EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

THE HINDU
6 EDITORIAL DELHI

THURSDAY, AUGUST 26, 2021

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Negotiating the new global climate policy

Reducing per-person emissions to the global average as a first step to national net-zero requires a human rights frame
sions converging to a common own urbanisation and lifestyle. not endangering planetary life
point will allow those who have al- support systems as stress on popu-
Income and quotas ready used more than their fair
share of the carbon space a larger
Ideas and implications
New ideas such as ‘climate justice’,
lation and national emissions sug-
gests. Third, with different civilisa-
SC lays bare the limits of using economic share of the remaining space than coming from India have three stra- tional values, consumption of the

GETTY IMAGES/ISTOCKPHOTO
countries such as India which tegic implications. First, a focus on middle class in developing coun-
criterion to determine reservation eligibility Mukul Sanwal need the remaining carbon space drivers and patterns of natural re- tries is less wasteful than in the

T
he Supreme Court’s ruling that economic crite- to grow to comparable levels of source, not just anthropogenic first phase of urbanisation. These
rion alone cannot be used to classify a member of well-being. emissions, highlights that as socio-economic trends are not

T
a Backward Class as belonging to the ‘creamy he policy significance of the against measuring emissions captured in the models based on
recent report (https:// Per capita emissions when considering solutions, the natural sciences designed for
layer’ adds an interesting nuance to the jurisprudence
bit.ly/3Dcm8zb) of the Unit- The policy significance of the im- causes become important, in par- countries whose emissions have
of affirmative action. There was a time when backward- ed Nations (UN) Intergovernmen- balance becomes clear when per- ticular, the shift of the human pop- peaked with questionable global
ness was primarily related to the inadequate social and tal Panel on Climate Change (IPCC) capita emissions are compared. flexibility in the new climate ulation from rural to urban areas. policy relevance.
educational advancement of a group. Ever since the is that reaching net zero alone is The world’s per capita greenhouse policy. Second, the IPCC report has reiter-
Court, in Indra Sawhney (1992), introduced the concept not enough as it is the cumulative gas emissions are 6.55 tonnes of ated that impacts such as a rise in For a new policy objective
of ‘creamy layer’ — a term describing the well-off among emissions up to net zero which de- carbon dioxide. India’s per capita Emission sources sea level, variability of rainfall and It took 25 years for the ‘Paris
the Backward Classes — and declared that this section termine the temperature that is emission at 1.96 tonnes is less than The reframing should stress ‘es- temperature increases will not be Agreement’ to reverse the defining
reached, and that a global policy one-third; emissions of the United sential’ emissions to justify the reversible for some time even after feature of the ‘Framework Con-
should be denied reservation benefits, the original idea
which considers only current States, Canada and Australia are flexibility and the need. Infras- emissions fall. The adverse effects vention’, the division of countries
of including groups based on social backwardness was emissions will not limit global more than two-a-half times; Ger- tructure, or construction, essen- of climate change, or adaptation, into ‘annexes’, while providing for
matched by a parallel exercise to exclude the more ad- warming and its adverse effects. many, the United Kingdom and tial for urbanisation and quality of are no longer a local but a global a ‘common cause’ instead of com-
vanced among them. This position has crystallised into France are above, and China, at living is responsible for two-fifths concern. Third, consequently, mitments. India’s proposal sup-
law. Many support the formulation that once caste is ac- Restricting well-being 6.4 tonnes, is just below the global of global carbon dioxide emissions multilateral cooperation will shift ports this evolution. Moving away
cepted as a basis for determining backwardness, there For 30 years, climate negotiations average. Accepting ‘net zero’ emis- from fuel combustion and 25% of from common rules monitoring from regulating emissions to re-
is nothing wrong in excluding the affluent among the have struggled with a frame that sions by 2050 effectively prevents emissions overall. These emis- emissions based on international cognising ecological limits makes
created an imbalance between India’s urbanisation and shift of sions arise from energy intensive environmental law to common the subsidiary bodies for scientific
eligible castes. The Union government has unreserved-
countries sharing global carbon the rural population into the mid- cement production and half of the goals of human well-being as a un- advice and implementation review
ly accepted the ‘creamy layer’ rule, and formulated cri- space, the only limited natural re- dle class. steel produced which is used in iversal human right based on a established to ratchet-up commit-
teria for identifying those who fall under the category. source. Development depleted India is rightly objecting to the construction, both having no sub- policy consensus. ments redundant. Sharing pros-
The proponents of economic criteria feel that genuine carbon space causing the climate obfuscation, as the Objective of stitutes. Shifting from environmental perity should be the objective of
