculture, second one aimed for massive industrialization
of the country. In subsequent plans, focus areas included – industrial growth, agricultural
productivity, defense expenditure, exports, public development expenditures, poverty, rural
development, infrastructure, market reforms and social infrastructure among other things.
Achievements of planned development
• Higher rate of growth: In the pre-plan era, India was stuck in Low equilibrium trap. Later
the growth rate improved, but still lagged behind the global average and was derided as
‘Hindu growth rate’. Post LPG reforms, the growth rate improved massively. In the period
between 2002 - 2014, it also witnessed many years of double digit growth.
• Increase in national income and per capita income: Today India is 3rd largest economy in
PPP terms. Also the per capita income has seen massive jump over the decades.
• Development of Economic Infrastructure: Five-year plans laid the foundation for
development of economic infrastructure which include transportation, power generation,
communication etc.
• Social Infrastructure: Average life expectancy for both male and female has improved
substantially. Infant Mortality Rate and Maternal Mortality rate has dropped significantly.
India has been successful in eliminating debilitating disease like Polio and small pox.
• Self-sustainability in agriculture: India faced severe food scarcity in 1960s. It has to depend
upon foreign food aid. This forced government to usher in Green revolution and Operation
Flood. Currently, India produces surplus food grains.
• Savings and Interest: The saving rates were paltry 8-9% of GDP in 1950-51. Currently it is
more 30% of GDP.
• In addition to this, India became a self- sufficient economy, hot destination for foreign
investment, and witnessed development of basic and capital goods industries.
Failures of planned development
• Economic Inequality and Social Injustice: Even
after 7 decades of independence, more than 22%
of population lives below poverty line. The figure
is dismal even after the benchmark for poverty is
kept very low. While India also has 3rd largest
population of billionaire. The inequality has never
been so stark.
• Unemployment: India has witnessed the
phenomena of ‘Jobless growth’. Even after years
of being tagged as fastest growing economy, the rate of job creation is merely 2%.
Student Notes:
• Slow growth in production sector: Priority should have been given to the development of
agriculture in all the plans, but it was not done. Capital intensive industries in urban areas
were given precedence over small scale industries in the rural areas.
• Inefficient administration: According to an UN report, one of the short comings of plan
years has been the laggard implementation. Plans were formulated after good deal of
discussion and deliberation but their targets are not achieved due to inefficient
administration, dishonesty, vested interest and red tapism.
• No mechanism of feedback, monitoring and evaluation: All the plans were formulated by a
single body (Planning Commission) without much field studies to analyze effectiveness of
preceding plans. Also there was certain high-handedness in policy formulation with little
consultations with stakeholders like state governments.
• Standard of Living: The per capita income has not increased, while inflation has paralyzed
the life of middle and lower class. Urban space has witnessed proliferation of slums with
issues of sanitation, crime against women and child.
Student Notes:
Loan waiver is poor economic policy. It creates moral hazard for the farmers and puts
banking sector under stress.
• Lack of imagination: Public policy-making in India has frequently been characterized by a
failure to anticipate needs, impacts, or reactions which could have reasonably been
foreseen, thus impeding economic development. Policies have been reversed or changed
more frequently than warranted by exogenous changes or new information.
Student Notes:
• Notably, in most of these councils and boards, there is no representation of trade unions,
Labour federations or civil society organizations. By and large, in these emerging policy
networks formal mechanisms or spaces for involvement of civil society have been few and
far between.
• This is hardly surprising, given the critique of the neo-liberal framework from sections of
civil society, and the unease that has been the hallmark of State- civil society relations in
India where the State has towered and civil society remained at the margins.
• However, a few institutions, such as the National Advisory Council (NAC), have surfaced,
which facilitate government-civil society networking. The NAC has played a critical role in
bringing in legislations such as Right to Information, Mahatma Gandhi Rural Employment
Guarantee Act (MNREGA), among others.
• Increasingly, there is a visible change in the government’s approach to formally involve civil
society actors in policy networks. This trend is evident in all the flagship programmes of the
government, be it the MNREGA, or as reflected in the National Voluntary Sector Policy
2011, which outlines an ambitious plan of the government to engage developmental civil
society at multiple levels, from policy formulation to implementation and monitoring.
• In addition to this, implementation of the 73rd Amendment Act and the arrival of
Panchayati Raj Institutions too drove the State to actively seek partnership with civil society
actors.
Student Notes:
Student Notes:
• Pradhan Mantri LPG Panchayat: After the success of PMUY, government launched Pradhan
Mantri LPG Panchayat which is an interactive communication platform for rural LPG users
on various subjects like safe usage of LPG, its benefit to environment, women
empowerment and women health, and also to use the forum to motivate the consumers to
use LPG regularly as a clean cooking fuel.
3.1.5. Deen Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
• This scheme focuses on feeder separation (rural households & agricultural) and
strengthening of sub-transmission & distribution infrastructure including metering at all
levels in rural areas. This will help in providing round the clock power to rural households
and adequate power to agricultural consumers.
• The earlier scheme for rural electrification viz. Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY) has been subsumed in the new scheme as its rural electrification component.
• Out of the 18,452 villages chosen for electrification, the government claimed that 15,183
villages had been connected to the grid by December 2017.
Student Notes:
Student Notes:
• The goal is to develop three Adarsh Grams by March 2019, of which one would be achieved
by 2016. Thereafter, five such Adarsh Grams (one per year) will be selected and developed
by 2024.
• Far beyond mere infrastructure development, SAGY aims at instilling certain values in the
villages and their people so that they get transformed into models for others
Student Notes:
Student Notes:
• AMRUT is aimed at transforming 500 cities and towns into efficient urban living spaces over
a period of five years. Ministry of Urban Development has selected the five hundred cities
with the help of state governments.
• A project oriented development approach is adopted under the scheme in contrast to the
area based approach of Smart Cities Mission.
• The Cabinet approved Rs 50,000 crore for this mission which is to be spent over a period
five years. This is a centrally sponsored scheme with 80% budgetary support from the
Centre.
• Mission of AMRUT is to (i) ensure that every household has access to a tap with assured
supply of water and a sewerage connection; (ii) increase the amenity value of cities by
developing greenery and well maintained open spaces (e.g. parks); and (iii) reduce pollution
by switching to public transport or constructing facilities for non-motorized transport (e.g.
walking and cycling).
Student Notes:
rehabilitation and affordable housing to Economically Weaker Sections are the major
features of the project.
• The programme has following components:
o Slum rehabilitation of Slum Dwellers with participation of private developers using land
as a resource;
o Promotion of Affordable Housing for weaker section through credit linked subsidy;
o Affordable housing in partnership with Public & Private sectors and
o Subsidy for beneficiary-led individual house construction or enhancement.
3.2.4. Heritage City Development and Augmentation Yojana (HRIDAY)
• The HRIDAY scheme is launched for the holistic development of heritage cities. It aims to
preserve and revitalize the unique character of heritage cities in India.
• For the first phase of the programme Rs. 500 crore is allocated with full funding by the
central government. Twelve cities—including Ajmer, Amaravati, Amritsar etc. are identified
for the project.
Student Notes:
• Shifting Emphasis from Training to Career Progression: Pioneers in providing incentives for
job retention, career progression and foreign placements.
• Greater Support for Placed Candidates: Post-placement support, migration support and
alumni network.
• Proactive Approach to Build Placement Partnerships: Guaranteed Placement for at least
75% trained candidates.
• Enhancing the Capacity of Implementation Partners: Nurturing new training service
providers and developing their skills.
• Regional Focus:
o Greater emphasis on projects for poor rural youth in Jammu and Kashmir (HIMAYAT)
o The North-East region and 27 Left-Wing Extremist (LWE) districts (ROSHINI)
• Standards-led Delivery: All program activities are subject to Standard Operating Procedures
that are not open to interpretation by local inspectors. All inspections are supported by
geo-tagged, time stamped videos/photographs.
3.3.3. Financial Assistance for Skill Training of Persons with Disabilities
• The Scheme aims at providing financial assistance for skill training for persons with
disabilities.
• The scheme covers Persons with Disabilities (PwDs) with not less than 40% disability and
having a disability certificate to this effect issued by a competent medical authority.
• 30% reservation for women candidates: As an endeavor to encourage women, 30% of the
total intake of each training program shall be earmarked for women candidates.
3.3.4. National Apprenticeship Promotion Scheme
• National Apprenticeship Promotion Scheme aims to promote apprenticeship training in the
country.
• Objective: The main objective of the scheme is to promote apprenticeship training and to
increase the engagement of apprentices from present 2.3 lakh to 50 lakh cumulatively by
2020.
• Scope: The scheme covers all categories of apprentices except the Graduate, Technician and
Technician (Vocational) apprentices which are covered by the scheme administered by
Ministry of Human Resource Development.
• Implementing Agency: Regional Directorates of Apprenticeship Training (RDATs) under the
control of Directorate General of Training act as implementing agencies in their regions for
Central Public Sector Undertaking and establishments operating their business in 4 or more
States. State Apprenticeship Advisers act as implementing agencies for state public sector
and private establishments under their jurisdiction.
3.3.5. Skill Development for Minorities
Following are the few schemes implemented by Ministry of Minority Affairs that aim for skill
development.
• Seekho aur Kamao (Learn & Earn): This is a placement linked skill development scheme
implemented since 2013-14 for minorities aiming to upgrade the skills of minority youth in
various modern/traditional skills depending upon their qualification, present economic
trends and market potential, which can earn them suitable employment or make them
suitably skilled to go for self-employment
• USTTAD (Upgrading the Skills and Training in Traditional Arts/ Crafts for Development):
This aims to preserve the rich heritage of traditional arts/crafts of minorities.
• Nai Manzil: The scheme aims to benefit the minority youth who do not have a formal
school leaving certificate, in order to provide them formal education and skills and enable
Student Notes:
them to seek better employment in the organized sector and thus to equip them for better
lives.
• Maulana Azad National Academy for Skills (MANAS): MANAS provides an all India level
training framework based upon tie-ups with Local/National/International training
organizations on PPP model, for imparting training to the Minority population in skill sets
that are in line with emerging market demand.
Student Notes:
Student Notes:
• Cost of intra-State transportation & handling of food grains and FPS Dealers'
margin: Central Government provide assistance to States in meeting the expenditure
incurred by them on transportation of food grains within the State and handling.
• Transparency and Accountability: Provisions have been made for disclosure of records
relating to PDS, social audits and setting up of Vigilance Committees in order to ensure
transparency and accountability.
• Food Security Allowance: Provision for food security allowance to entitled beneficiaries in
case of non-supply of entitled food grains or meals.
• Penalty: Provision for penalty on public servant or authority, to be imposed by the State
Food Commission, in case of failure to comply with the relief recommended by the District
Grievance Redressal Officer.
Student Notes:
• A mechanism for measuring key indicators for SHGs including household savings, income,
asset creation, debt reduction and productivity needs to be developed.
• With respect to Deen Dayal Upadhyaya Grameen Kaushlaya Yojna (DDU –GKY), the focus
should be on monitoring and improving the quality of placements.
Sub – group of Chief Ministers on Skill Development recommendation on DDU – GKY and
NRLM:
• Modify operational guidelines to include self-employment in agriculture and allied
vocations at par with placement in a job.
• Need for leveraging Recognition to Prior Learning (RPL) under the National Skills
Qualification Framework (NSQF). All state departments should develop plans for
assessment and certification of semi-skilled and skilled worker in agriculture and allied
fields by the Agriculture Skill Council of India (ASCI).
MGNREGA
• There is need to strengthen monitoring over the next 3 years. Additionally, social audit
facilitated by an independent unit should be made compulsory.
• Due to lack of maintenance, assets under MGREGA becomes unusable over time. Thus,
there is need to create a separate maintenance fund for community assets created under
MGNREGA.
• All technical Staff vacancies need to be filled and the personnel should have adequate
capacity to supervise assets created under the scheme.
• Data indicates that the benefits of MGREGA have been disproportionately reaped by few
states. Therefore, there is need for developing a set of inclusion, exclusion and deprivation
criteria to target the program in favour of the poorest households.
Housing
• To meet the goal of Housing for All by 2022, there is need to develop state specific plans
along with work schedules and explicitly defined targets. The plan should involve various
types of low cost and disaster resilient housing models that can use materials found in
various parts of the country.
• Another priority is to ensure that the funds are released on timely manner based on
evidences of completion of each stage of the projects. The monitoring mechanism should
be strengthened by the introduction of geo-tagged photographs of house construction as
well as compulsory social audits.
• Recently cabinet has approved provisions of interest subsidy to every household that is not
covered under PMAY –G. There is need to converge these provisions with PMAY –G.
Drinking Water and Sanitation
• To make India Open Defecation Free by 2019, 55 million household toilets and 115, 000
community toilets need to be built under Swachh Bharat Abhiyan – Gramin. Special
attention should be paid to address the inequalities with respect to sanitation access to
women, children, senior citizens and differently abled.
• Sub –group of Chief Ministers have recommended to engage a professional agency to
monitor and evaluate and extensive media campaign which encourage people to maintain
and use toilets as well as pay for the use of public toilets.
• There is need to make comprehensive analysis to assess why the Community Led Total
Sanitation (CLTS) program which has been successful in other countries and states like
Himachal Pradesh has not been scaled up at national level in India.
• Another priority should be to train and incentivize a cadre of community based sanitation
workers or Swacchta Doots as envisaged in the Swachh Bharat Mission.
Student Notes:
Energy
• To achieve the goal of electrifying every households in rural India under Deen Dayal
Upadhyaya Gram Jyoti Yojna, there is need to focus on quality, reliability, affordability and
legality of the supply in the absence of which electrification would not necessarily translate
into rural households getting real power.
• Introduction of GARV – a dashboard and mobile app for making data available to the public
on the real time basis will bring transparency.
• Further, 50 million BPL households, majority of which reside in rural India should get access
to LPG under PM Ujjwala Yojna.
Road
• Over the three years, the goals should be to connect all rural roads to all weather roads
constructed under PM Gram Sadak Yojna. In this regard, Comptroller and Auditor General
of India has made few recommendations:
o There is need to create GIS data base on rural roads.
o Discrepancies and deficiency in District Rural Road Plan needs to be addressed.
o Quality control and monitoring needs to be highlighted.
o Data captured in the Online Management, Monitoring and Accounting System
(OMMAS) should be updated on the regular basis.
Digital Connectivity and Literacy
• Along with improving connectivity, ensuring digital literacy is also crucial. In this regard, PM
Digital Saksharta Abhiyan (PMDISHA) to make 6 crores rural households digitally literate is
an important step.
• It will help them in widespread use of JAM Trinity.
Student Notes:
Student Notes:
• Ownership Titles: In a longer run, there is also need for legislation providing for conclusive
ownership titles giving protection to the owners. Rajasthan is the only state that passed
legislation in this regard.
• Dormitory Housing: It will address the housing woes of migrant workers who come to cities
without families. It will also discourage the growth of slums.
• Rental Voucher Scheme: The government is considering a rental voucher scheme for the
urban poor in 100 smart cities. In view of the fact that urban poor receive very limited
government, this scheme is an important positive step.
Urban Sanitation (Swachh Bharat)
• Municipal Solid Waste (MSW) Disposal: Mountains of waste which lie around all cities in
India is a serious public health issue. On the methods of final disposal, options such as
Biogas and composting are not sustainable solutions in larger cities since they generate by-
products and residues in high volumes.
• Only incineration, also called Waste to Energy, thermal pyrolysis and plasma gasification
technologies offer sustainable disposal solutions. Considering India’s highly diverse waste
generation and high cost of plasma technology, incineration offers best solution.
• Report of the Sub- group of Chief Ministers on Swachh Bharat Abhiyan, recommends
Waste to Energy Plants in big municipalities and cluster of municipalities and composting
method of waste disposal for smaller towns and rural areas.
• Niti Aayog also recommends setting up an authority named Waste to Energy Corporation
of India (WECI), on the lines of National Highway Authority of India.
Urban Transport
• Indian roads are notorious for being pedestrian unfriendly, poorly surfaced, congested and
constantly dug up. An important and urgent transformational reform is to draw up national
design standards and contracting standards for city roads to address these challenges.
• The flow of traffic also needs to special attention in Indian cities. Unlike western cities,
motorized vehicles in India change lanes with high frequency and in unpredictable ways.
Niti Aayog recommends running pilot projects to see if strict enforcement of traffic rules
through fines in case of violations can induce behavioral change and persuade drivers to the
benefits of obeying all rules.
• Metro rails has proved to be an efficient source of public transportation in Indian cities.
This highlights the need for a National Metro Rail Policy that will ensure that metro
projects are not run is isolation, but under overall national transportation plan.
3.5.3. Skill Development
• According to estimates, only about 2.3% of the Indian population have undergone formal
skill training as compared to UK 68%, Germany’s 75%, USA’s 52% , Japan’s 80% and South
Korea’s 96%.
• Creation of new ministry of skill development marked a paradigm towards a new trajectory.
The Skill India initiative aims to impart skills into 50 crores Indians by 2022. In addition to
this, number of schemes and policies have been initiated.
• But mere promulgation of schemes is not enough. It is estimated that our demographic
divided will last for only 25 years. Thus, India needs to significantly scale up its skill
development initiatives ensuring quality and speed with efforts from both public and
private sectors.
• Apprenticeship is an effective method for skill development as they offer efficient industry
relevant training.
Student Notes:
Student Notes:
Student Notes:
Indian scenario
• However, there is a school of thought that highlights the negative correlation between
democratic institutions and economic development. Some have maintained that
democratic regimes are in general less capable of managing effective economic
development than authoritarian regimes.
• The central premise of this reasoning stems from the observation that development
requires change, and that change affects some voters adversely. So governments
dependent on electoral support in the next election will typically tend to avoid choices that
impose hardship on significant numbers of voters.
• In India this is a norm. Election years’ witnesses’ series of populist measures targeted at
different voter groups and fiscal discipline is thrown out the window. This trend, in fact, has
corrosive impact on the Indian democracy.
• Numerous analysts are skeptical of India’s ability to leverage its democracy for national
development, arguing that special interests and inadequate per capita wealth make India
still unsuitable terrain for true democracy.
• Political commentator like Fareed Zakaria argues “What we need in politics today is not
more democracy but less." Allowing politics to be guided by the principles of the market
will save democracy from itself, particularly in a billion-person state. Especially in country
where, as Arun Shourie sometimes complains, "everyone has a veto."
• There is also the reverse argument as well. That India needs more democracy of the local,
civic kind in order to break free of its notorious bureaucratic culture of red-tape and
corruption.
• In a country as variegated as India, expanding individual freedoms and local empowerment
are the keys to more equitable development. Particularly at low incomes, Amartya Sen
famously argues in Development as Freedom, the intensity of economic needs requires the
constructive involvement of target populations to both define and exercise their rights.
Short of this, democracy is neither responsiveness nor a successful vehicle for delivery.
Democratic Lessons from China?
• Despite the fact that the North-South divide is quite stark in China, there is plenty to learn
from china - which in some ways acts more democratically than India.
• Though China lacks federal electoral democracy, its institutions focus on delivering services
to its people and foreign investors. By raising crop prices and upgrading transportation and
electricity networks, extreme poverty has fallen to under ten percent of the population.
• Locals have been involved in the design and implementation of massive micro-credit
schemes in rural China, and almost $1 billion is spent annually on alleviating urban poverty.
• In many respects, India faces similar challenges. Ranked only 133 out of 188 countries in the
UN Human Development Index, India’s per capita GDP still hovers under $1710. Its
population growth of 1.7% reduces the impact of economic growth to about 4%.
• Malnutrition is estimated as high as 40% and real literacy is well below the official 65%
statistic.
• Both India and China face rapid urbanization. Energy and water demand are greatest
challenges to India. Both fear the spreading AIDS epidemic, which could cost India a
generation in the words of Bill Gates. Like China, India’s bureaucracy either siphons or
absorbs much of the meager expenditures on social development.
Democratic Dilemma
• The situation in India poses a classic democratic dilemma of affluence or influence i.e.
those who can afford access to resources and benefit from privatization are less likely to be
interested in supporting public efforts to benefit society.
Student Notes:
• The Agriculture still accounts for 25% of GDP and involves 80% of India’s population. Thus
the real engines of widespread growth must remain in manufacturing and traditional
sectors. But excessive bureaucracy and poor infrastructure have held back opportunities to
engage the massively expanding labor force.
• The BPO economy can neither solve India’s broader governance crisis nor fund the
solutions. The sprouting of Silicon Valley style campuses will not solve the water shortage
which forces poor people to pay up to 15 times more for bottled water than the potable
drinking water to which they have no access. These are challenges that the outsourcing of
jobs to India simply cannot solve.
Where lies the solution?
• None of this implies that less democracy is the solution to India’s woes. What it instead
means is that greater accountability and transparency will allow citizens to insist on
implementation of government promises, and provide the opportunities for citizens to take
control of their economic future.
• Thus there is no contradiction between greater democracy and greater economic
liberalization and openness—the two must go hand in hand.
Need for more as well as less democracy!
• The answer to the democratic dilemma is therefore both more and less democracy. A lot
more local ownership and self-governance, with less special interest, bureaucratic and
other distortions at the top.
• A study by the management firm McKinsey & Co. concurs that greater privatization,
removal of restrictions on foreign investment and reform of land ownership laws could
virtually double India’s GNP and raise the real incomes of farming families by over 40%.
• Poor people must be empowered to literally make their own business plans, as successful
micro-credit schemes have encouraged, and fiscal management must be decentralized.
• In addition to this government must focus on stimulating spirit of entrepreneurship.
Student Notes:
5. Sources
1. IGNOU module on Public Policy
2. Niti Aayog Action Agenda 2017-2020
3. Annual reports of Ministries
4. The Hindu and The Indian Express
5. Economic and Political Weekly
Student Notes:
Student Notes:
• Better service delivery to the citizens. For example convergence of Total Sanitation
Campaign (TSC) with National Rural Livelihood Mission can promote effective
maintenance of the built up toilets. Convergence of TSC with Piped water scheme
will avoid contamination of the drinking water bodies.
• Multiplicity of schemes confuses the citizens. A few but targeted schemes will
create better awareness among them for their rights and entitlements.
• Convergence of service delivery platforms enable the people to avail the benefits
easily.
Recently government has merged service delivery platform for Rashtriya Swasthya Bima
Yojana, Aam Aadmi Bima Yojana and the Indira Gandhi old age pension scheme.
Convergence of MNREGA with other schemes relating to agriculture, forests, water
resources, land resources, rural roads, anganwadi centers, drinking water and
sanitation can increase the productivity of such assets and resources under MGNREGA,
which will help rural families to enhance the quality of their life with better livelihood
methods. 12th Five Plan has also focuses on convergence of programmes.
3. The developmental model in India should include rural development schemes that are
“demand driven” rather than “programme driven”. Examine with respect to the
design of various social sector schemes.
Approach:
Firstly, bring out the context in which the question has been framed. Then compare and
contrast between “demand driven” and “programme driven” approach. Further, try to
incorporate examples and illustrate how the current governmental schemes are
focusing on a demand driven approach. You might also use Case Study approach to
bring forward your argument (Eg. NREGA and its success story or SAGY)
Answer:
The understanding of development till late in India has been limited to implementation
of the government programs in a top down model rather than meeting the demands of
the grassroots. The program driven approaches led to the implementation of policies
built by the experts in the ivory towers to a completely different environment where
life of many got impacted. The states had long been complaining that funds for the
social sector schemes were extremely restricted as per the programs prescribed by the
centre like JNNURM, RKVY, AIBP, RGGVY etc. and could not be used for the special
requirements of the local development. Diverse regions in India had diverse needs, for
which a single handed top-down approach was not found suitable.
In the changing paradigm of development, Demand-driven governance as an approach
to development places emphasis on the following characteristics which provide
following benefits:
• A decentralised component of resource allocation and distribution which gives
priority to the people rather than any centralizing authority;
Keeping this in mind the Saansad Aadarsh Gram Yojana (SAGY) was also formulated. Its
approach focused on engaging with and mobilizing the community for participatory
local level, converging different government programs, private and voluntary initiatives
and to achieve comprehensive development in tune with people’s aspirations.
Student Notes:
• Substantial participation and co-determination from local actors and civil society
organisations which mobilises beneficiary contribution and gives them a sense of
ownership; e.g. Social sector schemes like Deen Dayal Upadhyaya Gram Jyoti Yojna
are being implemented not only by the CPSU’s, state government power
department, state electricity board and DISCOMs alone but cooperatives share an
equal role in its implementation
• Alignment and coordination with local authorities and governance structures also
ensures social investment.
• a set of ‘checks and balances’ to ensure local transparency and allow community
constituencies to hold state- and developmental systems accountable (‘bottom-up
accountability’) ensures optimality in performance. E.g. Social audit by Gram
Sabhas was the major reason behind the successful implementation of MGNREGA.
• The concept of demand-driven services is also linked to a paradigm shift in public
sector reform towards responsive governance
Although demand-driven programmes represent progress over top-down approaches,
but in light of available experience, certain design traps should be avoided, i.e.
• Demand-driven approaches can fragment and scatter activities. It is clear that
geographical planning and convergence among the programmes should not be
overlooked during the preparatory phase.
• There is an obvious need for both top-down and bottom-up infrastructure planning
to allow for combining heavy and light investments within the framework of local
development plans at various levels.
• Need for Capacity building at local level before such programmes.
In a nutshell, the approach of bringing local level development has made a shift
towards accommodating genuine community needs, community contributions and self-
help with regard to the various socio-cultural needs of the people. Thereby, Rural
development schemes should not only satisfy the demands of local people and
empower local self governance institutions but should have capacity building initiatives
ingrained and in tune with national objectives leading to a convergence, which would
help in achieving overall development of our nation.
4. Rights-based approach to social policy, which has rippled through India over the past
decade and a half, reorients governance from ideas of patronage towards duty of the
state and justified claims of citizens. Discuss with examples. Also, explain how the
rights-based approach helps in improving public service delivery.
Approach:
• Discuss what rights based approach to social policy is through examples.
• Explain how it has reoriented governance by putting legitimate obligations on the
state and giving people the authority to see them fulfilled.
• Conclude by highlighting its advantages in public service delivery.
Answer:
A rights based approach is empowering people to know and claim their rights. It is also
about increasing the ability and accountability of individuals and institutions that are
responsible for protecting and fulfilling those rights. A rights-based approach to social
policy implies institutions and policies that can guarantee people reasonable access to a
‘social minimum’ i.e. to fulfill basic needs like food, shelter, work, etc. As the socio-
economic condition improves, the ‘minimum’ also changes.
Student Notes:
In recent past, ‘Rights’ have been identified with good governance, and political and
bureaucratic efforts to improve administration are often defined in terms of expanding
rights of the citizens on the government. Further, pressure groups like Civil Society,
donor agencies (UN bodies) and others, as well as Supreme Court’s wider interpretation
of Fundamental Rights have ensured a more inclusive approach to public policy making
especially with regard to rights of the vulnerable.
With increasing knowledge, awareness, social capital and support of domestic and
international civil society, certain rights have come to be regarded as basic obligations
on the state rather than luxuries that could be delayed in the name of capability of the
state. The ‘basic minimum’ Rights are no more a state patronage, rather they are its
duties. The following measures undertaken can be considered as various aspects of
rights based approach:-
• Constitutional status to PRIs (grassroots, participative democracy)
• Adoption of Right to Information (extracting transparency and accountability), Right
to Education (to build human capital), Right to Food (through National Food
Security Act), Formulating a National Health Mission, etc.
• Adoption of Right to Public Service Acts by many States to give timely delivery of
services to people.
• Social Audit of government programmes
Importance of Rights-based approach in improving public service delivery
• Clear identification of rights, their holders and enforcers improves accountability.
• Vulnerable can be targeted and offenders can be prosecuted with better
understanding and awareness about rights.
• Helps in building capacities, capabilities and infrastructure for the realization and
enforcement of rights. It recognises the power inequality between citizens and
administration and gives the former the tools to deal with it.
• Facilitates in active and meaningful participation of multiple stakeholders. It creates
a sense of ownership of development processes.
In sum, a rights-based approach to development explicitly focuses on the attainment of
minimum conditions for living with dignity. In this way, the approach lays the
groundwork for state accountability and action as well as citizen participation and
transparency.
5. MGNREGA has been termed as a stellar example for rural development. In this
context, discuss how far the design of MGNREGA program makes it more successful
than other rural development programmes.2017-9-854
Approach:
• As Introduction briefly mention the factors that make MGNREGA a Stellar example
for rural development.
• Clearly delineate the design of MGNREGA.
• Provide successful examples of the functioning of the MGNREGA to substantiate.
Answer:
MGNREGS has served as a source of employment for the poor in distress situations
such as drought, crop failures and lean rural employment days.
• It has helped raise rural wages steadily over time, and in places where it has been
implemented well, built rural assets such as irrigation canals and roads have
augmented local infrastructure.
Student Notes:
VISION IAS
Student Notes:
Student Notes:
7.2.1. Trusts......................................................................................................................24
Student Notes:
1. Development Processes
1.1. What is Development and Development Process?
A multitude of meanings have been attached to the term development. It is mostly confounded
with economic growth. Also, larger meanings such as social development, sustainable
development and human development are attributed to it.
In simple terms, Development is ‘bringing about social change that allows people to achieve
their human potential’.
Amartya Sen has given the concept of development a
Dimensions of Development new dimension. He views development as a political
• Development as a political process: process. According to Sen, Development consists of
the removal of various types of unfreedoms that
It is regarded as the something that
leave people with little choice and little opportunity
is done by some agency (state or
of exercising their reasoned agency.
development organization) for
others. It is called political process as it raises questions about who has the power to do
what to whom.
• Human Development: Sen has been flag bearer of this approach. He considers economic
growth as measure of development a deeply flawed and inadequate approach. He
redefined development in terms that include human rights as a constitutive part and all
worthwhile processes of social change are simultaneously rights-based and economically
grounded. His capability approach focuses on the well being of those at bottom of the
society, not on the efficiency of those at the top.
• Sustainable Development: “Our Common Future”, also called Brundtland Report defines
Sustainable development as development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. To achieve it, UN
has established Sustainable Development Goals (SDGs) – a wide ranging targets – to be
achieved by 2030. The goals and targets are universal, meaning they apply to all countries
around the world, not just poor countries. Reaching the goals requires action on all fronts –
governments, businesses, civil society and people everywhere all have a role to play.
Student Notes:
Student Notes:
2. Civil Societies
2.1. What are Civil Societies?
According to the World Bank, Civil Society refers to refers to a wide array of organizations,
community groups, non-governmental organizations [NGOs], labour unions, indigenous groups,
charitable organizations, faith-based organizations, professional associations and foundations.
• Globally, the term ‘Civil Society’ became popular in 1980s, when it started to be identified
with non-state movements defying authoritarian regime, especially in Eastern Europe and
Latin America.
• When mobilized, civil society - sometimes called the “third sector” (after government and
commerce) - has the power to influence the actions of elected policy-makers and
businesses.
• Examples of well-known civil society organizations include Amnesty International, the
International Trade Union Confederation, World Wide Fund for Nature (WWF), Greenpeace
and the Danish Refugee Council (DRC).
Following representation illustrate various factors that are important for survival and
sustainability of civil society.
Student Notes:
Student Notes:
Student Notes:
Student Notes:
• Research NGOs: They carry out intensive and in-depth analysis of topic/issue and lobby
with the government, industry or other agencies to influence public policy. Ex: Centre for
Science and Environment which engages in environment related works.
However, this classification is not strict and rigid. These NGOs keep taking multiple works that
can be categorized in one category or other.
NGOs can also be classified on the basis of:
• Whom the NGO is designed to benefit? i.e. the beneficiary.
• What the NGO does? i.e. the activity.
Following is schematic representation of how a single NGO can have multiple activities and
beneficiaries.
Student Notes:
players and partners in development activities in the region. At the community level, they
are in the front line in providing assistance in the acquisition of basic needs and amenities;
in identifying issues, raising awareness, and in articulating the communities’ problems.
• Rehabilitation: NGOs did remarkable job post 2004 Tsunami. Besides helping in rescue
operations, NGOs also set up vocational training centers.
• Implementation of welfare schemes: NGOs due to proximity to general public, work as
interface between government and the end users. Thus NGOs play three roles of
implementer, a catalyst and a partner in the implementation of government welfare
schemes.
3.4. Role of NGOs in Protection of Environment
The rapid growing and economic development is leading to number of environmental issues in
India. In order to deal with the increasing damage to environment many Non-Governmental
organizations have been set up.
• They play a crucial role in helping to plug gaps by conducting research to facilitate policy
development, building institutional capacity, and facilitating independent dialogue with civil
society to help people live more sustainable lifestyles.
• The issues like future of environmental protection, sustainable development and zero
population growth are some of the major concerns of the environmental NGOs.
• Major campaigns by NGOs:
o Climate Change
o Protection of Pristine forests
o Protection of marine life and diversity
o Against whaling
o Against Genetic Engineering/ GMOs
o Prevention of Nuclear Threat to wildlife
o Elimination of chemical and biological toxic waste
o Encouragement of sustainable trade
• NGOs carry out mass awareness campaigns, tree planting drives, promoting ecologically
sustainable practices for waste removal like vermin-culture and composting instead of
dumping in landfills, supporting the use of cycles and green renewable fuels instead of
fossil fuels.
• Many NGOs specialize in data-driven support to government bodies, showing quantifiable
proof that encroachment upon biodiversity and water bodies is dangerous. Their reports
become the basis of media attention, educating the masses and eventually molding
opinion.
• Globally, NGOs have the power to bring about global treaties, including reforms to address
regulation of hazardous wastes, bans on landmines, and control of greenhouse gases and
emissions. The Centre for Science and Environment for example, has been a leading light
on, pollution, toxins in food and beverage and other key areas.
• Some major environmental NGOs in India are:
o Greenpeace
o WWF
o Bombay Natural History Society (BNHS)
o Development Alternatives Group
o The Energy Research Institute
o Birdlife International
o The Centre for Science and Environment
• Bombay Natural History Society: It conducts field research projects on bird migration. It
also studies certain endangered species of wildlife and their habitat and through
Student Notes:
environmental education imparts the knowledge and awareness of the need to conserve
wildlife.
• The Energy Research Institute: Its mission is to develop and promote technologies, policies,
and institutions for efficient and sustainable use of natural resources. It deals with policy-
related works in the energy sector, research on environmental subjects, development of
renewable energy technologies and promotion of energy efficiency in the industry and
transport sector.
3.5. Challenges faced by NGOs in India
• Lacks of funds – Most of the NGOs in India are suffering from paucity of funds. Government
does not give cent percent grants in aid or make delay in sanctions of grants for numerous
programmes. NGOs have to make matching contributions which they are sometimes unable
to manage and are, therefore, unable to avail themselves of the grants
• Inadequate Trained Personnel – It is expected that the personnel working in NGOs shall
have a sense of dedication and commitment and interest in the social services. Lack of
professionally trained personnel is one of the major challenges faced by NGOs in India.
• Misuse of Funds – It is a common experience that there have been serious charges of
misuse and misappropriation of funds received as grant-in-aid form the government,
foreign donors and raised through their own resources by the most of the NGOs. These
NGOs may reflect its image to other NGOs who are working with dedication and
commitment.
• Inequality in rural areas – NGOs are more developed in urban areas as compared to rural
areas. The backwardness and ignorance of the rural people and lack of enthusiasm among
social workers to among them in the absence of availability of minimum comforts are the
two important reasons for the backwardness of the NGOs in rural areas.
• Lack of Volunteerism/Social work among Youth – The basic characteristic of NGO is
volunteerism. The extent of volunteerism is declining day by day and turning it into
professionalization. Even the young graduates from social work are interested in making
their career in professionalism. This leads to lack of efficient volunteers in NGOs.
3.6. State v/s NGOs
India has witnessed boom in NGO sector. According to a conservative estimate by the CBI, there
is 1 NGO for every 600 citizens in India. But there is accountability deficit with NGOs in India.
Responding to a PIL filed in Supreme Court, CBI said that many don’t submit details of receipt of
grant and spending to tax officials.
In a Supreme Court enquiry, major states like Andhra Pradesh, Bihar, Delhi, Haryana, Karnataka,
Rajasthan, West Bengal, Odisha, Tamil Nadu, Chhattisgarh and Himachal Pradesh could not
provide details regarding NGOS working in their territory. This largely explains the regulatory
mechanism of the NGOs in India. Supreme Court in 2017 ordered government to audit 30 lakh
NGOs and voluntary organizations that receive public funds but fail to explain their spending.
A PIL has shown that NGOs do not have a transparent mechanism in place to monitor funding.
A Central Bureau of Investigation (CBI) report that compiled state-wise data of 32 lakh NGOs
revealed that only 10 percent of NGOs filed annual income and expenditure statements.
Intelligence Bureau, in a report accused "foreign-funded" NGOs of "serving as tools for foreign
policy interests of western governments" by sponsoring agitations against nuclear and coal-
fired power plants and anti-GMO agitation across the country. The NGOs, are said to be working
through a network of local organizations to negatively impact GDP growth by 2–3%.
It also alleged that Greenpeace was leading a massive effort to take down India's coal-fired
power plant and coal mining activity by using foreign funds to "create protest movements
Student Notes:
under 'Coal Network' umbrella at prominent coal block and coal-fired power plant locations in
India.
In April 2015, the Government of India shared a list of over 42,000 NGOs with Financial
Intelligence Unit (FIU) to check suspicious foreign funding amid the crackdown on some top
international donors for flouting the Foreign Contribution Regulation Act (FCRA), 2011.
For the first time, the government clearly defined the sectors in which it has listed Christian
missionaries, Hindu, Sikh and Muslim religious groups receiving foreign contribution besides
other activities of NGOs in which funds are claimed to be utilized. There is also suspicion that
money launderers could use the legitimate route to wire illicit money.
3.7. Suggestions to Improve the Working of NGOs
• The rules and regulations of grants-in-aid should be liberalized by the government and
sanction more grants to NGOs.
• At the same time, the government should appoint commissions of enquiry or committees
to cross check the misuse of funds by NGOs. The member of committee has to supervise
and monitor the activities of NGOs periodically.
• Young graduates from universities, colleges and schools should conduct the public
seminars, meetings etc., and use the local media to advertise the importance of
volunteerism, success stories of NGOs and encourage people to participate in voluntarism.
• Universities, colleges and schools should collaborate with NGOs and conduct a campus
interviews for the young graduates who are interested in voluntarism. NSS and NCC should
encourage students to participate in voluntarism from childhood days onwards.
• In India, 65% of populations belong to rural areas. NGOs, therefore, need to operate in rural
areas on a bigger scale to enlist the cooperation of village people in making their lives
better. At the same time, these NGOs should encourage the educated young graduates of
rural areas to participate in voluntarism. The government should also give some special
provisions for NGOs who are working in rural areas in getting eligibility conditions for
grants.
• NGOs being a welfare organization should maintain high standard of quality in service. The
government also should recognize those NGOs, by giving awards or rewards with additional
grants. This would motivate the other NGOs to work efficiently
• The government should revise the pay-scales and allowances to the personnel of NGOs. At
the same time some special funds to be allotted for the NGOs to train the personnel at the
grass root level.
• The NGOs should use of latest technologies like internet, websites etc., for raising of their
funds, to have mutual associations, to advertise their products and for the selection of
efficient personals.
Student Notes:
Student Notes:
Student Notes:
Student Notes:
Student Notes:
India (RBI) and the Indian Bank Associations (IBA) to provide bank credit to SHGs. The
financial year 2017-18 has seen more than 82 lakh households mobilized into 6.96 lakh Self
Help Group (SHGs) across the country. Cumulatively, more than 4.75 crore women have
been mobilized into more than 40 lakh SHGs. The mission also provides Interest Subvention
to women SHGs availing bank loans amounting to Rs.3.00 lakhs, to subsidize the cost of
borrowing. The interest subvention effectively reduces the cost of borrowing to 7% per
annum.
• Mahila Kisan Shashaktikaran Pariyojana: In order to promote agro-ecological practices that
increase women farmers’ income and reduce their input costs and risks, the DAY-NRLM
Mission has been implementing the Mahila Kisan Shashaktikaran Pariyojana (MKSP). As of
March 2018, more than 33 lakh women farmers were being supported under this scheme.
4.8. Suggestions to Improve the Working of SHGs
• The An integrated approach is required for meeting overall credit needs of a poor family in
terms of backward linkages with technology and forward linkages with processing and
marketing organizations.
• Credit needs to be provided for diversified activities including income generating livelihood
activities productions, housing consumption loan and against sudden calamities.
• The delivery system has to be proactive and should respond to the financial needs of the
farmers.
• Training programmes relating to management of finances, maintaining accounts,
production and marketing activities etc. should be given.
• Simplify the process of giving loans, i.e. reduce the number of questions to important non
repetitive ones.
• Provide gender sensitization training to bank staff so that they are sensitized to the needs
of rural clients especially women.
• Adequate insurance coverage should be provided to the business units promoted by SHG
against the financial losses to safeguard the interest of the entrepreneurs.
Student Notes:
Student Notes:
• India now sees – and projects – itself as a global power and a partner to developed nations
like Britain, rejecting the traditional model of rich nations aiding poor ones.
5.3. Foreign Funding and NGOs
Being non-profit organizations, NGOs entirely depend upon contribution – foreign or domestic
– for their functioning. In recent times, many NGOs have come under the government scanner.
The Foreign Contribution (Regulation) Act, 2010 (FCRA) and Foreign Contribution (Regulation)
Rules, 2011 (FCRR) framed thereunder regulate the receipt and usage of foreign contribution by
non-governmental organizations (NGOs) in India.
Foreign Contribution Regulation Act, 2010
This act replaced the Foreign Contribution (Regulation) Act, 1976 (FCRA). The act seeks to
regulate the acceptance and utilization of all foreign funds through donations, gifts or grants.
• The 1976 Act lists a number of organisations and individuals that are prohibited from
accepting foreign contribution. The Bill adds organisations of a “political nature” and
electronic media organisations to the list.
• The act requires all persons to register under FCRA to accept foreign contribution. The
central government may deny, suspend or cancel certification under certain conditions.
• Organisations must renew FCRA certification every five years.
• It prohibits acceptance and use of foreign contribution or foreign hospitality by a certain
specified category of persons such as a candidate for election, judge, journalist, columnist,
newspaper publication, cartoonist, et al.
• The act prevents use of foreign contribution or foreign hospitality for any activity
detrimental to the national interest.
• The foreign contribution shall be utilized for the purpose for which it has been received and
such contribution can be used for administrative expenses up to 50% of such contribution
received in a financial year.
• Every bank shall report to such authority, as may be prescribed, the amount of foreign
remittance received, sources and manner and other particulars.
• Every NGO registered or having prior approval under the Act must file an annual report with
the Authority in the prescribed form. This report must be accompanied by an income and
expenditure statement, receipt and payment account, and balance sheet for the relevant
financial year. For financial years where no foreign contribution is received, a 'NIL' report
must be furnished with the Authority.
• New provisions have been made for suspension as well as cancellation of registration
granted for violation of the provisions of the Act.
The act has a very wide scope and is applicable to a natural person, body corporate, all other
types of Indian entities (whether incorporated or not) as well as NRIs and overseas branches/
subsidiaries of Indian companies and other entities formed or registered in India. It is
implemented by the Ministry of Home Affairs, Government of India.
Recent issues with the FCRA act and impact on the NGOs
• On July 24, 2018, the Union Minister of State for Home Affairs in a reply to Lok Sabha said
that, FCRA registration of nearly 19,000 NGOs have been cancelled from 2011 till now and
they have been barred from receiving foreign funds. He also told the House that as on date,
2,547 NGOs have not adhered to the government orders to submit their pending annual
returns -- income and expenditure, receipts of funds from abroad and balance sheets.
• Of all the total funds that are coming, 13% is for contentious issues like religious institutions
and awareness campaign. Government is terming both as anti-national activity as religious
Student Notes:
institutions are fueling terrorist activities and awareness campaign are targeting
developmental projects of Government
• Experts have signaled towards a paradox where India promotes FDI but throttles
contribution to NGOs. In the past, similar bans were put by communist countries like Russia
and Hungary.
• An IB report blamed NGOs for slump in India’s GDP. It is also accused that some Christian
NGOs are engaged in proselytization. US based NGO Compassion International was put on
‘priority list’ by the government.
• In June 2018, the government relaxed penalties on NGOs violating FCRA norms. From now
on, instead of suspension or cancellation of licenses, hefty fines will be levied on NGOs.
These fines will not be applicable retrospectively.
Student Notes:
6. Microfinance Institutions
6.1. What are Microfinance Institutions?
Microfinance, also called microcredit, is a type of banking
service that is provided to unemployed or low-income
individuals or groups who otherwise would have no other
access to financial services.
• Microfinance institutions (MFIs) are financial
institutions working towards the upliftment of the
needy and underprivileged section of the society by
providing short-term loans to set up their own
venture. They take a minimum or very calculated risk
and fund the interested borrowers to help them get
trained, setup and run a small-scale business.
• MFIs operate in a number of forms and shapes in
India:
o Joint Liability Groups
o Self Help Groups
o The Grameen Bank Model
o Rural Cooperatives.
• The The lending system of the MFIs is completely
different from that of the traditional banking sector.
In Microfinancing sector, an official gets appointed by
the concerned financial institution who can get in
touch with the group to discuss the loan application
and disbursal procedure.
• He/she understands the skills and requirements of the applicant first and then on the basis
of that he/she finalizes the amount.
• The appointed officer not only understands the business that the borrower is currently
conducting or interested to start in future, but he or she also analyses the risk factor
associated with it.
6.2. Role of Microfinance Institutions in Development
• Women Empowerment:
Microfinance institutions
are playing a major role
in empowering the
women force in India. By
offering financial
services to the poor
unprivileged women of
the country, the
institutions have opened
a door for their
economic growth.
Uneducated, poor and
unemployed women
usually don't get access to loans from typical lending organizations and this is where the
MFIs have come to their help.
Student Notes:
• Rural Development: More than subsidies, poor need access to credit. Absence of formal
employment make them non 'bankable'. This forces them to borrow from local
moneylenders at exorbitant interest rates. MFIs enhance credit to poor even in the
absence of formal mortgage.
• Financing the unfinanced: The microfinance sector consistently focuses on understanding
the needs of the poor and on devising better ways of delivering services in line with their
requirements, developing the most efficient and effective mechanisms to deliver finance to
the poor.
• The World Bank estimates that more than 500 million people have directly or indirectly
benefited from microfinance-related operations.
• The benefits of microfinance extend beyond the direct effects of giving people a source for
capital. Entrepreneurs who create successful businesses, in turn create jobs, trade, and
overall economic improvement within a community.
• Empowering women in particular may lead to more stability and prosperity for families and
subsequently in the society.
6.3. Issues Related to Microfinance Institutions
• Higher rates of Interest: MFIs’ charge a very high rate of interest (12-30%) as compared to
commercial banks (8-12%). Recently, the RBI (India’s regulatory bank) announced the
removal of upper limit of 26% interest on MFI loans. This has worsened the situation for
customers and led to farmer’s suicide in states like Andhra and Maharashtra.
• Over-dependence on banking sector: Around 80% of their funds come from banks. Most
of these are private banks charge a high rate of interest and also the term of loans is of
shorter period. It makes them incompetent and less reactive to cases of default and
delinquencies.
• Lack of awareness of financial services: Financial literacy is very low in India. About 76% of
the population do not understand basic financial concepts. MFIs struggle to make their
business more financially viable due to this lack of awareness
• Regulatory Issues: RBI is the regulator for MFIs. But needs and the anatomy of micro
finance industry is supremely different from that of banks. Regulatory issues have led to
sub-optimal performance and failure in the development of new financial products and
services
• Appropriate Model: Most of the MFIs follow SHG or JLB model. Most of the time selection
of model is not scientific in nature. It affects the sustainability of the organisation in the
long-run and also increases the risk of borrowings for the poorer section beyond they can
bear.