social justice means reservation benefits should be res- problem and developing countries the Climate Treaty is “stabilization The varying levels of per capita damage and its implications for new intergovernmental mechan-
tricted to the poorer among the backward; while sec- are being pressured to limit their of greenhouse gas concentra- emissions are accounted for by ex- well-being to comparable levels of isms, with the involvement of the
tions championing Backward Class assertion disfavour use of the remaining space as the tions”. By contributing over 60% pressways and the urban boom in well-being within global ecological private sector, for example, sup-
solution. At the G20 Climate and of global cumulative emissions, the U.S. and Europe between 1950 limits provides a very different porting solar energy, joint re-
any dilution of the social basis for reservation.
Energy Ministerial meeting in July, with just one-fourth of the global and 2000, before China began its conceptual frame to understand- search in new crop varieties and
The Court’s latest judgment in a Haryana case cor- India proposed that major econo- population, North America and infrastructure push, leading to ing climate change and the nego- exchanging experiences on infras-
rects a grave error by the State. It has struck down a not- mies bring down their own per Europe are responsible for nearly per-capita material use that is four tiations. First, there is a need for a tructure viability. We now know
ification fixing an annual income of ₹6 lakh as the sole capita emissions to the global aver- 970 billion tonnes of carbon emis- times that of China. The U.S. first debate on what society values and that climate change is not just an
criterion to identify whether a family belongs to the age by 2030. sions. recognised the implications of its whether societal priorities or mar- environmental or sustainable de-
creamy layer. It was contrary to Indra Sawhney that had Reframing negotiations in terms Whereas, the world’s remaining way of life preparing for the Stock- ket exchange and pricing mechan- velopment concern involving
spoken of different criteria, including being the chil- of bringing per-person emissions, carbon budget — the total amount holm Summit in 1972, but then isms determine what is to be va- trade-offs. It requires a civilisation-
or human well-being, as the essen- we can emit to have a chance of shaped the global agenda in terms lued, produced, and consumed. al transformation in what we va-
dren of high-ranking constitutional functionaries, em-
tial first step highlights that merely limiting warming to 1.5° C — is only of current emissions which were Second, with consumption of the lue, the way we live, and how we
ployees of a certain rank in the Union and State govern- achieving net zero of current emis- 400 gigatonnes of carbon dioxide, going to grow in developing coun- urban middle class now more im- interact with one another.
ments, those affluent enough to employ others, or with sions by 2050 — the proposal of and the U.S. alone has contributed tries as they urbanised, rather portant than production in terms
significant property and agricultural holdings and, of the G7 — restricts well-being and is this amount for its high standard than the scientifically correct sta- of GDP, it has become clear that Mukul Sanwal is a former civil servant,
course, an identified annual income. The Court has unacceptable as global policy. Va- of living. For a global consensus, bilisation of cumulative emissions, the rising prosperity of the poor negotiator and UN diplomat in the climate
found that the Haryana criterion based on income rying levels of per-capita emis- such countries will need some to draw attention away from its and its need for infrastructure is change secretariat
alone was contrary to its own law that specifies that the
creamy layer would be identified through social, eco-
nomic and other factors. The Constitution permitted
special provisions in favour of ‘socially and educational-
ly backward classes’ through the first Amendment, as
A Taliban outreach that needs correction
The overwhelming narrative to engage with the Taliban must change, which will lead to the budding of policy options
well as reservation in government employment for
‘backward classes’. Judicial discourse introduced a 50% ‘the good Taliban’, to create an en- capacity to begin and fruitfully en- for convergence amongst the par-
ceiling and the creamy layer concept as constitutional vironment conducive to negotiate gage with such elements and also ties if they seek to work together.
with them. The Taliban’s unleash- underestimates the capacities of Further, it is naive to believe that
limitations on reservation benefits. However, the 103rd
ing of war to secure power has put elements such as Inter-Services In- the other regional states would be
Constitution Amendment, by which 10% reservation an end to those arguments. The telligence and the Haqqani net- comfortable with Pakistan having
for the ‘economically weaker sections’ (EWS) has been claim that the Taliban shall have to work to disrupt such negotiations. complete control over the future
introduced, has significantly altered the affirmative ac- reform to secure international leg- Even China and Pakistan, which of Afghanistan. Taliban may itself
Chetan Rana
tion programme. With the current income ceiling being itimacy is exaggerated. The con- are deeply engaged with the Tali- seek greater autonomy from Ra-
₹8 lakh per annum for availing of both OBC and EWS clusion of an agreement with the ban, will be reluctant to complete- walpindi as its grip over Afghanis-