6.4. Suggestions to Improve the Working of Microfinance Institutions
• There is need for field supervision of MFIs to check ground realities and the operational
efficiency of such institutions.
• Also incentives should be offered to MFIs for opening branches in unbanked villages, so as
to increase rural penetration.
• Also MFIs be encouraged to offer complete range of products to their clients. Transparent
pricing and technology implementation to maintain uniformity and efficiency are among
the others which these institutions should adopt.
• Inability of MFIs in getting sufficient funds is a major hindrance in the microfinance growth
and so these institutions should look for alternative sources of funds.
• Some of the alternative fund sources include outside equity investment, portfolio buyouts
and securitization of loans which only a few large MFIs are currently availing.
Student Notes:
• Information and technology can induce massive impact on the state of credit market
accessibility which remains the most significant issue when it comes to availability of formal
loans at market price.
• Indian microfinance industry came a long way from 1975 with the development of RRB
(Regional and Rural Banks). Smooth functioning of Indian microfinance industry can be
enabled through setting up of a separate regulatory authority to discourage malpractice
and political influence.
• Strengthening the credit check and debt collection processes and educating the villagers
about products and consequences is important.
Student Notes:
Student Notes:
• Unlike Public Trusts, they may not necessarily originate from formal registration, nor do
they specifically emphasise on a triangular relationship among the donor, Trustee and the
beneficiary.
• Religious endowments arise from dedication of property for religious purposes. The
corresponding action among the Muslim community leads to the creation of Waqfs. Waqfs
tie up the property and devote the usufruct to people.
• The Indian Constitution recognizes freedom to manage religious affairs as one of the
fundamental rights of its citizen. According to Article 26 - “Subject to public order, morality
and health, every religious denomination or any section thereof shall have the right:
o to establish and maintain institutions for religious and charitable purposes;
o to manage its own affairs in matters of religion;
o to own and acquire movable and immovable property; and
o to administer such property in accordance with law.
• Though, the above provision gives freedom to create Trusts / charitable institutions for
religious purposes, it puts some rider on administration of such property “in accordance
with law” – Article 26(d).
7.2.3. Waqfs in India
• Under Muslim rule in India, the concept of Waqf was more widely comprehended as
aligned with the spirit of charity endorsed by the Quran. Waqf implies the endowment of
property, moveable or immovable, tangible or intangible to God by a Muslim, under the
premise that the transfer will benefit the needy. As it implies a surrender of properties to
God, a Waqf deed is irrevocable and perpetual
• Currently, 300000 Waqfs in India are being administered under various provisions of the
Waqf Act, 1995. This Act is applicable throughout the country except for Jammu and
Kashmir and Dargah Khwaja Saheb, Ajmer.
• The management structure under the Act consists of a Waqf Board as an apex body in each
State. Every Waqf Board is a quasi-judicial body empowered to rule over Waqf-related
disputes. At the national level, there is Central Waqf Council which acts in an advisory
capacity.
• The Waqf Act was amended in 2013. The amended Waqf Act, has made provisions for
strengthening the Waqf Institution and streamline their functioning. Some of the important
provisions incorporated in the Act are-
o The definition of Waqf has been modified to allow non-Muslims also to create Waqf
o If the tenancy, lease or license has expired or been terminated, this would be
considered as encroachment
o The Central Waqf Council has been empowered to issue directive to the State Waqf
Boards on their financial performance, survey, maintenance of Waqf deeds, revenue
records, and encroachment of Waqf properties seeking annual report and audit report
o Any dispute arising out of a directive issued by the Central Waqf Council to be referred
to a Board of Adjudication to be constituted by the Central Government, to be presided
over by a retired judge of the Supreme Court or a retired Chief Justice of a High Court
o The Establishment of State Waqf Boards within 6 months from the date of
commencement of this Act
o ‘Sale’, ‘Gift’, ‘Mortgage’, ‘Exchange’ and ‘Transfer’ of Waqf properties have been
prohibited to curb alienation of Waqf properties
o ‘Lease’ of Waqf properties is being allowed. However, ‘Lease’ of Mosque, Dargah,
Khanquah, Graveyard and Imambara has been prohibited
o The lease period has been enhanced uniformly upto 30 years for commercial activities,
education or health purposes with the approval by the State Govt. because of the long
gestation periods of such projects and the long periods of return on capital employed.
Student Notes:
The maximum period of lease of agricultural land is fixed for 3 years. Further, lease
beyond 3 years is to be intimated to the State Government and it would become
effective only after 45 days.
7.3. Trade Unions
• In terms of Section 2 of the Trade Unions Act, 1926, a “Trade Union means a combination,
whether temporary or permanent, formed primarily for the purpose of regulating relations
between workmen and employers or between workmen and workmen or between
employers and employers, or for imposing restrictive conditions on the conduct of any
trade or business, and includes any federation of two or more Trade Unions.”
• The objective of the Trade Unions Act is to provide a legal existence and protection to the
Trade Unions as defined above.
• Importantly, it is also provided that no member of the Council of Ministers or a person
holding an office of profit (not being an engagement or employment in an establishment or
industry with which the Trade Union is connected), in the Union or a State, shall be a
member of the executive or other office bearer of a registered Trade Union.
Student Notes:
Student Notes:
• Even wider intra-regional disparity among the constituent States in SHG spread. In
the Southern Region, SHGs per lakh population varied between 891 in Andhra
Pradesh and 435 in Kerala. In the North-Eastern region, Assam accounted for 3.1
per cent of the total SHGs while the rest of the six States in the region had a
negligible share in the total SHGs.
• There does not appear to be a one-to-one correspondence between banking
outreach and spread of SHG movement. Even with similar banking network, SHG
spread varies between Regions and States indicating that other local factors are
equally important.
• The studies point to the coverage of the upper strata of the poor and not so much
to the ultra-poor. Except the government-sponsored programmes that are
mandated to focus on poor, the other efforts do not prioritise the poorest.
Suggestions for long term sustainability of SHG-Bank linkage program:-
• Encouraging SHGs in Excluded Regions
• Capacity building of Government functionaries
• Check on corruption/commission while sanctioning and upgrading the loan
• Maintenance of participatory character of SHG movement
• Identification of poor by the NABARD
• Incentive package for NGOs
• Avoid ‘ever-greening’ of loans
• Transparency in maintenance of records
• SHGs to evolve norms for distribution of surplus
• Identification of income/employment generating activities
• ICT technology and product innovation
Student Notes:
unaddressed.
• Self Help Group has unlimited roles like micro-credit, income generation,
community development, special uplifting etc. Role of co-operative societies is
restricted to economic activity especially marketing.
• Self Help Group has autonomous decision-making while autonomy is restricted in
co-operative societies.
3. Critically analyse the change in the nature of civil society in India due to the entry of a
large number of professional and well-funded NGOs in it. Also discuss the dilemmas
and the limits that this development has created for the civil society.
Approach:
• Explain the concept of civil society.
• Trace the background of civil society in India, preferably from the pre-independence
period. Then explain how the nature of civil society has changed over the years due
to entry of NGOs.
• Thereafter, discuss whether this has created new dilemmas. This can be done only
when the nature of civil society has been clearly explained. Also discuss the
limitations of the NGO sector, in light of the role that the civil society is expected to
perform.
Answer:
(The answer exceeds the word limit to explain the issues clearly and holistically.)
Civil society organizations in India emerged out of the twin processes of resistance to
colonialism and the development of a self-reflective attitude to traditional practices
that were increasingly found unacceptable in the light of modern systems of education
and liberal ideologies.
In the pre-independence period, at least seven categories of associations constituted
the space of civil society, viz. social and religious reform movements, Gandhian
organizations, a number of self-help organizations that grew up around trade unions,
movements against social oppression particularly the anti-caste movement,
associations to petition the colonial government to extend English education and
employment opportunities to the educated middle classes formed by professional
English speaking Indians, affiliated groups of the Congress party, social and cultural
organizations committed to the project of establishing a Hindu nation.
In the post-independence era, a number of civil society organizations took root both to
confront violations of democratic rights and to fill the void caused by the development
deficit of the state. For instance, from the late 1970s, the struggle for gender justice,
the anti-caste movement, the movement for protection of civil liberties (the People’s
Union for Civil Liberties; PUCL and the People’s Union for Democratic Rights; PUDR), the
movement for a sound environment (the Chipko movement), the struggle against
mega-development projects that have displaced thousands of poor tribals and hill
dwellers (the Narmada Bachao Andolan),the campaigns for the right to food, to work,
to information, for shelter, for primary education and for health, mobilized in civil
society.
However, since 1990’s professional and well-funded NGOs that claimed to speak on
behalf of different constituencies appeared on the scene. Though it is not that NGOs
are not civil society organizations, but they are different from social associations, or
movements, or citizens’ groups, or professional associations for they may not be
Student Notes:
Student Notes:
and helplessness, in, say, skewed income patterns. They just do not dream the large
and expansive dreams that were dreamt of by earlier generations of social activists–
restructuring existing structures of power and forging new and equitable structures of
social relations.
Student Notes:
the essential provisions of the bill and its impact on the environment and lives of
affected people. The public must then be given at least 30 days to comment. Following
publication, these comments are to be submitted to the relevant parliamentary
standing committee examining the bill.
5. While difference in opinions exist between the State agencies and the Voluntary
Organizations, the State recognizes the need to preserve, protect and nurture an
enabling environment for the development of the Voluntary sector. Explain in context
of the National Policy on the Voluntary sector.
Approach:
• A brief introduction about the importance of the role played by the VOs.
• Explain the statement in question about the difference in opinions/methods
between the VOs and State agencies on various issues.
• Thereafter, mention the role of promotion of VOs by the government and how this
can be seen in the light of National Policy in this area
• Highlight the pro-active role of the Govt. towards the Voluntary Sector. These
include:
o Partnership in Development
o Establishing an Enabling Environment for the Voluntary Sector
o Encouraging Self-regulation to ensure transparent and accountable systems of
governance and management of VOs.
• Conclude the answer on a positive note.
• You may give in certain examples – such as the Anti-Kundakulam protest by PMANE
etc.
• Caution: Avoid bluntly putting down the objectives of the National Policy on
Voluntary Sector.
Answer:
• The country faces a number of complex problems that require adaptive, multi-
sectoral solutions where sustained social mobilization is particularly important.
• Though there exist difference of opinions and working amongst the two entities,
such areas urgently require strategic collaboration between the Government and
VOs. The voluntary sector serves an effective non-political link between the people
and the Government. Both of them differ in their opinions on a number of issues
ranging from environment, resource utilization, displacement of people etc.
• National Policy on the Voluntary Sector-2007 recognizes three instruments of
partnership, viz., (i) consultation, through a formal process of interaction at the
Centre, State and District level; (ii) strategic collaboration to tackle complex
interventions where sustained social mobilization is critical over the long term; and
(iii) project funding through standard schemes.
Partnership in Development
• VOs offer alternative perspectives; committed expertise; an understanding of the
local opportunities and constraints; and the capacity to conduct a meaningful
dialogue with communities, particularly those that are disadvantaged. The
government therefore considers it essential that the Government and the Voluntary
Sector work together.
• It must be based on the basic principles of mutual trust and respect, with shared
responsibility and authority.
Student Notes:
Student Notes:
6. Unhealthy competition between Self Help Groups (SHGs) and Panchayati Raj
Institutions (PRIs) reduces the effectiveness of both. Discuss. How can creating a
synergy between the two help in addressing development challenges at the sub-
district level?
Approach:
• Briefly define the role and responsibilities of PRIs and how SHGs compete with
these responsibilities.
• Discuss how such an overlap may be unhealthy for the effectiveness of both
institutions.
• Finally discuss how coordination and clear demarcation can bring complementarity
amongst the two. Give examples of successful PRI-SHG linkage.
Answer:
Self-help groups are micro-finance intermediaries. They are generally facilitated by
NGOs, and they advise and train members in a variety of on- and off-farm income-
generating activities. Financial intermediation is generally a primary objective to realize
larger goals like empowering women, developing leadership abilities, increasing school
enrollments, improving nutrition, etc.
As can be seen, PRIs and SHGs have overlapping aims- from poverty alleviation to
enhancing participative democracy. The two institutions sometimes compete with each
other for space in development administration and political processes. SHGs are then
seen as undermining the constitutional roles of PRIs. Following points illustrate the
points of friction:
• SHGs are becoming a conduit for routing number of development schemes.
• Alignment of interests of MFIs, NGOs, corporations and donors with that of SHGs.
They have been increasingly involved with SHGs rather than PRIs in capacity
building.
• Political prejudice due to social compositions of PRIs and SHGs has weakened the
relationship.
• Some States have mandated inclusion of SHG members in various committees (like
Mid-day meal) of the PRI. However, no attempt has been made in this regard.
However, there are number of successful examples where SHGs and PRIs working in
tandem have effected a positive change in the rural society. The Indira Kranti Patham
Yojana by Society for Elimination of Rural Poverty (SERP) in Andhra Pradesh is very
active in improving the livelihoods of rural poor families. These SHGs work under the
Panchayat system for distribution of social security, pensions, wage labour under
NREGS, etc. Kudumbashree (Kerala), a women based participatory poverty eradication
programme, is an SHG movement into which there has been integration of various
Panchayat tiers.
The nature and mandate of both these institutions requires that they operate in
coordination to utilize resource efficiently and produce better outcomes. An
institutional and functional linkage with the SHGs will enhance responsiveness,
accountability and transparency in PRIs.
While at the Gram Panchayat level SHGs could be implementing, monitoring and
evaluating agencies, at the Block and District levels, they can act as a pressure group,
provide feedback and act as watchdogs. However, it is imperative that the capability
and capacity of the SHGs and the PRIs be strengthened for a symbiotic relation.
Student Notes:
7. Despite their location in the non-political domain of civil society, NGOs have ended up
playing a key, if indirect, role in India's politics. Comment.
Approach:
• Introduce by defining Non-Government Organisations (NGOs).
• Discuss the role played by NGOs in Indian society in short.
• Discuss the role (direct/ indirect) played by NGOs in Indian politics.
• Give appropriate examples, wherever necessary.
• Conclude on the basis of above points.
Answer:
NGO is defined as a non-profit private organization that pursue activities to relieve
suffering, promote the interests of the poor, protect the environment, provide basic
social services or undertake community development.
Task-oriented and driven by people with a common interest, NGOs perform a variety of
service and humanitarian functions, bring citizen concerns to governments, advocate
and monitor policies and encourage political participation through provision of
information.
Some NGOs also work for the empowerment of people by mobilizing them on some
public issues and thus graduating from a ‘welfare’ approach. Such NGOs are said to
influence politics, in the following ways:
Some NGOs have engaged in popular mobilization against proposed projects, like
Kundalkulam nuclear project, POSCO plant, Narmada Bachao Andolan etc.
Spearheading movements to provide justice for people affected by such projects has
made NGOs serve as a crucial reference point for political parties and other social
movements.
• Some NGOs are working directly in political sphere:
o Instead of representing people or problems of their constituency,
representative form of democracy has created caste and religion as political
constituency. In such a scenario, some NGOs fill this gap.
o Some NGOs are continuously working for electoral reform.
o Some NGOs are fighting legal battles for upholding the Constitution and law,
and safeguarding the rights of the people, like People’s Union for Civil Liberties.
o Many NGOs are providing public services to people at grassroots level, making
them enjoy the popular support.
• Many NGOs are actively advocating policy changes for the benefit of the common
good, like Greenpeace. Their advocacy affects policy decisions, and thereby they
are said to play a political role.
The blurring of the boundaries between NGOs and movement groups, and between
NGOs and the state, is just one of many factors that has allowed NGOs to enter
gradually and often indirectly, into the domain of electoral politics.
However, many NGOs have been found to be guilty of financial irregularities and
working against the national interest, which needs to be rectified. Democratic
decentralization has provided an opportunity for NGOs to enter into the political
domain. But in the end it’s the developmental agenda of the NGOs which is the
quintessential feature that aligns it with the politics.
Student Notes:
Student Notes:
• Senior management personnel have been brought under the definition of “public
servants” under the Lokpal and Lokayukta Act, 2013 and thus are required to
disclose their assets and liabilities, along with those of their spouse and children.
• More regulations might hamper the functioning of well-meaning NGOs.
• It may restrict their ability to explore alternative paradigms of development to
challenge social, economic and political forces.
Hence, while it is desirable and acceptable to regulate NGOs, the government should
take note as to not stifle their voices with over-regulation.
VISION IAS
Student Notes:
5. Social Audit............................................................................................................................... 13
Student Notes:
6. E-Governance ........................................................................................................................... 15
Student Notes:
1. Governance
1.1. What is Governance?
The United Nations Development Programme (UNDP), 1997, defined governance as “the
exercise of economic, political and administrative authority to manage a country’s affairs at all
levels. It comprises the mechanisms, processes and institutions, through which citizens and
groups articulate their interests, exercise their legal rights, meet their obligations and mediate
their differences.”
In 1993, the World Bank defined governance as the method through which power is exercised
in the management of a country’s political, economic and social resources for development.
In simple words, Governance is the process and institutions through which decisions are made
and authority in a country is exercised. Governance can be used in several contexts such as
corporate governance, international governance, national governance and local governance.
Thus governance focuses on the formal and informal actors and institutions involved in
decision-making and implementing those decisions.
1.2. Stakeholders of Governance
Government is one of the key actors in governance. Other actors may include political actors
and institutions, interest groups, civil society, media, non-governmental and transnational
organizations. The other actors involved in governance vary depending on the level of
government.
Typically, the stakeholders of
governance at national level
can be categorised into three
broad categories – State,
Market and Civil Society.
1. The State includes the
different organs of the
government (Legislature,
Judiciary and Executive)
and their instrumentalities, independent accountability mechanisms etc. It also consists of
different segments of actors (elected representatives, political executive, bureaucracy/civil
servants at different levels etc.)
2. The Market includes the private sector – organised as well as unorganised – that includes
business firms ranging from large corporate houses to small scale industries/
establishments.
3. The Civil Society is the most diverse and typically includes all groups not included in (a) or
(b). It includes Non-Governmental Organizations (NGOs), Voluntary Organizations (VOs),
media organisations/ associations, trade unions, religious groups, pressure groups etc.
Student Notes:
United Nations Development Programme (UNDP) recognizes eight core characteristics of good
governance:
1. Participatory
2. Consensus oriented
3. Transparent
4. Accountable
5. Responsive
6. Effective and Efficient
7. Equitable and Inclusive
8. Follows the Rule of Law
Understanding the key terms:
Participation: • Participation of all section of society is cornerstone of good governance.
• Participatory governance provides opportunities for citizens to take part
in decision making, implementation and monitoring of government
activities.
• However, participation needs to be informed and organized. This
includes freedom of association and expression as well as an organized
civil society.
Consensus • Good governance requires mediation of the different interests in society
oriented to reach a broad consensus on
o what is in the best interest of the whole community and
o how this can be achieved.
• It also requires a broad and long-term perspective on what is needed for
sustainable human development and how to achieve the goals of such
development.
Rule of Law • Good governance requires fair legal frameworks that are enforced
impartially.
• It also requires full protection of human rights, particularly those of
minorities and vulnerable sections of the society.
• An independent judiciary and an impartial and incorruptible police force
is sine qua non for impartial enforcement.
Transparent • Transparency means that decisions taken and their enforcement are
done in a manner that follows rules and regulations.
• It also means that information is freely available in easily understandable
forms and directly accessible to those who will be affected by such
decisions and their enforcement.
• It also means that enough information is provided and that it is provided
in easily understandable forms and media.
• For example, in India the Right to Information (RTI) Act has been a
powerful instrument in the hands of people to ensure transparency in
the decision making process of executive.
Accountable • Accountability is the acknowledgment and assumption of responsibility
for actions, products, decisions, and policies.
• The components of accountability are answerability, sanction, redress
and system improvement.
• In general an organization or an institution is accountable to those who
will be affected by its decisions or actions.
• Accountability cannot be enforced without transparency and the rule of
law.
Student Notes:
Responsive • Good governance requires that institutions and processes try to serve all
stakeholders within a reasonable timeframe.
• Redressal of citizen grievance, citizen orientation, citizen friendliness and
timely delivery of services are key component of responsive governance.
Effective and • Good governance means that processes and institutions produce results
Efficient into the optimum use of resources at their disposal.
• Thus it also covers the sustainable use of natural resources and the
protection of the environment.
Equitable and • A society’s wellbeing depends on ensuring that all its members feel they
Inclusive have a stake in it and do not feel excluded from the mainstream of
society.
• This requires all groups, particularly the most vulnerable, have
opportunities to improve or maintain their well-being.
Many sources include “Strategic Vision” as a 9th principle of Good Governance.
Strategic Vision: A broad and long-term perspective on good governance and human
development is required. There is also an understanding of the historical, cultural and social
complexities in which that perspective is grounded.
1.4. Strategies for good governance
• Reorienting priorities of the state through appropriate investment in human needs
• Provision of social safety nets for the poor and marginalized
• Strengthening state institutions
• Introducing appropriate reforms in the functioning of Parliament and increasing its
effectiveness
• Enhancing Civil Services capacity through appropriate reform measures that matches
performance and accountability
• Forging new alliances with civil society
• Evolving a new framework for government-business cooperation
1.5. The Worldwide Governance Indicators project – World Bank
As mention above, World Bank defines Governance as the process and institutions by which
authority in a country is exercised.
Specifically, governance is:
• the process by which governments are selected, held accountable, monitored, and
replaced;
• the capacity of governments to manage resources efficiently, and to formulate, implement,
and enforce sound policies and regulations; and
• the respect of citizens and the state for the institutions that govern economic and social
interactions among them
Student Notes:
‘The Worldwide Governance Indicators project’ – By World Bank ranks more than 200
countries on six key indicators of governance. The six indicators are:
1. Voice and Accountability
2. Political Stability and Absence of Violence
3. Government Effectiveness
4. Regulatory Quality
5. Rule of Law
6. Control of Corruption
These aggregate indicators combine the views of a large number of enterprise, citizen and
expert survey respondents in industrial and developing countries.
2. Governance in India
2.1. Dimensions of Governance in India
Department of Administrative reforms and Public grievances (DARPG) in its report “State of
Governance – A framework of assessment” has broken down governance into five dimensions
viz. political, legal& judicial, administrative, economic and social &environmental dimensions.
Student Notes:
1. Political Dimension
Political dimension being the most essential aspect of governance looks at the quality of
political contestation, conduct of individuals and institutions representing the people, use
and abuse of political authority, decentralization of powers and citizen’s faith in the political
system.
It has four key components:
• Exercise of franchise
• Profile and conduct of Political Representatives, Political Parties and the Political
Executive
• Functioning of Legislature
• Political Decentralisation
2. Legal & Judicial Dimension of Governance
This dimension seeks to measure whether the state’s exercise of power is within its
boundaries. Also its ability to effectively maintain law and order, safeguard human rights
and enable access to & delivery of justice.
It has four basic components:
• Law & Order and Internal Security
• Safeguard of basic rights
• Police Administration and Citizen‐friendliness of the Police
• Access to Justice and Judicial Accountability
3. Administrative Dimension of Governance
This dimension determines the ability of government to deliver basic services to citizens by
efficiently managing the human and financial resources. It also includes performance of the
State on vigilance and anti‐corruption matters as well as responsiveness and transparency
in administration.
It has following four components:
• Citizen Interface and Engagement
• Managing Human, Financial and other resources
• Basic Service Delivery
Student Notes:
Student Notes:
3. Citizen Charter
3.1. What is Citizen Charter?
A Citizen Charter is a document that outlines the commitment of a public body towards
standard, quality and timeframe of service delivery along with grievance redress mechanism. It
is an expression of understanding between the citizen and service provider about the nature of
services that the latter is obliged to provide.
3.2. Origin and the concept of Citizen Charter
The concept was first articulated and implemented in the United Kingdom by the Conservative
Government of John Major in 1991 as a national programme. The basic objective of the
Citizen’s Charter is to empower the citizen in relation to public service delivery.
Student Notes:
The six principles of the Citizen’s Charter movement as originally framed were:
1. Quality: Improving the quality of services;
2. Choice: Wherever possible;
3. Standards: Specifying what to expect and how to act if standards are not met;
4. Value : For the taxpayers’ money;
5. Accountability: Individuals and Organisations; and
6. Transparency: Rules/Procedures/Schemes/Grievances.
The programme was re-launched in 1998 by the Labour Government of Tony Blair which
rechristened it “Services First”. It includes the nine principles of Service Delivery (1998), which
are as follows:-
1. Set standards of service;
2. Be open and provide full information;
3. Consult and involve;
4. Encourage access and the promotion of choice;
5. Treat all fairly;
6. Put things right when they go wrong;
7. Use resources effectively;
8. Innovate and improve;
9. Work with other providers.
3.3. Significance of Citizen Charter
• It makes a public institution transparent and accountable.
• It can be an effective tool to engage the civil society and to curb corruption.
• It aims at enhancing standards of service delivery.
• It makes government more responsive.
• It enhances people participation in governance process and the credibility of the
government.
Student Notes:
4. Sevottam Model
4.1. What is Sevottam Model?
The Sevottam model has been developed with the
overarching objective of improving the quality of
public service delivery in the country. It is a
combination of two words Seva (service), Uttam
(excellence).
It provides a framework for organizations to asses
and improve the quality of service delivery to
citizens. The model was suggested by 2nd ARC in
its 12th report Citizen centric administration.
The model has three modules:
1. Citizen Charter
Student Notes:
Student Notes:
• The Bill also provided for the appointment of Central and State Public Grievance Redressal
Commissions.
• A penalty of up to Rs 50,000 to be levied upon the responsible officer or the Grievance
Redressal Officer for failure to render services.
Some states have brought legislation to guarantee the right to public services delivery, but a
Central law is required to provide an overarching framework across the country.
5. Social Audit
5.1. What is Social Audit?
Social audit is a process in which details of resources used by public agency for
development initiatives are shared with people often through public platforms, which
allows end users to scrutinize the impact of developmental programs.
Social audit serves as an instrument for the measurement of social accountability of an
organization. It gained significance after the 73rd amendment of the constitution relating
to Panchayat Raj institutions.
Difference with other audits
A conventional financial audit focuses on financial records and their scrutiny by an external
auditor following financial accountancy principles. Social audit covers a wide horizon of
stakeholders as its reports revolve around ethics, labor, environment, human rights, community,
society and statutory compliances.
5.2. Need of Social Audit
The investment of large amount of funds and resources by the Government of India and various
national and international agencies, since independence in social development programmes,
has not been justified by the impact it has made.
The major focus by the Government hitherto has been in the supply side of the Programme
Delivery System. While improvement of the SUPPLY SIDE is a long term process strengthening
the DEMAND SIDE, may be a short run process, which will improve the effectiveness of the total
delivery system much faster.
There is a need to strengthen the DEMAND SIDE on a priority basis through:
a) Creating a culture of Social Audits of Development Programmes, and
b) Strengthening the Gram Sabhas, the closest institution to the Beneficiaries.
5.3. Principles of Social Audit
Eight specific key principles have been identified from Social Auditing practices around the
world:
Student Notes:
7. Verified: Social accounts are audited by a suitably experienced person or agency with no
vested interest in the organisation.
8. Disclosed: Audited accounts are disclosed to stakeholders and the wider community in the
interests of accountability and transparency.
These are the pillars of Social Audit, where socio-cultural, administrative, legal and democratic
settings form the foundation for operationalising Social Audit.
5.4. Significance of Social Audit
The significance of social audit for social sector programmes can be understood from the
following points:
• Enhances reputation: Social Auditing helps the legislature and executive in identifying the
problem areas and provides an opportunity to take a proactive stance and create solutions.
• Alerts policymakers to stakeholder trends: Social Auditing is a tool that helps managers
understand and anticipate stakeholder’s concerns.
• Affects positive organisational change: Social Auditing identifies specific organisational
improvement goals and highlights progress on their implementation and completeness.
• Increases accountability: There is a strong emphasis on openness and accountability for
government departments. Social Auditing uses external verification to validate that the
Social Audit is inclusive and complete. This leads to reduction in wastages and corruption.
• Assists in re-orienting and re-focusing priorities: Social Auditing could be a useful tool to
help departments reshape their priorities in tune with people's expectations.
• Provides increased confidence in social areas: Social Audit can enable departments/
institutions to act with greater confidence in social areas that have been neglected in the
past or have been given a lower priority.
Student Notes:
In recent years due to the steady shift in devolution of funds and functions to the local
government, the demand for social audit has grown. In flagship schemes such as MGNREGA,
the Union Government is promoting social audit to check corruption.
Similarly, various state governments such as Rajasthan and Andhra Pradesh have taken the
initiative to incorporate social audit as part of their monitoring systems through Gram Sabhas
and in partnership with a consortium of NGOs.
6. E-Governance
6.1. What is E-governance?
According to the World Bank, “E-Governance refers to the use by government agencies of
information technologies (such as Wide Area Networks, the Internet, and mobile computing)
that have the ability to transform relations with citizens, businesses, and other arms of
government. These technologies can serve a variety of different ends:
• better delivery of government services to citizens
• improved interactions with business and industry
• citizen empowerment through access to information
• or more efficient government management
The resulting benefits can be less corruption, increased transparency, greater convenience,
revenue growth, and/or cost reductions.”
According to UNESCO, “e-Governance may be understood as the performance of governance
Student Notes:
via the electronic medium in order to facilitate an efficient, speedy and transparent process of
disseminating information to the public, and other agencies, and for performing government
administration activities.”
6.2. Potential of e-governance
• Fast, Convenient and Cost Effective Service Delivery: With the advent of e-Service delivery,
the government can provide information and services at lesser costs, in reduced time and
with greater convenience.
• Transparency, Accountability and Reduced Corruption: Dissemination of information
through ICT increases transparency, ensures accountability and prevents corruption. An
increased use of computers and web based services improves the awareness levels of
citizens about their rights and powers. It helps to reduce the discretionary powers of
government officials and curtail corruption.
• Expanded Reach of Governance: Expansion of telephone network, rapid strides in mobile
telephony, spread of internet and strengthening of other communications infrastructure
would facilitate delivery of number of public services.
• Empowering people through information: Increased accessibility to information has
empowered the citizens and has enhanced their participation. With easy access to the
government services, the faith of the citizens in the government increases and they come
forward to share their views and feedback.
• Improve interface with Business and Industry: Industrial development in India has been
hampered in the past with complex procedures and bureaucratic delays. E-governance aims
to expedite the various processes important for industrial development.
6.3. Models of e-governance
E-Governance services can be shared between citizens, businessman, government and
employees. These four models of e-governance are:- Government to citizen (G2C), Government
to government (G2G), Government to businessmen (G2B) and Government to employees (G2E).
6.3.1. Government to Citizen (G2C)
This model of e-governance refers to the government services which are shared by the citizen.
This model strengthens the bond between government and the citizen. Type of services which
are provided by this model:
• Payment of online bills such as electricity, water, telephone bills etc.
• Online registration of applications
• Online copies of land-record
• Online filling of complaints
• Availability of any kind of online information
6.3.2. Government to Government (G2G)
This model refers to the services which are shared between the governments. There is lots of
information that need to be shared between various government agencies, department and
organizations. These types of services or information are:
• Government document exchange which includes preparation, approval, distribution, and
storage of all governmental documents is also done through e-governance.
• Most of the finance and budget work are also done through e-governance.
6.3.3. Government to Businessmen (G2B)
Through this model, bond between private sector and government strengthens. They share
information through this model like:
Student Notes:
• Collection of taxes
• Rejection and approval of patent
• Payment of all kind of bills and penalty
• Sharing of all kind of information, rules and data
• Complaints or any kind of dissatisfaction can be expressed
6.3.4. Government to Employees (G2E)
This model increases the transparency between government and its employees and thus
strengthens their relationship. Information that can be shared by this model:
• All kind of data submission(attendance record, employee record etc.) from various
government offices
• Employee can file complaints and dissatisfaction
• Rules & regulation and information for employees can be shared
• Employees can check their payment and working record
6.4. E-Governance Initiatives in India
The Government of India is implementing the ‘Digital India’ programme with the vision to
transform India into a digitally empowered society and knowledge economy. Digital India is an
umbrella programme that covers multiple Government Ministries and Departments and is
being coordinated by MeitY (the Ministry of Electronics and Information Technology).
Various e-Governance initiatives taken by Government under Digital India programme are as
follows:
• Under the National e-Governance Action Plan (NeGP) which is now subsumed under
Digital India, core infrastructure components are being implemented such as
o State Data Centres (SDCs),
o State Wide Area Networks (SWANs),
o Common Services Centres (CSCs),
o State e-Governance Service Delivery Gateway (SSDGs),
o e-District and Capacity Building
• e-Kranti (Electronic delivery of services): The focus of the e-Kranti is to transform the e-
Governance services by expanding the
o portfolio of Mission Mode Projects (MMPs) in e-Governance under various Government
Departments,
o undertaking Government Process Reengineering (GPR),
o work flow automation,
o introducing latest technologies such as Cloud and mobile platform and
o focus on integration of services.
Following are some of the successful e-governance initiatives which are being implemented in
India.
6.4.1. Government to Citizen (G2C) Initiatives:
• Computerisation of Land Records (Department of Land Resources): A pilot project on
computerization of Land Records, which was 100% centrally-sponsored started in1994-95
onwards.
• Bhoomi Project in Karnataka (Online Delivery of Land Records): Bhoomi is a self-
sustainable e-Governance project for the computerized delivery of 20 million rural land
records to 6.7 million farmers.
• Gyandoot (Madhya Pradesh): It is an Intranet-based service delivery with the twin
objective of providing relevant information to the rural population and acting as an
Student Notes:
interface between the district administration and the people. The services offered through
the Gyandoot network include: daily agricultural commodity rates (mandibhav), income
certificate, public grievance redressal, BPL family list etc.
• Lokvani Project in Uttar Pradesh: Its objective is to provide a single window, self-
sustainable-Governance solution with regard to handling of grievances, land record
maintenance and providing a mixture of essential services.
• Project FRIENDS in Kerala: FRIENDS (Fast, Reliable, Instant, Efficient Network for the
Disbursement of Services) is a Single Window Facility providing citizens the means to pay
taxes and other financial dues to the State Government.
• MyGov: It aims to establish a link between Government and Citizens towards meeting the
goal of good governance. MyGov encourages citizens as well as people abroad to
participate in various activities i.e. 'Do', 'Discuss', 'Poll', 'Talk', ‘Blog’, etc.
• Digital Locker System: It serves as a platform to enable citizens to securely store and share
their documents with service providers who can directly access them electronically.
6.4.2. Government to Business (G2B) Initiatives
• e-Procurement Project in Andhra Pradesh and Gujarat: To reduce the time and cost of
doing business, to realize better value for money spent through increased competition and
to standardize procurement processes across government departments, this project was
started.
• SWIFT initiative: As a part of the “Ease of Doing Business” initiatives, the Central Board of
Excise & Customs, has taken up implementation of the Single Window Project to facilitate
the Trading Across Borders in India. The Single Window Interface for Trade (SWIFT), would
reduce interface with Governmental agencies, dwell time and the cost of doing business.
6.4.3. Government to Government (G2G) Initiatives
• Khajane Project in Karnataka: The project has resulted in the computerization of the entire
treasury related activities of the State Government and the system has the ability to track
every activity right from the approval of the State budget to the point of rendering accounts
to the government.
6.5. Challenges
There are a large number of obstacles in implementation of e-Governance in India. These can
be categorized under the following:
6.5.1. Environmental and Social Challenges
• Non local Language: e-Governance applications are written in English language which may
not be understandable to many of the people.
• Low IT Literacy: Literacy level of India is very low and even among literate, most of the
people in India are not aware about the usage of Information Technology.
• User friendliness of government websites: Users of e-Governance applications are often
non-expert users who may not be able to use the applications in a right manner.
• Digital divide: It is the separation that exists between the individuals, communities and
businesses that have access to Information Technology and those that do not have such
access. People who are living below poverty line cannot afford a computer and internet
connection for themselves to take the benefits of the e Government and other on-line
services. Digital divide may also be caused by the lack of awareness among the people.
• Resistance to Change: The struggle to change phenomenon can explain much of the
hesitation that occurs on the part of the constituents in moving from a paper-based to a
web-based system to interact with government.
Student Notes:
Student Notes:
Student Notes:
Student Notes:
Keeping the two methods in mind following measures have been introduced for holding
accountability of actors:
• Grievance Redress Mechanisms: Grievance redress mechanisms (GRMs) provide
people with opportunities to use information to influence service delivery.
• Single Window System for Delivery of Services to avoid delays in delivery
• Public Service Delivery Guarantee Acts: in various states like Madhya Pradesh
Bihar, J&K, Delhi, Rajasthan, Uttar Pradesh (to be referred as Right to Public
Services Acts, RTPS Act) that guarantee time-bound delivery of selected services to
the citizen. The Acts are significant as they place the onus of delivery on the service
provider with penalties for delays in service provision.
These initiatives can go a long way in improving the quality of public services and fixing
the accountability at individual level.
2. Discuss what constitutes good governance in the context of India. Also mention some
aspects of social justice and discuss how good governance can act as a facilitator
towards securing justice.
Approach:
• First discuss what good governance means. Try to explain the concept holistically.
Then taking India as a point of departure, discuss what good governance means in
the specific context of India. While doing so, keep in mind the main challenges that
we face as a nation and scrutinize whether good governance should be one that
help us deal with those challenges as a nation.
• Next, explain the concept of social justice. Keep the difference between western
and Indian notions of social justice in mind and bring out clearly how these differ.
• Finally, explain how various aspects of social justice would be relevant only if they
can be secured. Here discuss how good governance can act as a facilitator towards
securing justice and how securing justice is itself an important aspect of good
governance.
Answer:
• Jawaharlal Nehru, in his famous ‘tryst with destiny’ speech had articulated our
main challenges as ‘the ending of poverty, ignorance, disease and inequality of
opportunities’. India’s democratic experience of the past six decades has also
clearly established that our central challenges still relate to social opportunities and
mass poverty.
• Good governance, as a concept, is much larger than mere administrative reforms as
understood in the conventional sense of the term, to the extent that it covers much
more ground and substance. It relates to ethical grounding of governance and must
be evaluated with reference to specific norms and objectives of a particular society.
• Moreover, the concept of good governance is applicable to all sections of society
such as the government, legislature, judiciary, the media, the private sector, the
corporate sector, the co-operatives, societies registered under the Societies
Registration Act, duly registered trusts, organizations such as the trade unions and
lastly the non government organizations (NGOs).
• In the context of India, good governance can be defined as that system of
governance, which helps in securing justice, leads to empowerment of people,
provides employment and ensures efficient delivery of pubic services. These
aspects are relevant to the extent that they help us deal with our central challenges
Student Notes:
effectively. Thus, first and foremost, good governance must aim at expansion of
social opportunities and removal of poverty.
• The concept of social justice, on the other hand, is mostly interpreted as “poverty
alleviation for the working poor”, in both formal and informal sectors, the
employed and underemployed.
• However, in the specific context of India, ensuring social justice means not only to
address poverty, distribution of material goods and social exclusion, as it is in
western societies, but also to remove social discrimination of the ex-untouchables.
• But these aspects of social justice will hold relevance only if they can be secured
and accessed as well as ensured through rule of law.
• It is in this context that good governance becomes important. Securing justice is in
fact, an important aspect of good governance, not only in India, but throughout the
world. For instance, it is only through good governance that security of life and
property, an important public good, can be ensured. Securing justice is based upon
the basic principle that people should be able to rely upon the correct application
of law. It is only through good governance that such access to justice can be
ensured. Moreover, rule of law, which is another important aspect of securing
justice, is related to good governance. This is because it is only good governance
that can ensure that no one is above the law.
• Thus good governance and social justice not only strive towards the same goals, but
securing justice is also an important facet of good governance.
3. Digital India programme has the potential to not only transform the citizen service
delivery, but also provide the much needed impetus for key social and industrial
sectors. Examine.
Approach:
• The question should be structured to spell the aims and objectives of digital India
Programme, highlighting in the process its potential impact on Citizen Service
delivery, Social Sector and Industrial Sector.
• Answer should comprise three parts:
o Aims and objectives of Digital India Programme
o Its potential or intended impact on Citizens service delivery, Key Social and
Industrial Sectors
o Limitations and challenges should be highlighted, especially keeping in mind
the experience of previous government initiatives in this area.
• Conclude by mentioning the provisions that address those challenges.
Answer:
The Digital India programme, aims to promote e-governance and transform India into a
digitally empowered society and knowledge economy. This programme has been
envisaged by Department of Electronics and Information Technology (DeitY) and will
impact ministry of communications & IT, ministry of rural development, ministry of
human resource development, ministry of health and others.
It emphasises thrust to nine pillars of growth areas. If the vision behind the programme
comes to fruition it can bring transformative changes in a wide range of areas such as.
Transformation in Citizens Service Delivery: Digital India aims to ensure that
Government services are available to citizens electronically. It would also bring in
public accountability through mandated delivery of government’s services
Student Notes:
4. Why is redressal of public grievances important for a democracy? Critically evaluate the
functioning of various instruments for redressal of public grievances in India.
Approach:
• Introduce by explaining the concept of Grievance
• Write its importance in democracy
• Write steps taken to resolve the grievance and assessment of these
• Whats more need to be done
Answer:
Grievance as an expression of dissatisfaction made to an organization related to its
products, services and/or process, where a response or resolution is explicitly or
implicitly expected. The basic principle behind this is that if the promised level of
service delivery is not achieved or if the right of a citizen is not honored, then the
citizen should be able to take recourse to a mechanism to have his grievance redressed.
Why to have Grievance redressal
• The poor record of most public agencies in the areas of prompt and effective
redressal of public grievances is a major cause of public dissatisfaction and since
the Government being a service provider, it is bound to meet people’s needs and
aspirations.
Student Notes:
Student Notes:
Answer:
Social Audit refers to the social control over withdrawal and usage of funds drawn from
the state exchequer for programs and policies aimed at the benefit of people. It allows
people to enforce transparency and accountability, thereby providing the ultimate users
an opportunity to scrutinize the development initiatives.
Benefits of Social Audit
• Social Audit facilitates transformation of citizens from a passive recipient to a
demanding client, thus making the Government answerable.
• They help raise awareness about entitlements.
• These Audits allow beneficiaries of different schemes to lodge complaints regarding
malpractices.
• Involvement of people in developmental activities ensures that money is spent
where it is actually needed.
• Unlike the traditional forms of audit, social audit is a continuous process.
• Helps in reduction of wastages & corruption.
• Promotes integrity and a sense of community partnership among people &
improves the standard of governance.
The loopholes in the implementation of Social Audits can be best understood through
the example of MGNREGA where it has been implemented across states.
• Very few states have actually instituted social auditing mechanism despite
mandatory provisions in acts like MGNREGA.
• The involvement of local representatives in malpractices has sometimes resulted in
resistance to social audits.
• The audits are yet to result in effective redressal. While a modest decline in
administrative complaints related to the non-provision of work was observed, there
was an increase in complaints of missing records on material expenditures.
• The impact of audits on other programme outcomes — employment generation,
targeting of the SC/ST population — is often absent.
• The follow-up and enforcement of punishments are weak. Also, there is absence of
establishment of vigilance cells in most of the cases.
• Relative lack of expertise among local bodies and social dynamics sometimes make
it naming and shaming exercise.
Suggestions
• Ensure institutionalisation of social audits across all states making it enforceable
and credible “contract” allocating responsibilities, defining timelines and ensuring
prompt penalty to the guilty.
• Capacity building to facilitate beneficiary-led-audits keeping in mind local
circumstances and empowering local participation.
• Adequate institutional support and adequate budgetary provisions to ensure the
viability of Social Audits.
Learning lessons and adopting measures to address all programme outcomes i.e.
ensure impact of social audits in future course correction.
Student Notes:
6. The reasons for failure of e-Governance projects are anything but technological. Discuss
in the context of India.
Approach:
• Cover e-Governance in its various dimensions
• Reasons for lack of success should cover these dimensions. Give examples
wherever possible.
Answer:
Citizens contact government for various reasons such as trying to influence public
policy, to addressing personal concerns that they have, conducting government
transactions, and finding information on benefits and services that government offers.
e-Governance is one such channel of public service delivery. E-governance is much
more than a technological initiative but is made of a complex set of relationships
between the stakeholder’s commitment, structured developmental processes and
adequate infrastructural resources.
Reasons for e-governance projects falling short of expectations:
• E-governance is seen more as computerisation, office automation and inventory
management rather than as a means of good-governance.
• E-gov was supposed to transform citizens from passive to active participants in
governance. While there are successful incidents such as citizen feedback on net-
neutrality being incorporated in final policy, such examples are few.
• Citizens do not associate much value addition to the e-gov projects. For example in
departments which maintain land records, especially in rural areas, the details
regarding land ownership, cropping patterns etc. were computerized but no legal
sanctity was given to the output generated by such systems in absence of a
commensurate change in the statutes.
• Lack of horizontal integration means that e-governance projects continue to
deliver services in a fragmented and unsatisfactory fashion resulting in the end
users having to approach a multitude of government agencies, thus defeating the
promise of ‘less government'.
• Lack of attention to issues relating to the confidentiality of data such as personal
details of citizens in some cases.
• Digital Divide: There is always the risk of the implementation of e-governance
projects being so prioritized as to benefit only a certain section(s) of the society.
Successful e-governance implementation is about four main components: Identification
of needs of end-users, Business Process Modification, use of IT, and Government intent.
Deficiencies in any of these would result in e governance projects failing to achieve
their objectives.
According to ARC, achieving the desired results would require full political backing, a
determined and resolute approach by all organizations and departments of
Government as well as active and constructive participation by the public. It would
require providing institutional and physical infrastructure for taking e-Governance
initiatives across our cultural and regional diversities and the creation of an
environment that would encourage the adoption of ICT. Thus, apart from the technical
requirement, success of e-Governance initiatives would depend on capacity building
and creating awareness within government and outside it.
Student Notes:
7. Though digital tools can help achieve transparency, efficiency and accountability in
governance, meeting these objectives requires much more than just building a large
digital infrastructure and mere connectivity. Discuss.
Approach:
• Explain the idea behind digital tools and e-governance.
• Give some examples of such initiatives.
• Elaborate upon what else the government needs to do to make digital tools
effective.
Answer:
Digital tools are aimed at reforming the functioning of the government. The
advantages they bring with them are transparency, efficiency and accountability in
governance, making the government citizen-friendly.
It makes use of platforms and services such as Aadhaar, payment gateways, Mobile
Seva platform, databases, IT infrastructure and more. E-Kranti and National e-
Governance Program are aimed at usher in an era of e-governance.
Putting these tools in place requires ICT infrastructure and connectivity in the form of
internet. But, implementation of such projects, globally, is witness to the fact that
these alone are not enough.
For these tools to be effective, the following steps are need too:
Improving work culture in government offices
• A strong will and political commitment to the vision of e-governance is needed
from within the government to utilise these tool effectively
• The government staffs needs to imbibe the values of transparency, accountability
and efficiency. Then digital tools can be efficiently used to usher good governance.
• Training and capacity building on the use of these tools in terms of necessary skills
and knowledge to conceptualise, initiate, implement and sustain these initiatives.
• Digital tools need to be encouraged in local governments as they are closest to
citizens
• The IT Act 2002 need to be suitably amended so as to encourage use of digital tools
– emails, SMS for speedy communication among offices and with public.
• The public offices should make proactive disclosure of information as mandated in
RTI act using digital tools like websites so as to usher transparency.
• Adoption of quality as a mission in government offices, as was done in Japan
• Demonstrating potential benefits in strengthening processes to enhance citizen
satisfaction and thus overcoming resistance to change from various quarters
• Developing performance measures that demonstrate how these tools help achieve
transparency, efficiency and accountability.
Empowering citizens
• Digital Divide needs to be bridged by ensuring that every citizen is e-literate.