V
quotas, there is a strange and questionable balance bet- ery few, if any, might have U.S. while excluding the Afghan ly rely on them in the future. U.S. tan tightens.
been surprised when the government, and talks with China, President Joe Biden, while ad-
AFP

ween the OBC and EWS segments in terms of eligibility,

Taliban unleashed violence
even though the size of the respective quotas vary. to take over territories in Afghanis-
tan. What has surprised many is
Dissension in the ranks the pace at which the Taliban
pushed their lines and replaced
Crises in the Congress can be attributed to the Afghan state. The Doha peace
deal with the United States and
its leaders’ lack of ideological commitment China’s Foreign Minister Wang Yi’s
have already accorded the re- dressing the drawdown from Af- Then and now
quired legitimacy to the Taliban, ing their homes today will not be ghanistan based on the deal with The overwhelming narrative to en-
internationally. On the domestic returning to their homes anytime the Taliban, stated that he does gage with the Taliban reflects the
front, if the Taliban cared for legiti-
macy from the Afghan people they
soon, if at all. Historically India
has been one of the preferred re-
not trust them. Therefore, the
claim that India — so far a periph-
hegemony that men and realists
hold in security analysis. There is
would have contested elections in- fuges for Afghans beyond their im- eral party — can plan its Afghan a need to diversify the discourse,
stead of capturing territory mediate neighbourhood. First, na- policy or security in Kashmir this will automatically lead to the
through force. tions must see refugees as their based on Taliban assurances is not budding of new policy options in

W
ith their backs up against the wall and in a cri- warm welcome to a Talibani dele- responsibility rather than a bur- sound. As far as terrorism in Kash- Afghanistan. A policy that is igno-
sis, resilient organisations are expected to gation in Tianjin, in July, reflect the Long-term settlement den. This shall involve rapid pro- mir is concerned, professor Rajesh rant or unconcerned of its conse-
run a tight ship. But in politics, if the organi- diplomatic successes of the Tali- Several reports that have emerged cessing of visa applications and Rajagopalan rightly argues, we quences for women and minori-
ban at the international level. Al- over the last couple of months ensuring safe routes to commute. don’t have a Taliban problem but a ties is not worth pursuing.
sation lacks a strong glue, there are enough malcon-
most all regional stakeholders at have confirmed that violence and Second, there should be an effort Pakistan problem. The domestic One must remember that the
tents to weaken it from within. The Congress finds itself this point are engaging with the oppression are the Taliban’s mo- to develop a regional, and poten- efforts to reconcile differences Taliban’s rise in 2021 is not like its
in such a situation today. Beleaguered and limited to Taliban, openly or behind closed dus operandi. Women, as expect- tially an international, coalition to with the local Kashmiris shall go a rise in 1996. Mohammed Omar en-
power on its own in only three major States — Rajas- doors. The Special Envoy of the ed, have been hit the worst. Fe- address the needs of Afghan refu- longer way than relying on the joyed a certain level of popularity
than, Punjab and Chhattisgarh — the Congress should State of Qatar for Counterterro- male students and employees gees. An active policy to provide Taliban. amongst Afghans as he led the Ta-
have focused on utilising the period in power to provide rism and Mediation of Conflict Re- have been let off. News of the Tali- shelter, education, vaccination, Irrespective of that, we must re- liban to oust the warring Mujahi-
good governance and to inspire successes elsewhere. solution, Mutlaq bin Majed Al Qah- ban forcing women to marry its and employment opportunities in- member that a Pakistan-con- deens in 1996. In 2021, the median
tani, in June, confirmed India’s soldiers or else assaulting them stead of sending them to congest- trolled and a Taliban-led Islamic age of the Afghan population is
Since nothing succeeds like success, working together
outreach to the Taliban. Now that has increased. The already dwin- ed, unhygienic, and then ignored Emirate is against the interests of a 18.4 years. Most of them have
to achieve a functioning government is an imperative. the Afghan state has failed, the Ta- dling Afghan Sikh community is refugee camps is needed. The pol- Shia-dominated Iran. The pros- come up in a far more progressive
But far from backing the respective Chief Ministers to liban is the most powerful political leaving the country. The progress icy must look beyond an imme- pect of Afghanistan turning into a environment than the Taliban’s
the hilt, leaders in the Congress have tried to take on entity. But the Afghan people are made during the fragile peace in diate fix, and instead towards a breeding ground for terrorist out- rule. The resistance has already
the mantle of rebellion to varying degrees of success. In the most important stakeholders the last two decades has been un- long-term settlement strategy. fits is an issue for India but a bigger begun in Panjshir. Afghan citizens
Rajasthan, Sachin Pilot’s rebellion against Chief Minis- and India must resist engaging done in a matter of weeks. As the issue for Iran, the Central Asian will continue to resist. So must we.
ter Ashok Gehlot was managed last year, but no viable with the Taliban. struggle for power with and within Looking beyond the Taliban States, China, Russia and even Pa-
the Taliban gains momentum, eth- Many have argued that India must kistan. The Tehrik-i-Taliban Pakis- Chetan Rana is a PhD research scholar
compromise between the two has been reached yet. In
Issue of legitimacy nic divisions will accentuate, and negotiate with the Taliban. The ar- tan (TTP) (or the Pakistani Tali- (Diplomacy and Disarmament), Centre
Punjab, despite being an import after a stint in the BJP, Where is ‘the good Taliban’? In the the minorities will become more gument that India can engage with ban) is expected to strengthen if for International Politics, Organization
former cricketer Navjot Singh Sidhu managed to wrest past, leaders and analysts have and more vulnerable. certain segments of a heteroge- instability in Afghanistan conti- and Disarmament (CIPOD), Jawaharlal
the position of the Punjab Pradesh Congress Commit- used the terms ‘Taliban 2.0’, or Sadly, the Afghans who are leav- nous Taliban overestimates India’s nues. Therefore, there is an area Nehru University, New Delhi
tee president by mobilising enough discontent against
Chief Minister Amarinder Singh. Now chafing, Capt.
Amarinder’s allies have sought their utmost to under-
LETTERS TO THE EDITOR Letters emailed to letters@thehindu.co.in must carry the full postal address and the full name or the name with initials.