• Local Language: Creation of contents, kiosks in the local language will help wider
participation of people, especially in rural areas.
• Awareness: Raising awareness among public through media, NGOs and
demonstrations about digital tools will help greater utilisation
Student Notes:
8. According to the World Bank, while digital technologies have spread rapidly in much of
the world, resulting digital dividends have lagged behind. Analyse in the context of
India.
Approach:
• Write briefly about increased use of digital technology in India.
• Highlight expected potential benefits.
• Discuss causes for poor realization of digital dividends.
• Suggest measures to reap digital dividends.
Answer:
Digital technologies are making inroads in the remotest parts of India owing to various
government efforts and tech-inspired business initiatives of private sectors. No sectors
of Indian economy and public sector is left untouched by the digital revolution. The
government has made significant efforts to strengthen digital ecosystem in India
through initiatives like Bharat Net, Digital India, National e-governance Plan.
Digital dividends
Growth, jobs and services are the most important returns to digital investments. By
reducing information costs, digital technologies greatly lower the cost of economic and
social transactions for firms, individuals, and the public sector. They promote
innovation when transaction costs fall to essentially zero. They boost efficiency as
existing activities and services become cheaper, quicker, or more convenient. And they
increase inclusion as people get access to services that previously were out of reach.
In India, it is expected that wide scale use of digital technologies would usher good
governance, bring ease of doing business, create India as knowledge economy and
empower people of India, especially vulnerable section of society.
However, the World Bank in its recent report highlighted that digital dividends are not
spreading rapidly.
• Almost 1.063 billion Indians are offline and they cannot participate in the digital
economy in meaningful way.
• There exist digital divides across gender, geography, age, and income dimensions.
• Approximately 40% population is living below poverty line, illiteracy rate is more
than 25-30% and digital literacy is almost no-existent among more than 90% of
India’s population.
Not surprisingly, the better educated, well connected, and more capable have received
most of the benefits—circumscribing the gains from the digital revolution.
Student Notes:
VISION IAS
Student Notes:
Student Notes:
Student Notes:
• Entry into Imperial Police was thrown open to Indians only after 1920 and the following
year examinations for the service were conducted both in England and India.
• Despite recommendations of the Islington Commission and the Lee Commission,
Indianisation of police services remained slow with 20% of total posts in 1931.
Forest Services
• In 1864, Imperial Forest Department was set up. Imperial Forest Service was constituted in
1867. From 1867 to 1885, the officers appointed to Imperial Forest Service were trained in
France and Germany.
• In 1920, it was decided that further recruitment to the Imperial Forest Service would be
made by direct recruitment in England and India and by promotion from the provincial
service in India
With the inauguration of the Constitution of India in January 26, 1950, the Federal Public
Service Commission came to be known as the Union Public Service Commission, and the
Chairman and Members of the Federal Public Service Commission became Chairman and
Members of the Union Public Service Commission by virtue of Clause (1) of Article 378 of the
Constitution.
After independence, the civil servants were no more expected to perform the role of a police
state. The welfare of the Indian subjects was viewed as the central task to be performed by the
Indian state and hence they were to be an instrument to carry out welfare functions which,
among other things, included the settlement of refugees and providing minimum conditions for
their day-to-day living, safeguarding the national borders from external aggression and
promoting conditions responsible for internal peace.
The ethos of the civil service in independent-India changed from welfare-orientation in the late
1940s to development-orientation between the 1960s and 1980s, and finally to facilitator's role
in the 1990s, as dictated by the environmental challenges, collective choice mechanisms
reflected in the manifestos issued by the various political parties during the 1996, 2000 and
2004 general elections, and the challenge of meeting the democratic needs of the teeming
millions.
1.2. Current Status
In India, the various Civil Services at the Union and State levels can be classified in different
ways. Firstly, the Civil Services can be categorized into three broad groups –Central Civil
Services, All India Services and the State Civil Services.
• The Central Services function under the Union Government and are generally engaged in
administering subjects which are assigned to the Union under the Constitution.
• All India Services are common to the Union and the States and the State Services function
only under the State Governments.
• The Union and State Services can be classified into Group A, B, C and D categories based
on their role and responsibilities.
• These services can also be classified into technical and non-technical services.
The selections to the All India Services and Group A and some Group B services are conducted
by the Union Public Service Commission (UPSC). The incumbents to some Group B, Group C and
D services are selected by the Staff Selection Commission. The State governments have their
own State Public Service Commissions. The working of these Commissions is controlled by a
separate Act.
Student Notes:
Student Notes:
programmes, laying down laws, rules and regulations, which affect human actions in almost
all walks of life.
• Provides continuity: Civil services carry on the governance when governments change due
to elections etc. Ramsay Muir has remarked that while governments may come and go,
ministers may rise and fall, the administration of a country goes on forever. It is needless to
say that civil services form the backbone of administration.
• Role in socio- economic development: The developing nations are struggling to achieve
modernisation of society and economic development and realize welfare goals. These
objectives have placed challenging tasks on public administration such as formulation of
economic plans and their successful implementation to economic growth and social
change. Civil servants play an important role in socio-economic development in the
following ways:
o To develop agriculture, civil servants have to properly manage community resources
such as land, water resources, forests, wetlands and wasteland development.
o To facilitate industrial development, infrastructural facilities such as roads,
electricity, communications, market centres etc. have to be provided. In these
countries, the civil service manages government owned business, industrial enterprises
and public utility services
o Setting right developmental goals and priorities for agriculture, industry,
education, health, communications etc.
o Formulation and implementation of strategies and programmes for the
development and modernisation of the nation.
o Mobilisation of natural, human and financial resources and their proper utilization
for accomplishing developmental objectives.
o Development of human resources to secure the necessary managerial skills and
technical competence to carry out the developmental tasks.
o Creation of new administrative organisations and improving the capacity of the existing
ones for the developmental purposes.
o Securing the support of the people for developmental activities by involving them in
the process of development by creating appropriate attitude towards the socio-
economic changes that are taking place in society.
o Promotion of clean and green environment and protection of human rights.
• Developing a sense of nationhood: Several divisive forces such as communal and ethnic
conflicts, caste feuds and regional rivalries often threaten the national unity. In order to
develop a sense of nationhood among the people of these countries, the civil servants have
to resolve the sub-national and sub- cultural differences among the people.
• Facilitating democracy: The civil servants play a vital role in maintaining the democratic
ideals by assisting their political heads (Ministers) in policy-making function and in
implementing the policies made. Since developing countries are new to the democratic
institutions, it is only the stable and efficient civil service that can strengthen the
democracy.
• Calamities and crisis: Natural calamities such as earthquakes, floods, droughts and cyclones
have also enhanced the importance of civil services. In the event of occurrence of such
natural calamities, the public administrators have to act quickly and undertake rescue
operations in order to prevent loss of life and property of the affected people.
• Administrative adjudication: This is a quasi- judicial function performed by the civil service.
The civil servants settle disputes between the citizens and the state. For this purpose, the
Administrative Tribunals, with civil servants as judges are established. For example: The
Income Tax Appellate Tribunal.
• In addition to above, some other functions performed by civil service are:
Student Notes:
o Assisting ministers in fulfilling their responsibilities towards the parliament and its
committees.
o Handling financial operations of the state.
o Reforming and improving administration through O and M (i.e. organization and
methods)
2.2. Bureaucracy and Democracy
Bureaucracy is the executive arm of the government. Democracy is the process whereby the
government is elected by the people whereas Bureaucracy is the system in which elected
government employs competent state officials to run state matter. They are selected by
government through merit based process.
Evolution of bureaucracy since independence
• Nation Building: After independence, bureaucracy set out to implement agenda of its
political masters. It included commitment to democratic socialism, secularism and non-
alignment.
• Democratization of Bureaucracy: After the 1967 assembly elections, civil services got major
fillip with increased representation of backward castes. Later representation was given
impetus post Mandal commission recommendations. Experts argue that it led to
democratization of the bureaucracy.
• Committed Bureaucracy: This idea emerged in 1970s and 80s. The idea most
fundamentally, entailed that a bureaucrat should be hundred percent committed to the
policies and programmes of the political party in power. By extension, this also implied full
commitment to the individual politicians holding power. A bureaucrat was not to be guided
by any other consideration.
• License permit Raj: Due to socialist model of development, license was needed to start any
business –small or big. The discretionary power rested with bureaucracy who could give
license against favors granted by the concerned businessman.
• Globalization: It marked the watershed era for Indian bureaucracy. By liberalization of the
economy is meant freeing a national economy from governmental control and letting it run
as per the market forces
Issues
• Ministers or Bureaucrats: Critics argue that appointing legislators on the executive post is
faulty practice and rife with perils. Elected representatives should look to resolve social
issues and form laws, not become administrators. To expect them to deliver quality services
in the age of specialization and technology is absurd. When career politicians are placed in
charge of career administrators, it defeats the purpose of both.
• Politicization of bureaucracy: This defeats the bureaucrats' primary purpose of providing
non-partisan and efficient administration. As soon as the government changes, the
administrators have to train and teach ministers about the finer aspects and technicalities
of departments. Also the authority granted to politicians begets patronage, not
performance. And with no other oversight and scrutiny, they become cohorts in corruption.
• Politicians – bureaucrats – Businessman nexus: The nexus was borne out of license quota
raj where politicians and bureaucrats had discretionary power over allocation of natural
resources in the country. This led to this unholy nexus and crony capitalism. It has
undermined the democratic credentials of the country.
• Attitude of the bureaucracy: Subsequent to the structural adjustment of the economy
consequent to liberalization, there have been perceptible shifts in the attitude of the
bureaucracy. In the initial phase, they were openly hostile to these reforms. They proved to
Student Notes:
the obstruction to development, instead of being a facilitator. However, this trend has
changed over the years.
2.3. Cadre based Civil Service
What is Cadre based Civil Service?
▪ Cadre literally means a small group of trained people who form basic unit of a military,
political or business organization.
▪ In All India Services, once selected, candidates are assigned cadres based on their
preferences, merit and availability of positions.
▪ In India, each state is a cadre with some exceptions like AGMUT and DANICS. These are joint
state cadres with multiple states.
Need of Cadre system in civil Service
Key administrative and police positions in state governments are designated as ‘cadre posts’
signifying that they may only be held by IAS/IPS. This is deliberate features of All India Service
to promote quality, impartiality, integrity and All India outlook.
Issues with Cadre based Civil Services
Civil Services in India has been constitutionally designed in way that it maintains all India
character and ‘outsiders’ are posted in state cadre. ‘Outsiders’ to state cadre would ensure a
higher level of objectivity and neutrality in a system which was likely to face enormous regional
and local pressure. But in the 1980s and 90s, partisanship, local considerations and nepotism
crept into the system.
• Permanency of cadres: It results in inefficiency and ineffectiveness in the working of civil
services. It diminishes the all India character and limits the officers’ concern to local issues.
• Provincialization: According to ‘Public Institutions in India – Performance and Design by
Mehta and Kapoor’ there is a feeling that IAS officers are ‘all India’ in name only. As the
proportions of officers who genuinely alternate between state and central government has
declined.
• Adoption of best practices: Provincialization of civil services reduces capacity of the civil
services to adopt and disseminate good practices of other cadres.
• Collusion with local politicians: For the want of preferred and plum postings, the officers
collude with local politicians and officers.
• Specialized Positions: According to 2nd ARC, cadre based civil services has limited the
recruitment of persons with specialized knowledge at important positions through lateral
entry.
• Large variation: There are large variations in the size of IAS cadres with respect to total
state populations. As a result, the IAS cadre in UP is 40% smaller than it should be while in
Sikkim it is 15 % more than it should be, based on population alone.
• Central Deputation: According to ‘Public Institutions in India – Performance and Design by
Mehta and Kapoor’ many small states have much better representation in central ministries
and departments than their larger peers.
• Reluctance to ‘de-cadre’ positions: Due to changing social and economic conditions some
posts diminished in importance. But they were rarely ‘de-cadred’. For ex – In many states,
the post of Land Settlement Officer is still encadred, decades after overwhelming majority
of land tenure/land revenue settlement work was completed.
Way Ahead
• The New Cadre policy (2017) looks to resolve these issues. The new policy is aimed at
ensuring ‘national integration’ in the country’s top bureaucracy.
Student Notes:
• The new policy will seek to ensure that officers from Bihar, for instance, will get to work in
southern and north- eastern states, which may not be their preferred cadres.
• All India Services officers are supposed to have varied experience which can be earned if
they work in different states. It will also give them knowledge of best practices.
• Lateral Entry: Also the recent move by the government to directly recruit experts for
specialized position is a welcome move and in accordance with the recommendation of 2nd
ARC.
• Reduction in size of cadres: The proliferation of inconsequential posts is a proximate cause
of both demoralization and the ability to use transfer as a penalty. Therefore the size of
cadres should be reduced after periodic reviews.
Student Notes:
Student Notes:
The Indian civil service system is rank-based and does not follow the tenets of the position-
based civil services. This has led to the absence of a specialised civil service system in India. The
basic philosophy of the Indian civil service system has contributed a lot to this phenomenon, as
it puts heavy emphasis on the recruitment of generalists and not specialists. The incumbents of
the Indian civil service enjoy very short tenures, usually less than one year. All India Services
have been criticized for non-federal character.
Thus main issues associated with civil services in India can be summarized as:
• Problems of All India Services
• Absence of accountability
• Out-dated laws, rules and procedures
• High degree of centralization
• Poor work culture and Lack of professionalism
• Politicization of services and political Interference
• Negative power of abuse of authority and Corruption
• Generalist civil servants in globalized world
All these issues create a conflict between civil services and democracy in following ways:
• Rigid organization structures and cumbersome procedures.
• Elitist, authoritarian, conservative outlook.
• Men in bureaucracy fulfil segmental roles over which they have no control. Consequently,
they have little or no opportunity to exercise individual judgment.
• The requirement that a bureaucrat should follow the principles of consistency and
regularity automatically limits his capacity to adapt to changing circumstances.
• The general rules which may take for overall efficiency produce inefficiency and injustice in
individual cases.
• Civil services’ difficulty to cope with uncertainty and change is a key limit on its efficiency.
3.2. Issues with All India Services
3.2.1. Significance of All India Services (AIS)
Parliament passed the All India Services Act, 1951, empowering the Union Government, in
consultation with the State Governments, to make rules for regulation of recruitment and
conditions of service of persons appointed to these All India Services (AIS). The framers of the
Constitution also provided for creation of AIS in other spheres, if the Rajya Sabha declared, by
resolution supported by not less than two-thirds of the members present and voting.
All-India level services are rendered at national level with officers for these services being hired
at by central government through UPSC examination. However, their postings can be allotted at
both central as well as state government levels through different state level cadres.
• AIS promote the unity and solidarity of the country by combating parochial attitudes of the
States.
• Because the officers of these services are generally posted in states other than their own,
they are less susceptible to local and regional influences than officers from within the state
would be.
• The officers of these services can be and are rotated between the Centre and the states,
thus, facilitating liaison between the two.
• These services are recruited from a wide field and enjoy high remuneration, status and
prestige.
• The members of the AIS hold the key posts in the states, and they can give independent
advice to the state ministers, which the officers of state services may hesitate to do.
Student Notes:
• In the event of national or constitutional emergency, the Union government can act
through AIS.
• Union government stays in touch with ground realities through AIS.
3.2.2. Issues with All India Services
The Sarkaria Commission on Centre-State Relations sought the views of the State Governments
on:
• Whether the AIS have fulfilled the expectations of the Constitution makers; and
• Whether the State Government should have greater control over them.
Most of the State Governments agree that the AIS have, by and large, fulfilled the expectations
of the Constitution-makers. However, some State Governments have expressed concerns such
as:
• Relevance of AIS years after independence: The framers of the Constitution provided for
the AIS because of the serious problems of politico-administrative management and
instability then faced by the country. However, the Union and the State Governments have
since acquired adequate political, administrative and managerial experience.
• Indian Police Service (IPS): As all key positions in the State police are held by members of
IPS, the State Government's responsibility in regard to public order has got whittled down.
• Against Federalism: It is argued that winding up AIS and separate civil services of state and
centre would bring the working of these Governments closer to a federal system.
• The unity and integrity of the country and national integration should rest on more durable
factors, like economic prosperity, strong elective institutions, etc., and not on an
administrative apparatus, like the AIS.
• Authority –Responsibility Gap: AIS officers tend to think that they are under the
disciplinary control of the Union Government and not the State Government. A few State
Governments have emphasised that an AIS officer should be under the full disciplinary
control of 'the State Government under which he is serving.
• Cadre allocation Policy: The policy of the Union to induct at least 50% outsiders in each
State cadre of an AIS implies that these outsiders are more amenable to the control of the
Union Government than the insiders. This approach accentuates hostility between the AIS
and the State Services as well as between the former and the political leadership in a State.
States perceive this to be a clever ploy of the union government to gain control over state
government.
• Son of soil theory: Outsiders are vaguely aware about language, ethos, profile of the state
which they are posted.
• AIS under Union List: AIS are joint responsibility of centre and state, yet it is under Union
list (Entry 70).
• Formation of New AIS: The question of the formation of new AIS has been an important
area of friction between the Central Government and the States mainly due to three
reasons:
o creation of new AIS cuts at the effective spread of State services, thus, reducing the
employment opportunities for the sons of the soil,
o AIS encroach upon State autonomy, and
o they also involve larger expenditure because of high salary scales.
• Central Deputation: Unto 1984, central deputation was done on the consent of the state
government which has been dispensed with.
Student Notes:
Student Notes:
• Further continuance in government service would depend upon the outcome of the
intensive performance reviews.
4.2. Emphasize Performance
The present promotion system in civil service is based on time-scale and is coupled by its
security of tenure. These elements in our civil service are making the dynamic civil servants
complacent and many of the promotions are based upon the patronage system. A government
servant’s promotion, career advancement and continuance in service should be linked to his
actual performance on the job and the dead wood should be weeded out.
• The promotions should be merit based and the respective authorities have to benchmark
the best practices and evaluate the performance of the civil servants both qualitatively and
quantitatively with a variety of parameters.
• Performance Related Incentive Scheme: The Sixth Pay Commission recommended
introduction of a new performance based pecuniary benefit, over and above regular salary,
for the government employees. It is based on the principle of differential reward for
differential performance. The end objective of introducing PRIS in government is not just
limited to improving employee motivation; obtaining higher productivity or output and
delivering quality public service; but it seeks larger goals of effectiveness and systematic
change for responsive governance.
• 2nd ARC recommendations on Performance Management system
o Making appraisal more consultative and transparent - performance appraisal systems
for all Services should be modified on the lines of the recently introduced PAR for the
All India Services.
o Performance appraisal should be year round: provisions for detailed work-plan and a
mid-year review should be introduced for all Services
o Guidelines need to be formulated for assigning numerical rating
o Government should expand the scope of the present performance appraisal system of
its employees to a comprehensive performance management system (PMS).
o The PMS should be designed within the overall strategic framework appropriate to the
particular ministry/department/organization.
4.3. Competition and Specialist Knowledge for Senior Level Appointments
The task of policy making in government is complex and needs specialist knowledge of the
subject. Under the existing system, the most senior level appointments in the Central
secretariat as well as top field level posts are made from amongst the Indian Administrative
Service (IAS) officers who are generalists.
• The First Administrative Reforms Commission, far back in 1969, had emphasized the need
for specialization by civil servants as a pre-qualification for holding senior level posts. It
suggested that all the Services should have an opportunity to enter middle and senior level
management levels in Central Secretariat and selection should be made by holding mid-
career competitive examination, which should include interview, to be conducted by UPSC.
• The Surendra Nath Committee (2003) and Hota Committee (2004) had also emphasized
domain knowledge and merit as the basis for appointment to the posts of Joint Secretary
and above.
2nd ARC recommendations in this regard:
• The 2ndARC identified 12 domains in which officers should specialize such as general
administration, urban development, security, rural Development etc. It has recommended
that domain should be assigned to all the officers of the All India Services and Central Civil
Services on completion of 13 years of service and vacancies at the level of Deputy
Student Notes:
Secretary/ Director should be filled only after matching the domain competence of the
officer for the job.
• The Commission has suggested introduction of competition for senior positions in the
Senior Administrative Grade and above (Joint Secretary level) by opening these positions to
all the Services.
• For Higher Administrative Grade posts (Additional Secretary and above) recruitment for
some of the posts could be done from open market.
• It has further suggested constitution of a statutory Central Civil Services Authority which
should deal with matters of assignment of domain, preparing panel for posting of officers at
different levels, fixing tenures and determining which posts should be advertised for lateral
entry.
4.4. Effective Disciplinary Regime
Presently, the provisions of discipline rules are so cumbersome that it becomes very difficult to
take action against a delinquent employee for insubordination and misbehaviour. Thus, once
appointed, it is almost impossible to remove or demote an employee. This results in poor work
culture and all round inefficiency.
The provisions of Civil Service Conduct and Discipline Rules are porous and complicated with
numerous loopholes and weighted in favour of the delinquent.
2nd ARC recommendations in this regard:
• The 2nd ARC has observed that legal protection given has created a climate of excessive
security without fear of penalty for incompetence and wrong doing.
• In the proposed Civil Services law, the minimum statutory disciplinary and dismissal
procedures required to satisfy the criteria of natural justice should be spelt out leaving the
details of the procedure to be followed to the respective government departments.
• The present oral inquiry process should be converted into a disciplinary meeting or
interview to be conducted by a superior officer in a summary manner without the trappings
and procedures borrowed from court trials.
• No penalty of removal and dismissal should be imposed, except by an Authority, which is at
least three levels above the post which the government servant is holding.
• No penalty may be imposed, unless an inquiry is conducted and the accused government
servant has been given an opportunity of being heard.
• The two-stage consultation with the CVC in cases involving a vigilance angle should be done
away with and only the second stage advice after completion of the disciplinary process
should be obtained.
• Consultation with the UPSC should be mandatory only in cases leading to the proposed
dismissal of government servants and all other types of disciplinary cases should be
exempted from the UPSC’s purview.
4.5. Transforming Work Culture
Most government departments suffer from poor work culture and low productivity. In order to
provide cost-effective efficient services, following measures can be taken:
• The multi-level hierarchical structure should be reduced and an officer oriented system
with level jumping be introduced to speed up decision making.
• Government offices should be modernized with provision of computer and other gadgets
and a conducive work environment should be created.
• Officers need to be motivated and empowered by giving them more responsibility and
decision-making authority.
Student Notes:
• There is a need to create a lean, thin and efficient government machinery by modernizing
procedures and work methodology and abolishing the ‘babu’ culture in the government
offices.
4.6. Streamline Rules and Procedures
A large number of rules and procedures relating to citizen's day to day interface with
government in matters such as issue of passport, registration of property, sanction for
construction of dwelling unit, licence for starting a business, inspection of factories, are
outdated and dysfunctional and give opportunity to public servants to delay and harass.
• These rules should be updated, simplified and discretionary power of public servants be
eliminated.
• A good part of efficiency of a government office depends on personnel, financial and
procurement management systems. The rules relating to personnel management are
outdated and rigid and give no flexibility to departments to adapt to local conditions
resulting in inefficiency.
• The budgetary and procurement rules should be changed, giving sufficient flexibility to
departments to be able to use their judgement to secure the best value for money.
4.7. Privatization and Contracting Out
In an era of liberalization, there is economic logic to privatize those state owned enterprises
which are either running in loss or in the tertiary sector of the economy such as hotel, tourism,
engineering and textile sector, where they cannot compete with private sector and are a big
drain on national resources.
• There is a strong case for privatization of services like municipal street cleaning, garbage
collection, power distribution, city transport etc.
• Experience has shown that increasing use of competition in the delivery of public services,
including competition between public and private sector providers has improved cost
effectiveness and service quality.
4.8. Adoption of IT and E-Governance
The revolution in information technology has brought into focus its adoption for good
governance.
• E-governance can reduce distances to nothing, linking remote villages to government
offices in the cities, can reduce staff, cut costs, check leaks in the governing system, and can
make the citizen-government interaction smooth, without queues and the tyranny of clerks.
• But it must be remembered that e-governance is only a tool for good governance. It cannot
succeed independent or responsive officers and it has to be owned by the political
leadership.
4.9. Stability of Tenure
There is a genuine problem being faced by officers, especially in the case of All India Services
serving in the state governments, relating to their tenures.
• There is usually a reshuffling of officers with change in government and in certain states the
average tenure of DM and SP has now come to less than a year only. Such a rapid turnover
of officers adversely affects delivery and quality of services provided to the common man.
• The ever present threat of transfer also affects the morale of the officers and their capacity
to stand up to undesirable local pressures.
Student Notes:
• In the long run, frequent transfer of officers of the All India Services in the states delays
implementation of projects and also prevents officers from picking-up meaningful
experience which would enhance their value to the state government and the Central
government when they hold higher positions at the policy making levels.
In this context Hota committee on civil services reform suggested the following:
• A fixed tenure of at least three years for an officer of the higher civil service along with
annual performance targets.
• A Civil Services Act has to be enacted to make the Civil Services Board / Establishment
Board both in the states and in the Government of India statutory in character.
• If a Chief Minister does not agree with the recommendations of the Civil Services Board/
Establishment Board, he will have to record his reasons in writing.
• An officer transferred before his normal tenure even under orders of the Chief Minister can
present the matter before a three-member Ombudsman.
• In all such premature transfers the Ombudsman shall send a report to the Governor of the
state, who shall cause it to be laid in an Annual Report before the State Legislature.
4.10. Depoliticization of Civil Services
Following are the recommendations of 2 nd ARC on relations between political executive and
civil servants:
• There is a need to safeguard the political neutrality and impartiality of the civil services.
• The onus for this lies equally on the political executive and the civil services.
• This aspect should be included in the Code of Ethics for Ministers as well as the Code of
Conduct for Public Servants.
• While examining the definition of corruption under the Prevention of Corruption Act, 1988,
the “abuse of authority unduly favouring or harming someone” and “obstruction of justice”
should be classified as an offence under the Act.
Student Notes:
• It is essential to lay down certain norms for recruitment in government to avoid complaints
of favouritism, nepotism, corruption and abuse of power. These norms are:
o Well-defined procedure for recruitment to all government jobs.
o Wide publicity and open competition for recruitment to all posts.
o Minimisation, if not elimination, of discretion in the recruitment process.
o Selection primarily on the basis of written examination or on the basis of performance
in existing public/board/university examination with minimum weight to interview.
To insulate the bureaucracy from political interference and to put an end to frequent transfers
of civil servants by political bosses, the Supreme Court in 2013 issued a series of directions to
insulate civil servants from political influence. Following are the directions issued by the
Supreme Court in T.S.R. Subramanian and others vs. Union of India:
• Officers of the Indian Administrative Service (IAS), other All India Services and other civil
servants were not bound to follow oral directives, since they "undermine credibility". All
actions must be taken by them on the basis of written communication.
• Establishment of a Civil Services Board (CSB), headed by the Cabinet Secretary at the
national level and chief secretaries at the state level, to recommend transfers and postings
of All India Services (IAS, IFS and IPS) officers. Their views could be overruled by the political
executive, but by recording reasons only.
• Parliament to enact a Civil Services Act under Article 309 of the Constitution setting up a
CSB
• There should be fixed minimum tenure.
• Group 'B' officers would be transferred by heads of departments (HoDs).
• No interference of ministers, other than the chief minister, in transfers or postings of civil
servants.
4.11. Lateral entry into civil services
Lateral entry into civil services refers to induction of eligible candidates into bureaucracy by
bypassing the regular mode at a higher level of its hierarchical structure.
In June 2018, the Department of Personnel and Training (DoPT) issued notification inviting
applications for 10 senior level positions at the joint secretary level in the Departments of
Economic Affairs, Revenue, Commerce and Highways among others.
The eligibility criteria includes “Individuals working at comparable levels in Private Sector
Companies, Consultancy Organisations, International/Multinational Organisations with a
minimum of 15 years' experience” besides those working in central public sector undertakings,
autonomous bodies, statutory organisations, research bodies and universities.
According to the DopT, the recruitment will be on contract basis for three to five years. The
intake will be made in 10 departments initially but will expand to other categories in the second
phase.
Student Notes:
• Burden to Exchequer: Recruitment through formal process comes with economic baggage
of lifetime of salary, pensions and other perks. Constitutional safeguards prevent removal of
even non-preforming officers. This anomaly could be resolved through lateral entry.
• Incentives to innovations: It is believed that bringing professionals from private sector
would bring fresh ideas and usher innovative problem solving methods to otherwise a
monolithic institution.
• Competition: It will push career bureaucrats towards healthy competition to perform
better. Also it will act as a warning sign of ‘perform or perish’.
Issues with lateral entry
• Bypassing UPSC: UPSC is a constitutional body and has retained legitimacy and credibility of
selection process over the years. Some experts opine that lateral entry is unconstitutional
in nature.
• Not a Panacea: It is also argued that it is a piecemeal effort to deal with a systemic
problem. Bureaucracy needs major overhauling.
• Offers not lucrative enough: Most of the times, the terms of recruitments are not
rewarding enough to attract best of talents. Even the recent lateral entry initiative would
recruit professionals for only 3 years with remuneration not competitive with private sector.
• Open door to privatization: Some civil servants believe that it would open the floodgates to
privatization. And eventually government would lose its socialist and welfare
characteristics.
• Transparency is recruitment: Government should ensure that the recruits remain
independent of “fissiparous tendencies. The sanctity of the selection procedure should
remain for the services to stay insulated from the government of the day.
Way Ahead
• 2nd ARC recommended an institutionalized, transparent process for lateral entry at both
the Central and state levels. But pushback from bureaucrats, serving and retired, and the
sheer institutional inertia of civil services that have existed largely unchanged for decades
have prevented progress.
• Also the parliamentary standing committee on external affairs headed by Dr. Shashi Tharoor
has urged the government to facilitate the entry of Non-Resident Indians (NRIs) into foreign
service in order to expand the country’s diplomatic corps.
• In addition to lateral entry, the method of civil service training also needs to be revamped.
4.12. Other Important Recommendations of 2nd ARC
2nd ARC in its 10th report “Refurnishing of Personnel administration” has made various
recommendations under 22 major headings. Few of the major recommendations are already in
the above topics. Some of the other important recommendations are:
Stage of Entry into the Civil Services
• Government of India should establish National Institutes of Public Administration to run
Bachelor’s Degree courses in public administration.
• Selected Central and other Universities should also be assisted to offer such graduate level
programmes.
• Graduates of the above mentioned special courses from the National Institutes of Public
Administration and selected universities would be eligible for appearing in the Civil Services
Examinations.
Student Notes:
Student Notes:
• Permanency
• Recruitment based on merit etc.
This has led to problems surrounding current bureaucracy:
• Lacking transparency
• Unresponsive to public needs.
• Inefficiency
• Corrupt practices.
Inspite of two Administrative Reforms Commission reports not much has changed.
Problems with present system of appraisal and need for new appraisal system:
• A closed system for appraisal of civil servants in India (other than the All India
Services).
• It lacks in quantification of targets and evaluation of performance standards.
• Possible bias on the part of superiors, political influence; etc.
What is Mid Career Performance appraisal?
Mid-career Performance appraisal is meant to be a joint exercise between the
Government servant reported upon and the Reporting Officer particularly after every
fixed period for taking note on performance.
While fixing the targets, priority should be assigned item-wise, taking into consideration
the nature and the area of work.
• It’ll update the knowledge and efficiency in work base of the participant in the
rapidly changing environment.
• Will help to develop competencies for changes in the job profile, as would happen
when a promotion takes place.
• Can also serve as a medium for enhancing formal qualifications, thereby creating
greater confidence in an officer.
• Good hardworking civil servants will get rewarded
• Clear performance standard shall be fixed.
• Reduction in political interference due to fixed targets and continuous reports of
performance of civil servants.
• It would compel bureaucrats to put more diligence to score a better review.
• Induce professionalism in the departments.
• Weeding out of the inefficient lot would make place for better candidates.
Positives of Compulsory retirements:
• Deterrence for non-performing officials.
• It may induce culture among officials of hard work and efficiency.
• Inertia among bureaucrats to start new work or take risk will be reduced
• Provide motivation to bureaucrats
Negative effects:
• May be misused as a political tool against honest officers.
• Although ministers and bureaucrats work hand in hand but this may give former
greater control on latter sometimes detrimental to officers efficiency.
Student Notes:
2. How does the short tenure of civil servants in India leads to their less effective
management? Critically discuss the move of setting up a civil services board in order
to address this issue.
Approach:
• Firstly, bring out a brief picture of issue of brief tenure of civil servants in India.
• Secondly, lay down the key issues associated with the short tenure of civil servants
in India.
• Thirdly, bringing out concept of setting up of civil service boards and discuss if it will
effectively resolve the persisting issues citing both benefits and concerns.
Answer:
Civil Servants do not have stability of tenure, particularly in the state governments,
where transfer and postings are made frequently, at the whims and fancies of the
executive head.
Following issues are associated with short tenure of civil servants:
• Short tenure and dependence on political class for postings leads to the
partisanship in civil servants giving rise to other menace like corruption, conflict of
interest, nepotism and erosion of neutrality.
• Lack of security of tenure for important posts in India had greatly hampered the
morale and efficiency of civil service.
• Short tenure leads to less effective performance measurement and appraisal of the
civil servants.
• Arbitrary transfer of civil servants holding important post sometime goes against
the principles of public interest and good governance.
• Stable tenures are necessary for enabling the incumbent to learn on the job,
develop his own capacity and then contribute in the best possible manner.
Thus, to safeguard the Civil service from politicization and patronization, the second
ARC as well the Supreme Court in 2013 recommended the setting up of the Civil Service
Board with objectives of:
• Shielding the bureaucracy from political interferences and put an end to frequent
transfers of civil servants
• Looking into the managements of transfers, postings, and inquiries, process of
promotion, rewards, punishment and disciplinary matters.
• Providing stability to the civil servants and will uphold the neutrality and
objectiveness in the functioning of civil servants.
But there are some issues that might hamper the purpose of setting up of the Civil
Service Boards:
• The competent authorities, i.e. Prime Minister in case of Centre and Chief Minister
in case State may amend, modify or reject the recommendation of the civil services
board for the reasons to be recorded in writing.
Student Notes:
• The board is to be headed by the Chief Secretary of the State who might have
conflict of interest in the process.
Thus, apart from setting up of Civil Service Board, the political seclusion of it is required.
Also some watchdogs like clearance from Lokayukta in case of premature transfer could
be introduced into the setup.
3. The public policy requirements of the 21st century demand a bureaucracy less
generalist in nature. Analyse in the context of Indian civil services.
Approach:
• One can either introduce with the generalist v/s specialist debate or first list the
requirements of the 21st century bureaucracy and then approach the question.
• Associate the requirements of bureaucracy with ability of the generalist or the
specialist to meet them.
Answer:
In general, public servants are expected to be aware of multiple facets of public policy
rather than deep academic knowledge of only a few aspects. In the 21 st Century
challenges of public service are multifaceted and complex. This requires building
coalitions, creating specialised knowledge, less hierarchy, more collaboration, domain
expertise and flatter professional structures. In this regard, both specialist and
generalist approach of civil servants have their merits and demerits:
Adopting Specialist Approach:
• In a developing economy specialists should be right at the top in the line authority
rather than in a staff-cell attached to the generalist line authority. The advantage is
the government would become less bureaucratic, more programme-oriented and
committed.
• The generalist administrator usually does not develop a sustained interest in any
particular field of activity. Even in exceptional cases when he does develop such an
interest, this becomes infructuous because by the time he has learnt the job he is
transferred to some other job.
• The management and the administration (such as that of PSUs) should be well-
trained in the know-how of the enterprises that they manage. The emphasis should
shift from mere theoretical, bureaucratic control to a self-contained knowledgeable
set-up.
• It is said that generalists are prisoners of rules, regulations and precedents and
there is too much stress on continuity, caution, and red tape.
• Understanding amongst experts (i.e. people with similar domain expertise) is better
and it may result in conducive work environment and better policy.
Adopting Generalists Approach:
• Generalists Administration is politics in action. As one rises up the hierarchy, there
is less hands-on job and more management of resources. It vests in a bureaucrat a
successively larger responsibility for enforcing the general point of view of the
government.
• Top management job requires a general understanding. It requires a view of the
whole.
Student Notes:
Student Notes:
5. A healthy working relationship between Ministers and civil servants is critical for
good governance in a democracy, yet civil service must remain free from political
considerations. Comment.
Approach:
This question seeks to examine the relationship between the political and the
permanent executive. A civil servant is expected to be politically neutral and non-
partisan in his/her dealings. The answer must elaborate on how the concept of political
neutrality is being eroded over time and how it should be restored.
Answer:
Criticality of relationship between Civil Servant and Political Executive
• In a democracy, power vests with the people. This power is exercised through its
elected representatives who have the mandate to govern them for a specific
period.
• The civil services by virtue of its knowledge, experience and understanding of
public affairs assist the elected representatives in formulating policy and are
responsible for implementing these policies.
• Therefore, a healthy working relationship between Ministers and civil servants is
critical for good governance.
• Once a law is framed or rules and regulations are approved, they apply to everyone,
whether a member of the political executive or of the permanent civil service.
• A civil servant is required to implement the orders of government without bias,
with honesty and without fear or favour.
Civil service neutrality
• Unfortunately, the concept of civil service neutrality no longer holds good. Changes
in governments particularly at the state level often lead to wholesale transfer of
civil servants.
• Political neutrality is no longer the accepted norm with many civil servants getting
identified, rightly or wrongly, with a particular political dispensation.
Student Notes:
• There is a perception that officers have to cultivate and seek patronage from
politicians for obtaining suitable positions even in the Union Government. As a
result, the civil services in public perception are often seen as increasingly
politicized.
• The political neutrality and impartiality of the civil services needs to be preserved.
The onus for this lies equally on the political executive and civil servants.
• Ministers must uphold the political impartiality of the civil service and not ask the
civil servants to act in any way which would conflict with the duties and
responsibilities of the civil servant.
• In a nutshell arbitrary and illegal interference by ministers or MPs or MLAs in the
work delegated to the bureaucracy is neither desirable nor beneficial for an
efficient government.
QUASI-JUDICIAL BODIES
Content:
Quasi-Judicial Bodies in India
Emergence of Quasi-Judicial Bodies in India
Quasi-judicial Action vs Administrative Action
Examples of Quasi Judicial Bodies
Tribunals
Evolution of Tribunals
Judicial Review of Cases Handled by Tribunals
Categories of Tribunals in India
National Consumer Disputes Redressal Commission
Lok Adalats
Origin of Lok Adalats
Permanent Lok Adalats
Jurisdiction of Lok Adalats
Powers of Lok Adalats
Advantages of Lok Adalats
National Human Rights Commission
Composition
Functions
Appointment
Removal of a Member of the Commission
Working of NHRC
Strength of NHRC
Weaknesses of the Commission
Central Vigilance Commission
Composition
Removal
Functions
Working of CVC
Central Bureau of Investigation
Composition of CBI
Organization of CBI
Functions of CBI
CBI as ‘Caged Parrot’ and steps to make it free
om
l.c
ai
gm
y@
ar
yn
nk
ve
A quasi-judicial body has also been defined as “an organ of government, other than a court or
legislature, which affects the rights of private parties through adjudication or rule-making.
Thus, a quasi-judicial body is one, which exercises a discretion that is essentially judicial in
character, but is not a tribunal within the judicial branch of the government and is not a court
exercising judicial power in the constitutional sense.
Though the distinction between quasi-judicial and administrative action has become blurred,
l.c
yet it does not mean that there is no distinction between the two.
ai
gm
y@
In A.K. Kraipak vs. Union of India, the Court was of the view that in order to determine whether
ar
the action of the administrative authority is quasi-judicial or administrative, one has to see the
yn
nk
nature of power conferred, to whom power is given, the framework within which power is
ve
Thus broadly speaking, acts, which are required to be done on the subjective satisfaction of the
administrative authority, are called ‘administrative’ acts, while acts, which are required to be
done on objective satisfaction of the administrative authority, can be termed as quasi-judicial
acts.
Administrative decisions, which are founded on pre-determined standards, are called objective
decisions whereas decisions which involve a choice, as there is no fixed standard to be applied
are so called subjective decisions. The former is quasi-judicial decision, while the latter is
administrative decision. In case of administrative decision there is no legal obligation, upon the
person charged with the duty of reaching the decision, to consider and weigh submissions and
arguments or to collate any evidence. The grounds upon which he acts, and the means which
he takes to inform himself before acting are left entirely to his discretion.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
1 www.visionias.in ©Vision IAS
Student Notes:
However, the Supreme Court observed, “It is well settled that the old distinction between a
judicial act and administrative act has withered away and we have been liberated from the
pestilent incantation of administrative action.”
Tribunals
There are a large number of laws, which charge the Executive with adjudicatory functions, and
the authorities so charged are, in the strict scene, administrative tribunals. Administrative
tribunals are agencies created by specific enactments. Administrative adjudication is a term
synonymously used with administrative decision-making.
om
l.c
• The tribunal consists of members and heads that may not possess any background of
law.
• Tribunals do not rely on uniform precedence and hence may lead to arbitrary and
inconsistent decisions.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
2 www.visionias.in ©Vision IAS
Student Notes:
Evolution of Tribunals
The growth of Administrative Tribunals, both in developed and developing countries, has been
a significant phenomenon of the twentieth century. In India also, innumerable Tribunals have
been set up from time to time, both at the center and the states, covering various areas of
activities like trade, industry, banking, taxation etc. The question of establishment of
Administrative Tribunals to provide speedy and inexpensive relief to the government
employees, relating to grievances on recruitment and other conditions of service, had been
under the consideration of Government of India for a long time. Due to their heavy
preoccupation, long pending and backlog of cases, costs involved and time factors, Judicial
Courts could not offer the much-needed remedy to government servants, in their disputes with
the government. A need arose to set up an institution, which would help in dispensing prompt
relief to harassed employees, who perceive a sense of injustice and lack of fair play in dealing
with their service grievances. This would motivate the employees better and raise their morale,
which in turn would increase their productivity.
The First ARC and a Committee under J.C. Shah recommended the establishment of an
independent tribunal to exclusively deal with service matters. The same was validated by the
Supreme Court in 1980.
The Constitution (through 42ndAmendment Act, Article 323-A) empowered the Parliament to
provide for adjudication or trial by Administrative Tribunals of disputes and complaints with
respect to recruitment and constitution of service of persons appointed to public service and
posts in connection with the affairs of the union or of any state or local or other authority
within the territory of India or under the control of the government or any corporation, owned
or controlled by the government.
In pursuance of the provisions of Article 323-A of the Constitution, the Administrative Tribunals
Bill was introduced in Lok Sabha on 29thJanuary 1985 and received the assent of the President
om
In S. P. Sampath Kumar case, the Supreme Court directed the carrying out of certain measures
nk
with a view to ensuring the functioning of the Administrative Tribunals along constitutionally
ve
sound principles. In an amendment the jurisdiction of the Supreme Court under article 32 was
restored. Constitutional validity of the Act was finally upheld in S. P. Sampath Kumar case
subject to certain amendments relating to the form and content of the Administrative Tribunals.
The suggested amendments were carried out by another amending Act. Thus the
Administrative Tribunals became an effective and real substitute for the High Courts.
However, in 1997, a seven-Judge Bench of the Supreme Court in L. Chandra Kumar held that
clause 2 (d) of article 323A and clause 3(d) of article 323B, to the extent they empower
Parliament to exclude the jurisdiction of the High Courts and the Supreme Court under articles
226/227 and 32 of the Constitution, are unconstitutional. The Court held that the jurisdiction
conferred upon the High Courts under articles 226/227 and upon the Supreme Court under
article 32 of the Constitution is part of the inviolable basic structure of our Constitution.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
3 www.visionias.in ©Vision IAS
Student Notes:
All decisions of the Administrative Tribunals are subject to scrutiny before a Division Bench of
the High Court within whose jurisdiction the concerned Tribunal falls. As a result, orders of the
Administrative Tribunals are being routinely appealed against in High Courts, whereas this was
not the position prior to the L. Chandra Kumar’s case. On 18th March 2006, the Administrative
Tribunals (Amendment) Bill, 2006 was introduced in Rajya Sabha to amend the Act by
incorporating therein, inter alia, provisions empowering the Central Government to abolish
Administrative Tribunals, and for appeal to High Court to bring the Act in line with L. Chandra
Kumar. The Department-related Parliamentary Standing Committee on Personnel, Public
Grievances, Law and Justice in its 17th Report said that the appeal to High Court is unnecessary,
and if a statutory appeal is to be provided it should lie to the Supreme Court only. The Law
Commission also took up the topic suo-moto and agreed with the opinion put forward by the
Parliamentary Standing Committee.
The Consumer Protection Act was passed in 1986 to protect the interests of the consumers.
gm
y@
The objective of this law is to provide a simple, fast and inexpensive mechanism to the citizens
ar
to redress their grievances in specified cases. By spelling out the rights and remedies of the
yn
consumers in a market so far dominated by organized manufacturers and traders of goods and
nk
ve
providers of various types of services, the Act makes the dictum, caveat emptor (‘buyer
beware’) a thing of the past.
The Act envisages a three-tier quasi-judicial machinery at the National, State and District
levels:
i. National Consumer Disputes Redressal Commission - known as “National Commission”;
ii. State Consumer Disputes Redressal Commission known as “State Commission”; and
iii. District Consumer Disputes Redressal Forum - known as “District Forum”.
The Act also provides for establishment of Consumer Protection Councils at the Union, State
and District levels, whose main objectives are to promote and protect the rights of consumers.
Each District Forum is headed by a person who is, has been or is eligible to be appointed as a
District Judge and each State Commission is headed by a person who is or has been a Judge of a
High Court.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
4 www.visionias.in ©Vision IAS
Student Notes:
The provisions of this Act cover ‘goods’ as well as ‘services’. The goods are those, which are
manufactured or produced and sold to consumers through wholesalers and retailers. The
services are in the nature of transport, telephone, electricity, housing, banking, insurance,
medical treatment, etc.
A written complaint can be filed before the District Consumer Forum for pecuniary value of up
to Rs. twenty lakh, State Commission for value upto Rs. one crore and the National Commission
for value above Rs. one crore, in respect of defects in goods or deficiency in service. The service
can be of any description and the illustrations given above are only indicative. However, no
complaint can be filed for alleged deficiency in any service that is rendered free of charge or
under a contract of personal service.
The remedy under the Consumer Protection Act is an alternative in addition to that already
available to the aggrieved persons/consumers by way of civil suit. In the
complaint/appeal/petition submitted under the Act, a consumer is not required to pay any
court fee, but only a nominal fee.
Consumer Fora proceedings are summary in nature. The endeavor is made to grant relief to the
aggrieved consumer as quickly as possible, keeping in mind the provisions of the Act which lay
down time schedule for disposal of cases.
If a consumer is not satisfied by the decision of a District Forum, he can appeal to the State
Commission. Against the order of the State Commission, a consumer can come to the National
Commission.
In order to help achieve the objects of the Consumer Protection Act, the National Commission
has also been conferred with the power of administrative control over all the State
Commissions by calling for periodical returns regarding the institution, disposal and pendency
of cases.
om
l.c
• Prior service of copies of documents produced by one party to the opposite parties,
yn
•
nk
• Generally over-seeing the functioning of the State Commissions and the District Forums
to ensure that the objects and purposes of the Act are best served, without interfering
with their quasi-judicial freedom.
Lok Adalats
The concept of Lok Adalat (People’s Court) is an innovative Indian contribution to the world
jurisprudence. The introduction of Lok Adalats added a new chapter to the justice dispensation
system of this country and succeeded in providing a supplementary forum to the victims for
satisfactory settlement of their disputes. This system is based on Gandhian principles. It is one
of the components of ADR (Alternative Dispute Resolution) systems. In ancient times, the
disputes were referred to “Panchayats”, which were established at village level. Panchayats
resolved the disputes through arbitration. It has proved to be a very effective alternative to
litigation. This concept of settlement of disputes through mediation, negotiation or arbitration
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
5 www.visionias.in ©Vision IAS
Student Notes:
is conceptualized and institutionalized in the philosophy of Lok Adalat. It involves people who
are directly or indirectly affected by dispute resolution.
The concept of Lok Adalats was pushed back into oblivion in last few centuries before
independence and particularly during the British regime. Now, this concept has, once again,
been rejuvenated. It has become very popular and familiar amongst litigants. This is the system,
which has deep roots in Indian legal history and its close allegiance to the culture and
perception of justice in Indian ethos. Experience has shown that it is one of the very efficient
and important ADR mechanisms and most suited to the Indian environment, culture and
societal interests. Camps of Lok Adalats were started initially in Gujarat in March 1982 and now
it has been extended throughout the Country.
The evolution of this movement was a part of the strategy to relieve heavy burden on the
Courts with pending cases and to give relief to the litigants. The first Lok Adalat was held on
March 14, 1982 at Junagarh in Gujarat. Maharashtra commenced the Lok Nyayalaya in 1984.
The advent of Legal Services Authorities Act, 1987 gave a statutory status to Lok Adalats,
pursuant to the constitutional mandate in Article 39-A of the Constitution of India. It contains
various provisions for settlement of disputes through Lok Adalat. This Act mandates
constitution of legal services authorities to provide free and competent legal services to the
weaker sections of the society and to ensure that opportunities for securing justice are not
denied to any citizen by reason of economic or other disabilities. It also mandates organization
of Lok Adalats to secure that the operation of the legal system promotes justice on the basis of
equal opportunity. When statutory recognition had been given to Lok Adalat, it was specifically
provided that the award passed by the Lok Adalat formulating the terms of compromise will
have the force of decree of a court, which can be executed as a civil court decree. The evolution
of movement called Lok Adalat was a part of the strategy to relieve heavy burden on the Courts
om
with pending cases and to give relief to the litigants who were in a queue to get justice. It
l.c
ai
The parties are not allowed to be represented by the lawyers and encouraged to interact with
ar
yn
judge who helps in arriving at amicable settlement. No fee is paid by the parties. Strict rule of
nk
Civil Procedural Court and evidence is not applied. Decision is by informal sitting and binding on
ve
the parties and no appeal lies against the order of the Lok Adalat.
In 2002, the Parliament brought about certain amendments to the Legal Services Authorities
Act, 1987 to institutionalize the Lok Adalats by making them a permanent body to settle the
disputes related to public utility services. The Central or State Authorities may, by notification,
establish Permanent Lok Adalats at any Permanent Lok Adalats, for determining issues in
connection to Public Utility Services.
• Transport service
• Postal, telegraph or telephone services
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
6 www.visionias.in ©Vision IAS
Student Notes:
Permanent Lok Adalats have the same powers that are vested in the Lok Adalats.
A Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement
between the parties to a dispute in respect of:
The Lok Adalat can compromise and settle even criminal cases, which are compoundable under
the relevant laws.
•
l.c
•
y@
•
nk
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
7 www.visionias.in ©Vision IAS
Student Notes:
3. All proceedings before a Lok Adalat shall be deemed to be judicial proceedings within
the meaning of Sections 193, 219 and 228 of IPC.
4. Every Lok Adalat shall be deemed to be a Civil Court for the purpose of Sec 195 and
Chapter XXVI of Cr.P.C.
National Human Rights Commission is designed to protect human rights, defined as “rights
relating to life, liberty, equality and dignity of individual guaranteed by Constitution or
embodied in International Covenant and which are enforceable by Courts in India”.
Composition
• NHRC consists of a Chairperson and four members, all of them being full-time
om
members. The Chairperson should be a retired Chief Justice of India and members
l.c
should be serving or retired judges of the Supreme Court, a serving or retired Chief
ai
gm
Justice of a High Court and two persons having knowledge or practical experience with
y@
• Apart from these full-time members, the Commission also has four ex-officio members,
yn
nk
the Chairpersons of National Commission for Minorities, National Commission for SCs &
ve
Functions
• Proactively or reactively inquire into violations of human rights or negligence in the
prevention of such violation by a public servant
• By leave of the court, to intervene in court proceeding relating to human rights
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
8 www.visionias.in ©Vision IAS
Student Notes:
• Visit any jail or other institution under the control of the State Government, where
persons are detained or lodged for purposes of treatment, reformation or protection,
for study of the living conditions of the inmates and make recommendations
• Review the Constitutional or legal safeguards in force for the protection of human
rights and recommend measures for their effective implementation
• Review the factors, including acts of terrorism that inhibit the enjoyment of human
rights and recommend appropriate remedial measures
• Study treaties and other international instruments on human rights and make
recommendations for their effective implementation
• Undertake and promote research in the field of human rights
• Engage in human rights education among various sections of society and promote
awareness of the safeguards available for the protection of these rights through
publications, the media, seminars and other available means
• Encourage the efforts of NGOs and institutions working in the field of human rights
• Such other function as it may consider it necessary for the protection of human rights.
Appointment
The Chairperson and members of the NHRC are appointed by the President of India, on the
recommendation of a Committee consisting of:
Section 5 of the Protection of Human Rights Act describes the procedures and ground for the
y@
removal of the any member of the Commission. . The President may remove the Chairperson or
ar
yn
• Is adjudged an insolvent; or
• Engages during his term of office in any paid employment outside the duties of his
office; or
• Is unfit to continue in office by reason of infirmity of mind or body; or
• Is of unsound mind and stands so declared by a competent court; or
• Is convicted and sentenced to imprisonment for an offence, which in the opinion of the
President involves moral turpitude.
Additionally, the Chairperson or any other Member of the Commission shall only be removed
from his office by order of the President on the ground of proved misbehavior or incapacity.
However, in these cases, the President has to refer the matter to the Supreme Court for an
inquiry. If the Supreme Court, after the inquiry, upholds the cause of removal and advises so,
then the President can remove the Chairman or a member.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
9 www.visionias.in ©Vision IAS
Student Notes:
Working of NHRC
The Commission has all powers of a Civil Court. It has its own investigating staff for investigation
into complaints of Human Rights violations. It is open to it to utilize services of any officer or
investigation agency of the Central Government or any State Government. The Commission
while inquiring into complaints of violations of human rights may call for information or report
from the Central Government or any State Government, or any other authority or organization
subordinate thereto within such time as may be specified by it.
The Commission is not empowered to inquire into any matter after the expiry of one year from
the date on which the act constituting violation of human rights is alleged to have been
committed. In other words, it can look into a matter within one year of its occurrence.
The Commission may take any of following steps upon completion of an enquiry:
Strength of NHRC
1. The selection procedure of the members of NHRC is the main factor of its strength. The
om
well as opposition party and both the Houses of Parliament. Also, the composition of
gm
NHRC is such that it involves Legislative, Executive, Judiciary, academicians and NGOs.
y@
This gives the Commission a broad vision to deal with the issues of Human Rights.
ar
yn
Government. The Commission is free to make its own budget and spend it according to
its own planning. The draft of the proposed budget is placed before both the Houses of
Parliament and after the approval of the budget, the Government, without making any
amendment, has to provide finances to the Commission.
3. The Commission has the power to conduct suo-moto inquiry into the complaints of
Human Rights violations.
4. Easy accessibility to the Commission has made it one of the most popular organizations.
Anyone can approach NHRC through telephone, letter, application, mobile phone and
the Internet. All the documents, reports, newsletters, speeches, etc. of the Commission
are also available on this website. The status of the complaint too can be known
through its website. The popularity and trust on NHRC is quite evident from the fact
that while it had registered only 496 complaints in 1993-94, in 2004-05 the total
number of cases were 74,4019.
5. NHRC has advised the government a number of times on the issues of Human Rights.
Be it the cases of custodial deaths or suicide by the farmers or health issues or POTA,
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
10 www.visionias.in ©Vision IAS
Student Notes:
child marriage, trafficking of women and children etc., the government has been taking
suggestions from NHRC.
6. NHRC, in a true democratic fashion, has worked immensely to create awareness among
public on Human Rights issues through seminars, workshops, lectures, literature, NGOs’
participation, universities’ collaborations, etc.
7. The Commission has extended its sphere from time to time. Support for right to
information, health care issues, disables’ rights, HIV/AIDS patients’ rights etc. are some
of the issues where NHRC has worked successfully.
In 2004, the Government of India authorized the CVC as the “Designated Agency” to receive
om
written complaints for disclosure on any allegation of corruption or misuse of office and
l.c
ai
recommend appropriate action. The CVC is conceived to be the apex vigilance institution, free
gm
of control from any executive authority, monitoring all vigilance activity under the Central
y@
Composition
The CVC is composed of a Chairperson (Central Vigilance Commissioner) and not more than two
members. The President appoints them upon the recommendation of a committee comprising
of:
They hold office for a term of four years or until they attain the age of sixty-five years,
whichever is earlier. They are not eligible for further employment under the Central or a State
Government upon expiry of their term.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
11 www.visionias.in ©Vision IAS
Student Notes:
The appointment of P.J. Thomas as CVC in 2011 was quashed by the Supreme Court since he
was an accused in Kerala Palmolein case under Prevention of Corruption Act.
Removal
The President can remove any member from office under the following circumstances:
1. If he is adjudged insolvent; or
2. If he has been convicted of an offence which (in the opinion of the Central
Government) involves a moral turpitude; or
3. If he engages, during his term of office, in any paid employment outside the duties of
his office; or
4. If he is (in the opinion of the President), unfit to continue in office by reason of infirmity
of mind or body; or
5. If he has acquired such financial or other interest as is likely to affect prejudicially his
official functions.
In addition, the President can remove any member on the grounds of proved misbehavior or
incapacity. However, in this case, the President has to refer the matter to the Supreme Court for
an enquiry. If, after the enquiry, the Supreme Court upholds the cause of removal and advises
so, the President can remove him. He is deemed to be guilty of misbehavior if:
Functions
l.c
ai
gm
•
ar
Corruption Act, 1988; or offence under CrPC for certain categories of public servants
and to give directions to the DSPE for purpose of discharging this responsibility;
• To give directions and to review the progress of investigations conducted by the DSPE
into offences alleged to have been committed under the Prevention of Corruption Act;
• As a fallout of the Vineet Narain case, the Supreme Court of India ruled that the
Director of the CBI (and Director of Enforcement) should be appointed on the
recommendations of a Committee headed by the Central Vigilance Commissioner, the
Home Secretary and the Secretary in the Department of Personnel as members. The
Committee should also take the opinion of the incumbent Director CBI before
forwarding their recommendations to the Appointments Committee of the Cabinet.
• The Committee concerned with the appointment of the Director of CBI is also
empowered to recommend, after consultation with the Director (CBI), appointment of
officers to the posts of the level of SP and above in DSPE.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
12 www.visionias.in ©Vision IAS
Student Notes:
• The Committee concerned with the appointment of the Director of Enforcement is also
empowered to recommend, after consultation with the Director of Enforcement,
appointment of officers to the posts of the level of Deputy Director and above in the
Directorate of Enforcement.
Working of CVC
om
l.c
The CVC conducts its proceedings at New Delhi. It has the powers of a Civil Court and is
ai
gm
empowered to regulate its own procedure. It may call for information or report from the
y@
Central Government or its authorities so as to enable it to exercise general supervision over the
ar
The CVC, after receiving the report of the inquiry undertaken by an agency, advises the Central
Government or its authorities upon further course of action. The Central Government or its
authorities shall consider such advise and take appropriate action. If it does not agree with the
advise of the CVC, it shall communicate the reasons for the same to the CVC.
Annual report of performance of CVC has to be presented to the President. The President
places this report before each House of the Parliament.
All Ministries/Departments in the Union Government have a Chief Vigilance Officer (CVO) who
heads the Vigilance Division of the organization concerned, assisting and advising the Secretary
or Head of Office in all matters pertaining to vigilance. He also provides a link between his
organization and the Central Vigilance Commission on the one hand and his organization and
the Central Bureau of Investigation on the other.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
13 www.visionias.in ©Vision IAS
Student Notes:
The CBI is not a statutory body. It derives its powers from the Delhi Special Police Establishment
Act, 1946.The CBI is the main investigating agency of the Central Government. It plays an
important role in the prevention of corruption and maintaining integrity in administration. It
works under the overall superintendence of Central Vigilance Commission in matters related to
the Prevention of Corruption Act, 1988.
Composition of CBI
The Director of CBI has been provided security of two-year tenure in office by the CVC Act, 2003
(Vineet Narain Case). The CVC Act also provides the mechanism for the selection of the Director
of CBI and other officers of the rank of SP and above in the CBI. The Director of the CBI is
om
l.c
the Government of India in-charge of the Ministry of Home Affairs and the Secretary
ar
Organization of CBI
1. Anti-Corruption Division
2. Economic Offences Division
3. Special Crimes Division
4. Policy and International Police Cooperation Division
5. Administration Division
6. Directorate of Prosecution
7. Central Forensic Science Laboratory
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
14 www.visionias.in ©Vision IAS
Student Notes:
Functions of CBI
The CBI is a multidisciplinary investigation agency of the Government of India and undertakes
investigation of corruption-related cases, economic offences and cases of conventional crime. It
normally confines its activities in the anti-corruption field to offences committed by the
employees of the Central Government and Union Territories and their public sector
undertakings. It takes up investigation of conventional crimes like murder, kidnapping, rape etc.,
on reference from the state governments or when directed by the Supreme Court/High Courts.
The CBI acts as the “National Central Bureau” of Interpol in India. The Interpol Wing of the CBI
coordinates requests for investigation-related activities originating from Indian law
enforcement agencies and the member countries of the Interpol.
The SC raised questions on the CBI's independence while hearing the coalgate scam case, called
gm
y@
it a "caged parrot speaking in its master's voice". The SC had then asked the Centre to make the
ar
CBI impartial and said it needs to be ensured that the CBI functions free of all external
yn
pressures.
nk
ve
In response to this, the Centre filed an affidavit stating following measures it will adopt to
ensure the autonomy of the CBI:
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
15 www.visionias.in ©Vision IAS
Student Notes:
The Commission consists of a Chief Information Commissioner and not more than ten
Information Commissioners. They are appointed by the President upon the recommendation of
a committee comprising:
They should be people of eminence in public life with wide knowledge and experience in law,
science and technology, social service, management, journalism, mass media or administration
and governance. They should not be a Member of Parliament or Member of the Legislature of
any State or Union Territory. They should not hold any other office of profit or connected with
any political party or carrying any business or pursuing any profession.
The members of CIC hold office for a term of five years or until they attain the age of sixty-five
ai
gm
years, whichever is earlier. They are not eligible for reappointment. The Information
y@
Commissioner is eligible for appointment as Chief Information Commissioner but cannot hold
ar
office for more than a total of five years including his term as Information Commissioner.
yn
nk
ve
The President can remove any member from office under the following circumstances:
1. If he is adjudged insolvent; or
2. If he has been convicted of an offence which (in the opinion of the Central
Government) involves a moral turpitude; or
3. If he engages, during his term of office, in any paid employment outside the duties of
his office; or
4. If he is (in the opinion of the President), unfit to continue in office by reason of infirmity
of mind or body; or
5. If he has acquired such financial or other interest as is likely to affect prejudicially his
official functions.
In addition, the President can remove any member on the grounds of proved misbehavior or
incapacity. However, in this case, the President has to refer the matter to the Supreme Court for
an enquiry. If, after the enquiry, Supreme Court upholds the cause of removal and advises so,
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
16 www.visionias.in ©Vision IAS
Student Notes:
• Seeking an annual report from the public authority on compliance with this law
ar
applicant
ve
The State Information Commission performs similar functions with respect to offices, financial
institutions, public sector undertakings, etc. which fall under the concerned State Government.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
17 www.visionias.in ©Vision IAS
Student Notes:
Planning Commission
The Planning Commission was established in March 1950 by an executive resolution of the
Government of India, (i.e. Union Cabinet) on the recommendation of the Advisory Planning
Board constituted in 1946, under the chairmanship of K C Neogi. Thus, the Planning
Commission is neither a constitutional body nor a statutory body. In other words, it is a non-
constitutional or extra-constitutional body (i.e. not created by the Constitution) and a non-
statutory body (not created by an act of Parliament). In India, it is the supreme organ of
planning for social and economic development.
Functions
The Allocation of Business Rules have assigned the following matters (in addition to the above)
l.c
ii. Specific programmes for area development notified from time to time
yn
Earlier, the National Informatics Centre was also under the Planning Commission. Later, it was
brought under the Ministry of Information Technology. The Unique Identification Authority of
India (UIDAI) has been constituted in January, 2009 as an attached office under aegis of the
Planning Commission. With the transfer of National Rainfed Area Authority (NRAA) from
Ministry of Agriculture to the Planning Commission, all matters relating to the NRAA will
henceforth be looked after by the Planning Commission. It should be noted that the Planning
Commission is only a staff agency—an advisory body and has no executive responsibility. It is
not responsible for taking and implementing decisions. This responsibility rests with the Central
and State governments.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
18 www.visionias.in ©Vision IAS
Student Notes:
Composition
The following points can be noted in context of the composition (membership) of the Planning
Commission:
i. The Prime Minister of India has been the chairman of the Commission. He presides
over the meetings of the Commission.
ii. The Commission has a Deputy Chairman. He is the de facto executive head (i.e.,
full-time functional head) of the Commission. He is responsible for the formulation
and submission of the draft Five-Year Plan to the Central Cabinet. He is appointed
by the Central Cabinet for a fixed tenure and enjoys the rank of a Cabinet Minister.
Though he is not a member of Cabinet, he is invited to attend all its meeting
(without a right to vote).
iii. Some Central Ministers are appointed as part-time members of the Commission. In
any case, the Finance Minister and planning minister are the ex-officio (by virtue of)
members of the Commission.
iv. The Commission has four to seven full-time expert members. They enjoy the rank
of a Minister of State.
v. The Commission has a Member-Secretary. He is usually a senior member of IAS.
The state governments are not represented in the Commission in any way. Thus, the Planning
Commission is wholly a centre-constituted body.
Internal Organization
1. Technical Divisions
2. Housekeeping Branches
om
3. Programme Advisors
l.c
ai
gm
Technical Divisions: The technical divisions are the major functional units of Planning
y@
Commission. They are mainly concerned with plan formulation, plan monitoring and plan
ar
yn
evaluation. These fall under two broad categories, that is, general divisions (concerned with
nk
aspects of the entire economy) and subject divisions (concerned with specified fields of
ve
development).
Housekeeping Branches: The Planning Commission has the following housekeeping branches:
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
19 www.visionias.in ©Vision IAS
Student Notes:
the Planning Commission. The PEO is headed by a Director/Chief who is assisted by Joint
Directors, Deputy Directors, Assistant Directors and other staff. The PEO has seven regional
offices at Chennai, Hyderabad, Mumbai, Lucknow, Chandigarh, Jaipur and Kolkata. Each regional
evaluation office of PEO is headed by a Deputy Director. The PEO undertakes an assessment of
the implementation of development programmes and plans as contained in Five-Year Plans to
provide, from time to time, feedback to the Planning Commission and executive agencies. It
also provides technical advice to state evaluation organizations.
om
l.c
ai
gm
y@
ar
yn
nk
ve
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
20 www.visionias.in ©Vision IAS
VISIONIAS ™
152 www.visionias.in
www.visionias.wordpress.com
Content:
1 Introduction Revised Value Addition Material
Background
Need
2 Regulation in India
Evolution of Regulation in India
Types of Regulation in India
Categories of Regulators in India
Statutory Independent Regulatory Agencies
Self Regulatory Authorities
Issues Related to Regulation in India
Independence
Accountability
Transparency
Important Regulatory Bodies
Securities and Exchange Board of India
Insurance Regulatory and Development Authority
Competition Commission of India
Telecom Regulatory Authority of India (TRAI)
Interaction between Policy Makers and Regulators and its Current Status
Participation of Stakeholders in the Regulatory Process
Competition Authority vs. Sector Regulators
Consumer Redress
Regulatory Coherence
Future Course of Action
3 Fiscal Sector Legislative Reforms Commission (FSLRC)
Comments Relating to Independence of Regulatory Bodies
Recommendation with Regards to Accountability
4 Recommendations of 2nd ARC
5 Single Super-Regulator vs. Multiple Regulators
Arguments in favor of Unified Supervision
Arguments against Unified Regulation
6 Enforcement Directorate
Origin and Evolution
Functions
1] Introduction
Regulation may be broadly understood as an effort by the state to address social risk, market
failure or equity concerns through rule-based direction of social and individual action.
Regulation is an attempt to control or influence private behaviour in the desired direction by
imposing costs on or proscribing undesirable behaviour. Since regulation can have important
consequences for economic efficiency and private incentives, it is usually justified only under
special conditions like prevention of market failures, restriction or removal of anti-competitive
practices, and promotion of public interest.
Background
The role of the state in economic and social life has dramatically changed from being the main
provider of social and economic services to being a rule-maker and regulator. The new mode of
the state with its structures and relationships is characterised by an increase in the regulatory
functions and responsibilities. These changes have paved the way to the emergence of a state
increasingly defined by the volume, diversity and complexity of its regulatory institutions. This
state is known as the regulatory state.
Contrary to what was expected, liberalisation and privatisation during the 1980s and 1990s
have led to a vast growth in the state’s regulatory obligations. In India, the regulatory role of
government stems from the provisions of the Constitution, which empower the Union and
State Legislatures to make laws on various subjects. The Constitution empowers the State to
impose reasonable restrictions on the exercise of various rights conferred by Article 19 in the
interest of public order, sovereignty and integrity of India, protecting the interest of the general
public, or in the interest of decency, morality etc. Consequently, there is a plethora of laws and
rules, which seek to regulate the activities of individuals and groups of individuals. The
Constitution as well as the laws enacted by Parliament have established the institutions and
mechanisms to enforce the laws and rules. Article 53(1) of the Constitution regulates the
exercise of the executive powers of the Union. Further, Article 53(3) authorizes the Parliament
om
Need
ai
gm
y@
Market failure is a condition in which the market mechanism fails to allocate resources
efficiently to maximize social welfare. Market failures occur in the provision of public goods, in
case of natural monopolies or asymmetric information, and in the presence of externalities.
• A natural monopoly occurs when an entire market is more efficiently served by one
firm than by two or more firms due to increasing returns to scale. Natural monopolies
enjoy scale benefits that protect them from competition; entry by other firms tend to
lead to inefficient production i.e. the average cost of output is much higher with entry
by multiple firms than with the existence of just one firm. In such cases, regulation may
be necessary to protect consumer interests. In doing so, regulation might bar the entry
of new firms into the sector and protect the monopoly status of the incumbent
operator. In India, the transmission and distribution of electricity is still natural
monopolies.
• Asymmetric information is a situation where one party to a transaction knows more
about the product than another. This prevents the market mechanism from achieving
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
1 www.visionias.in ©Vision IAS
Student Notes:
• Support Pricing: Government offering to buy wheat or rice from farmers at a price
l.c
ai
• Public Distribution System: Supply of food grains at a price which is lower than the
y@
market price
ar
yn
• Free Distribution: Distribution of piped water and free power to agriculture, which is a
nk
2] Regulation in India
Evolution of Regulation in India
Post-independence, India experimented with a “socialist mixed economy model" with the state
retaining control over the commanding heights of the economy – heavy industries and utilities.
While private sector activity was allowed, the government tried to control it through a web of
controls such as licensing and quotas in regard to intermediate goods, imports and outputs.
Such controls were complemented by high tariff walls. Thus, the government was not only a
producer and regulator of strategic and important goods and services; it also exerted direct
control over the output, and sometimes even associated prices, of private sector activity. Given
that electoral pressures exerted by various interest groups did affect regulatory actions by the
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
2 www.visionias.in ©Vision IAS
Student Notes:
government, such regulation can hardly be labeled as “independent”. After 1985, the Indian
economy embarked on a process of domestic reform, which involved the following elements –
delicensing of industries and abolition of output quotas or bounds on outputs of firms,
permission for private entry into sectors, which were hitherto the monopoly of the
government, and liberalisation of quotas and tariffs on capital good imports.
From 1991 onwards, liberalisation of the external sector meant that tariff reductions were
extended to almost the entire spectrum of merchandise trade and conditions for foreign
investment were simplified and liberalised. The process of domestic reform and external
liberalisation is still ongoing. However, the producer profile in various sectors has undergone a
significant change with private firms co-existing with government firms in many sectors, which
were previously government monopolies (e.g. electricity, telecommunications). The consensus
among decision makers has been that independent regulation is required in such sectors to
guarantee a level playing field. As a result, independent regulators have been constituted in
various sectors, starting with electricity and telecommunications, and the number is still on the
rise. Regulation in India can be mapped under three broad categories: economic regulation,
regulation in the public interest and environmental regulation.
Types of Regulation in India
Regulation in India can be mapped under three broad categories: economic regulation,
regulation in the public interest and environmental regulation.
(i) Economic Regulation
Economic regulation aims at preventing or tackling market failure. This is achieved with rules
that proscribe and punish market distorting behaviour. In the Indian context include The
Electricity Act of 2003, which allows State regulators to fix tariffs for power consumption, thus
preventing suppliers from taking advantage of natural monopolies.
(ii) Regulation in the Public Interest
om
This covers areas where industries are failing to meet a standard or uphold something of public
l.c
importance. This is different from market failure. A classic case is of health and safety, where
ai
gm
firms can fall short in protecting employees or the general public from harm. The Bureau of
y@
Indian Standards (BIS) created by the Bureau of Indian Standards Act, 1986 has been setting
ar
quality and safety standards for various products, some of which are mandatory. Such
yn
nk
regulations are necessary due to low level of consumer awareness, skewed income
ve
distribution and lack of capacity of majority of the population to pay for essential services,
essential needs such as food security. This calls for support pricing of food grains and
encourages farmers to maintain a higher acreage under food grain cultivation, thereby
enhancing food security.
(iii) Environmental Regulation
Environmental regulation covers actions to protect the environment from harm. A healthy
environment is desirable not just on aesthetic grounds, but because environmental degradation
imposes costs on land, labour and resources that have important consequences for economic
development. In India, environment protection has been given constitutional status. The
Directive Principles of State Policy state that protecting and improving the environment is the
duty of the State as well as citizens of the country. The Government of India has enacted
various laws to protect the environment through the Environment (Protection) Act, 1986 as
the umbrella legislation. Ministry of Environment and Forests is the nodal agency for
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
3 www.visionias.in ©Vision IAS
Student Notes:
environmental legislation. However, several states have also enacted their own legislation
besides the major ones enacted by the Central Ministry. The State Pollution Control Board
(SPCB) established in each state, is responsible for implementing these legislations as well as
issuing rules and regulations prescribing the standards for a clean environment. The activities of
SPCBs are coordinated by the Central Pollution Control Board (CPCB).
Categories of Regulators in India
There are primarily two types of regulatory agencies:
Statutory Independent Regulatory Agencies
Regulation by government through its own Departments or Agencies directly under its control
has always existed. The last century has seen the emergence of a special category of regulatory
systems – the Independent Statutory Regulating Agencies. These agencies differ from the
conventional regulating system as they are separated from the executive wing of the
government and enjoy a certain degree of autonomy. The concept of independent regulations
took birth in USA. The basic premise of the establishment of these agencies being that a market
based economy needs to be regulated in order to ensure a level playing field to all and also to
safeguard the larger public and national interest. Other factors, which favoured the creation of
independent regulators were:
i. Increasing complexities and the advancement of technologies required for handling
of issues by experts;
ii. Public interest is best served by insulating decision-making in certain issues, from
political interference.
In India, with the initiation of the process of economic liberalization in the early 90s,
government withdrew from many activities, which hitherto were monopolized by it. The entry
of corporate sector necessitated certain measures to boost the investor competence and to
safeguard public interest. One such measure was setting up of independent regulators. In
addition, the traditional departmental structure of government was not best suited to play the
om
These Authorities are created under different laws but they are self-regulatory in nature. The
ar
yn
functions of Self-Regulatory Bodies may include: (i) issues of professional education (ii) matters
nk
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
4 www.visionias.in ©Vision IAS
Student Notes:
allocations and sanctioning of staff appointments as well as the need for the former to report to
the latter. Again on the lines of what has been mentioned above, there is no uniformity in the
independence and funding of different regulators. While the Finance Ministry has been
proactive in providing secure funding and resultant independence to the regulators reporting to
it, this principle has been largely ignored by many other ministries.
Accountability
Independence must go hand in hand with accountability. Along with independence, all
regulators need to be accountable. Appropriate mechanisms are required to make independent
regulatory agencies accountable. Accountability is of two types: political and legal. In India,
regulatory bodies in general have the following features that are relevant to their
accountability:
i. They have been constituted on the basis of statute, which also lays down terms of
appointment and removal of Board Members.
ii. Their decisions can be appealed against before a specified appellant authority in most
cases. Naturally, they are also subject to the writ jurisdictions of High Courts and the
Supreme Court.
iii. The accounts of regulator are audited by the Comptroller and Auditor General.
iv. They are legally bound to prepare an annual report and submit to the Government,
which in turn lays it before each House of Parliament.
v. The respective statutes have mandated that regulators shall ensure transparency while
exercising their powers and discharging their functions.
vi. The Chairman, Members and officers of regulators are deemed to be public servants
within the meaning of Section 21 of the Indian Penal Code (IPC).
Parliamentary supervision seems to be the ideal form of political accountability as
accountability to the line ministry can often be associated with pressure being exerted on the
regulator to favour utilities being operated by the ministry. Similarly, vested interest groups
often find it easier to effectively pressurise the regulator through the line ministry rather than
om
through the Parliament. Therefore, replacing the line ministry’s control by Parliamentary
l.c
supervision across the board is necessary. This provision was also put forward by 2nd ARC, as
ai
gm
The regulator’s actions are questioned only when there is an impending crisis or a serious
yn
debate in the country. In fact, in most such cases it is the line ministry that is questioned, and
nk
ve
not the regulator. Such misperception enables the line ministry to interfere in the functioning of
the regulatory body.
As mentioned earlier, legal accountability allows review of a regulator’s specific decisions. It is
important to ensure that the review process does not create a second layer of regulation, as
experienced in the telecom sector. In the telecom sector, the role of the appellate tribunal,
Telecom Disputes Settlement and Appellate Tribunal (TDSAT), is quite wide. The TDSAT and not
the TRAI has been empowered to settle disputes. This division of labour has adversely affected
the performance of the telecom regulator as any issue can be presented as a dispute.
Nevertheless, there are some benefits- judicial review is considered important in guarding
against decisions by a regulatory agency, which falls outside its statutory mandate or fail to
follow established administrative procedures. TDSAT has taken decisions in certain cases where
TRAI has seemingly not followed due process. Appellate powers are also not uniform across
sectors. Unlike TDSAT, the Securities Appellate Tribunal (SAT) can only entertain appeals against
the decisions of the capital market regulator, Securities & Exchange Board of India (SEBI).
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
5 www.visionias.in ©Vision IAS
Student Notes:
Transparency
It is important to have a transparent regulatory process. The regulatory process must
incorporate some crucial steps to ensure transparency. For example, stakeholders must be
made aware of the regulatory process and should be given opportunities to present their views
freely. In certain cases, regulatory legislation in India has made provisions to guarantee a
transparent regulatory process. For example, in the electricity and telecom sectors, it has been
mandated that regulators should ensure transparency while exercising their powers and
discharging functions. In the case of Tariff Authority for Major ports (TAMP), no specific
provisions regarding transparency exist in the legislation. However, TAMP has attempted to
introduce transparency through guidelines. No provision in regard to transparency exists in the
Competition Act, but a provision does exist in the general governance principles expounded by
the government. Furthermore, the Right to Information (RTI) Act empowers citizens to seek
information on any matter from any government department or undertaking.
• Inspect the books of accounts and call for periodical returns from recognized stock
y@
exchanges.
ar
• Compel certain companies to list their shares in one or more stock exchanges.
ve
• Levy fees and other charges on the intermediaries for performing its functions.
• Grant license to any person for the purpose of dealing in certain areas.
• Delegate powers exercisable by it.
• Prosecute and judge directly the violation of certain provisions of the companies
Act.
• Power to impose monetary penalties.
(b) An Appraisal
Successful cases of grievance redressal by SEBI have been rising rapidly. However, a survey
shows that most of the investors find the redresser ineffective. Moreover, SEBI is not able to do
much about ‘fly by night’ or ‘sign-board’ companies who vanish after collecting huge money.
SEBI has been too busy in framing rules and regulation giving rise to complex and cumbersome
framework, which leaves scope for discretionary interpretation. It failed to punish those who
caused abnormal fluctuations in the market. Due to this, small investors are losing confidence in
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
6 www.visionias.in ©Vision IAS
Student Notes:
investing. The autonomy of SEBI has been compromised as it, more or less, functions as a
branch of the Union Finance Ministry.
Insurance Regulatory and Development Authority
Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory
body, which regulates and develops the insurance industry in India. It was constituted by
Insurance Regulatory and Development Authority Act, 1999.
(a) Powers and functions
• Issue to the applicant a certificate of registration and suspend or cancel such
registration;
• Protection of the interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of insurance claim,
surrender value of policy and other terms and conditions of contracts of insurance;
• Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;
• Promoting efficiency in the conduct of insurance business;
• Calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries
and other organizations connected with the insurance business;
• Control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee;
• Regulating investment of funds by insurance companies;
• Adjudication of disputes between insurers and intermediaries or insurance
intermediaries.
Competition Commission of India
Competition Commission of India is a body of the Government of India responsible for
om
l.c
enforcing the Competition Act, 2002 throughout India and to prevent activities that have an
ai
gm
adverse effect on competition in India. The Competition Act, 2002, as amended by the
y@
Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The
ar
regulates combinations (acquisition, acquiring of control and Merger and acquisition), which
nk
ve
causes or are likely to cause an appreciable adverse effect on competition within India.
(a) Function and Responsibilities
• Make the markets work for the benefit and welfare of consumers.
• Ensure fair and healthy competition in economic activities in the country for faster and
inclusive growth and development of economy.
• Implement competition policies with an aim to effectuate the most efficient utilization
of economic resources.
• Develop and nurture effective relations and interactions with sectoral regulators to
ensure smooth alignment of sectoral regulatory laws in tandem with the competition
law.
• Effectively carry out competition advocacy and spread the information on benefits of
competition among all stakeholders to establish and nurture competition culture in
Indian economy.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
7 www.visionias.in ©Vision IAS
Student Notes:
two is not desirable and proper interaction between them becomes very important.
l.c
ai
gm
At the same time, it is equally important to ensure that the regulator’s domain is not
y@
encroached upon by the government in the name of achieving policy objectives. This calls for
ar
creating a clear distinction between policy and regulation, which is often missing in India. The
yn
nk
government has not made a policy decision to clearly specify the role of sector regulatory
ve
bodies, the degree of independence these should have, their accountability and so on. As a
result, when the need arises, the concerned ministry drafts a Bill as per its convenience to
change regulatory mandates. The resulting insecurity implies that regulators often work as an
extension to the office of the ministry. Lack of interaction of the regulator with the policy maker
resulting in confusion regarding respective domains coupled with inadequate empowerment
has made regulators ineffective. To cite a case, the Department of Telecommunications (DoT)
announced certain proposals (on Access Deficit Charges, one India call rate and inter-
connection usage charges) to restructure the tariff regime in telecommunications, considering
these to be policy issues. However, the sector regulator, TRAI, objected to these proposals. The
manner of consultations between the RBI and the Ministry of Finance is a good model: the RBI
holds consultations with the latter on a regular basis, at formal and informal levels, without
compromising its autonomy.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
8 www.visionias.in ©Vision IAS
Student Notes:
regulator) are required. These complement each other. The difference between the two forms
ai
of intervention in the market process lies in their nature. A regulator tells the firms what these
gm
y@
have to do. A regulator examines issues of technology, cost and process in the industry
ar
regulated by it. Competition Authority, on the contrary, tells the firms what they should not do
yn
i.e. price fixing, predatory pricing, cartels, discriminatory treatment etc. The role of the
nk
ve
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
9 www.visionias.in ©Vision IAS
Student Notes:
redressal provisions. However, over the years, because of factors like inadequate budgetary
allocation and lack of autonomy the MRTPC (the predecessor of CCI governed by MRTPA) has
not been very effective in providing redress and consequently pending cases have kept piling
up. The CCI is expected to serve consumers better in terms of redress. In addition to the
above, some sector regulators such as telecom, electricity and insurance also have redressal
mechanisms: generic complaint redress by TRAI, telephone adalats (courts), grievance redressal
mechanisms of State Electricity Commissions, the consumer grievance redress cell of the
Insurance Regulatory Development Authority (IRDA), insurance ombudsman, banking
ombudsman etc.
Regulatory Coherence
A robust overarching regulatory philosophy/framework is needed for coordinated development
of the economy and its constituent sectors. However, the evolution of regulatory institutions in
India is not guided by a common philosophy. Political constraints and government preferences
seem to have dominated the reform agenda.
More than twenty years of independent regulation in India have been characterized by the
government’s inability to create and follow a cogent and coherent approach to independent
regulation. At the state level, Bureau of Industrial Promotion (BIP) works as a nodal agency to
provide regulatory coherence, i.e. it is the nodal agency for expediting clearance of private
sector projects. Being a nodal agency, it interacts with all the regulatory bodies at the state level
and tries to ensure coherence among them. But in practice it has not been very effective.
Overall regulatory coherence may be improved by making the following institutional
arrangements:
• Sector specific apex bodies need to be established at the Centre. These bodies should
be complemented by a well-endowed economy wide regulatory and competition
authority in each state.
• An appellate tribunal for all appeals against sector regulators needs to be established. If
om
the workload increases in any one sector, these can be hived off.
l.c
in legal terms so that there is no conflict between them and impugned parties do not
y@
• Multi-stakeholder participation should be the way forward, which can effectively take
yn
nk
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
10 www.visionias.in ©Vision IAS
Student Notes:
and is fraught with regulatory gaps, overlaps, inconsistencies and arbitrage. To address this, the
l.c
FSLRC submitted its report to the Ministry of Finance on March 22, 2013, containing an analysis
ai
gm
of the current regulatory architecture and a draft Indian Financial Code to replace bulk of the
y@
With respect to regulators, FSLRC stresses the need for both independence and accountability.
nk
The draft Indian Financial Code adopts ownership neutrality, whereby the regulatory and
ve
supervisory treatment of a financial firm is the same, whether it is a private or public company.
The draft Code seeks to move away from the current sector-wise regulation to a system, where
the RBI regulates the banking and payments system and a Unified Financial Agency subsumes
existing regulators like SEBI, IRDA, PFRDA and FMC, to regulate the rest of the financial markets.
Regulators will have an empowered board with a precise selection-cum-search process for
appointment of members. The members of a regulatory board can be divided into four
categories: the chairperson, executive members, non-executive members and Government
nominees. In addition, there is a general framework for establishing advisory councils to
support the board. All regulatory agencies will be funded completely by fees charged to the
financial system. Finally, the FSLRC envisages a unified Financial Sector Appellate Tribunal
(FSAT), subsuming the existing Securities Appellate Tribunal (SAT), to hear all appeals in finance.
The table below provides an outline of the FSLRC’s proposed regulatory architecture.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
11 www.visionias.in ©Vision IAS
Student Notes:
• The regulator is able to set up a specialized workforce that has superior technical
ar
yn
knowledge.
nk
•
ve
• This is assisted by modified human resource and other processes, when compared with the
functioning of mainstream government departments.
• With such knowledge, and close observation of the industry, an independent regulator is
able to move rapidly in modifying regulations, thus giving malleability to laws.
• The presence of independent regulators improves legal certainty.
Recommendation with Regards to Accountability
• Avoid conflicting objectives: This problem is heightened when there are conflicts of
interest. It is, hence, desirable to structure regulatory bodies with clarity of purpose and
the absence of conflicting objectives.
• A well structured rule-making process: To ensure that the benefits of the regulations out
weigh the costs, for every proposed regulation there should be:
o A compact statement of the objects and reasons of the subordinate legislation;
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
12 www.visionias.in ©Vision IAS
Student Notes:
o
A description of the market outcome, which is an inefficient one (“a market failure” in
Economics parlance);
o Demonstration that solving this market failure is within the objectives of the
regulator;
o Clear and precise exposition of the proposed intervention;
o Demonstration that the proposed intervention is within the powers of the regulator;
o Demonstration that the proposed intervention would address the identified market
failure;
o Demonstration that the costs to society through complying with the intervention are
outweighed by the gains to society from addressing the market failure.
• The Rule of Law: A crucial element of accountability and independence of regulators is
three core principles of the rule of law:
o Laws should be known before an action takes place.
o Laws should be applied uniformly across similar situations.
o Every application of law should provide the private party with the information for
application of the law, the reasoning by which the conclusion was arrived at, and a
mechanism for appeal.
• Reporting: Once the objectives of an agency have been defined, it is meaningful to ask the
agency to report – e.g. in the Annual Report – the extent to which it has achieved these
objectives. Each agency should report on how it has fared on pursuing its desired
outcomes, and at what cost.
earnest. The reasons include – (a) the sheer number of such regulations; (b)
l.c
outdated regulations that continue to remain on the statute book; (c) the tendency
ai
gm
to over-legislate, as a result the legislation becomes an end in itself; and (d) the
y@
necessary to have a detailed scrutiny of all laws and regulations – Union, State and
yn
nk
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
13 www.visionias.in ©Vision IAS
Student Notes:
iii. Self-regulation is the best form of regulation: In the field of taxation, there has
been a shift from departmental assessment to greater reliance on self-assessment.
This holds good for Union taxes such as Income tax, State taxes like the VAT and
local taxes like the property taxes. This principle of voluntary compliance can be
extended to other fields like building bye-laws, public health regulations etc. To
start with, this principle can straightaway be applied to cases where
permission/license is required to be renewed periodically.
iv. Regulatory procedures to be simple, transparent and citizen friendly: There
should be systemic reforms so as to minimize the scope for corruption. These
include simplifying transactions, using IT, promoting transparency, reducing
discretion, effective supervision etc.
v. Involving citizens’ groups, professional organizations in the regulation activities.
The burden of the enforcement machinery can be shared by associating citizens’
groups as well as professional organizations to certify compliance and report
violations of the regulations to the concerned authorities. Recently, in Delhi the
procedure for grant of building permissions has been simplified and registered
architects have been authorized to certify the building plans of houses. This has
helped in reducing the work of the civic agencies and reduced corruption as well.
This principle could be also extended to other spheres of activities.
In the 13th report of 2nd ARC, following steps have been proposed to improve the working of
independent regulators:
a. Setting up of a Regulator should be preceded by a detailed review to decide whether
the policy regime in the concerned sector is such that the Regulator would be better
placed to deliver the policy objectives of the department concerned.
b. In addition to the statutory framework, which underpins the interface between the
government and the regulator, each Ministry/Department should evolve a
‘Management Statement’ outlining the objectives and roles of each regulator and the
om
guidelines governing their interaction with the government. This would guide both the
l.c
ai
c. There is need for greater uniformity in the terms of appointment, tenure and removal
y@
of various regulatory authorities considering these have been set up with broadly
ar
yn
similar objectives and functions and should enjoy the same degree of autonomy. The
nk
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
14 www.visionias.in ©Vision IAS
Student Notes:
regulators could set different regulations for the same activity for different players.
l.c
Unified supervision could thus help achieve competitive neutrality. (IRDA and SEBI
ai
gm
collision on ULIPs)
y@
• The unified approach allows for the development of regulatory arrangements that are
ar
yn
impeded by ‘turf wars’ or a desire to ‘pass the buck’ or where respective enabling
ve
statutes leave doubts about their jurisdiction, these problems can be more easily
limited and controlled in a unified organization. (example NSEL crisis)
• Unified supervision could generate economies of scale as a larger organization permits
finer specialization of labor and a more intensive utilization of inputs and unification
may permit cost savings on the basis of shared infrastructure, administration, and
support systems. Unification may also permit the acquisition of information
technologies, which become cost-effective only beyond a certain scale of operations
and can avoid wasteful duplication of research and information-gathering efforts.
• A final argument in favor of unification is that it improves the accountability of
regulation. Under a system of multiple regulatory agencies, it may be more difficult to
hold regulators to account for their performance against their statutory objectives, for
the costs of regulation, for their disciplinary policies, and for regulatory failures.
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
15 www.visionias.in ©Vision IAS
Student Notes:
• The public could tend to assume that all creditors of institutions supervised by a given
ai
gm
supervisor will receive equal protection, generating ‘moral hazard’. Hence depositors
y@
and perhaps other creditors of all other financial institutions supervised by the same
ar
yn
be the unpredictability of the change process itself. The first risk is that opening the
issue for discussion will set in place a chain of events that will lead to the creation of a
unified agency, whether or not it is appropriate to create. The second risk is legislation
in that the creation of a unified agency will generally require new legislation, but this
creates the possibility that the process will be exploited by special interests. The third
risk is a possible reduction in regulating capacity through the loss of key personnel.
Another risk is that the management process itself will go off track.
6] Enforcement Directorate
Directorate of Enforcement is a multi-disciplinary organization mandated with the task of
enforcing the provisions of two special fiscal laws – Foreign Exchange Management Act, 1999
(FEMA) and Prevention of Money Laundering Act, 2002 (PMLA). The Directorate of
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
16 www.visionias.in ©Vision IAS
Student Notes:
Enforcement, with its Headquarters at New Delhi is headed by the Director of Enforcement.
There are five Regional offices at Mumbai, Chennai, Chandigarh, Kolkata and Delhi headed by
Special Directors of Enforcement. There are zonal offices headed by the Joint Directors and sub-
zonal offices headed by Deputy Directors.
Besides directly recruiting personnel, the Directorate also draws officers from different
Investigating Agencies, viz., Customs & Central Excise, Income Tax, Police, etc. on deputation.
Origin and Evolution
The origin of this Directorate goes back to 1st May, 1956, when an ‘Enforcement Unit’ was
formed, in Department of Economic Affairs, for handling Exchange Control Laws violations
under Foreign Exchange Regulation Act, 1947 (FERA ’47). This Unit was headed by a Legal
Service Officer, as Director of Enforcement with Headquarter at New Delhi and two branches at
Bombay and Calcutta.
In the year 1957, this Unit was renamed as ‘Enforcement Directorate’, and another branch was
opened at Madras. The administrative control of the Directorate was transferred from
Department of Economic Affairs to Department of Revenue in 1960. With the passage of time,
FERA’47 was repealed and replaced by FERA, 1973. For a short period of 04 years (1973 –
1977), the Directorate remained under the administrative jurisdiction of Department of
Personnel & Administrative Reforms.
With the onset of the process of economic liberalization, FERA, 1973, which was a regulatory
law was repealed and in its place, effective 1st June, 2000, a new law – Foreign Exchange
Management Act, 1999 (FEMA) came into operation. Further, in tune with the International
Anti Money Laundering regime, Prevention of Money Laundering Act, 2002 (PMLA) was
enacted, and entrusted for its enforcement to the Directorate.
Carved in the role of a multi-dimensional organization, the Directorate enforces two laws:
i. FEMA, a Civil Law having quasi-judicial powers, for investigating suspected
om
contraventions of the Exchange Control Laws and Regulations with the powers to
l.c
ii. PMLA, a Criminal Law, whereby the Officers are empowered to conduct enquiries to
y@
Functions
ve
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
17 www.visionias.in ©Vision IAS
Student Notes:
om
l.c
ai
gm
y@
ar
yn
nk
ve
Rajinder Nagar: 1/8-B, 2nd Floor, Apsara Arcade, Near Gate 6, Karol Bagh Metro, Delhi
Mukherjee Nagar: 103, 1st Floor, B/1-2, Ansal Building, Behind UCO Bank, Delhi-9
09650617807, 09968029039, 09717162595
18 www.visionias.in ©Vision IAS