mine Mr. Sidhu’s leadership in another round of inter- To read more letters

necine strife. In Chhattisgarh, Health Minister T.S. Political feud court has to decide now who disparaging and crude announcing what it thinks by Navjot Singh Sidhu’s online, scan the QR code

Political rivalries have
Singh Deo’s claim that he was supposed to get the Chief
always existed, but there
Minister’s post as “promised” to him halfway into the was always some kind of
government’s tenure, has not yet been accepted by the civility. The political climate
party high command which, however, seems unwilling in the nation has
to back the incumbent, Bhupesh Baghel. deteriorated so much that a
In none of these instances can a claim be made that Union Minister can go to
the incumbent government’s performance has warrant- the extent of talking about
roughing up a Chief
ed a change. The rebellions, therefore, can be attribut-
Minister. The kind of
ed to the personal ambitions of three leaders and not language being used across
even to traditional factional politics related to ideologi- the political spectrum is
cal differences. There has been a lot of focus on the par- disgusting, with no hope of
ty’s national leadership and a concentration of power improvement. Hopefully
in the Nehru-Gandhi family, but the more pressing pro- this comment should not
is more culpable.
Bellur S. Dattatri,
Bengaluru
■ It is a bit over the top to be
calling this incident a
“murder of democracy” and
a “violation of constitutional
values”. The fact is that the
limits of decency in public
life are being violated. Those
in the political arena making
comments are conveniently
forgetting how journalists,
activists, student leaders and
personal comments against are catchy and flagship supporters, are perennial
the other has become schemes, but to no avail. subjects that require Paralympics
commonplace. A very poor Deepak Singhal, long-term action but are The Paralympics have
example is being set. Noida, Uttar Pradesh being used as a smokescreen started in Tokyo and one
Prabhu Raj R., to fight personal battles. If wishes the sportsmen and
Bengaluru ■ The National Monetisation the Congress is perceived to women luck. The Indian
Pipeline is not a wise move be incapable of solving its contingent deserves to be
Economic revival and betrays the NDA’s poor internal problems, its recent encouraged to the same level
The Centre is trying every record of governance since efforts at forging a united we did for the contingent
trick in the book rolling out 2014. The conversion of fixed Opposition front at the that has returned from
ambitious plans and schemes assets into cash cannot be a national level will come to Japan. Let us mainstream
to revive animal spirits of the permanent or even naught. Else, it can happily these sportspersons as it is
economy by way of long-term remedy. It will continue with its internecine still Citius, Altius, Fortius –
disinvestment of Bharat spell doom for the economy. battles and inconsequential Communis for them too.
Petroleum Corporation Manoharan Muthuswamy, Twitter wars. Satish Srinivasan,

blem it confronts is the absence of a clear ideological develop into a law and others are being harassed Limited, Air India and Chennai Kosaraju Chandramouli, Bengaluru

order problem, given the
commitment that draws leaders and cadre into closer
antecedents of the
coordination and camaraderie. By drawing from its his- protagonists.
tory as the party that led the country to freedom and Anthony Henriques,
helped work out a constitutional consensus and a liber- Mumbai
al democratic polity, besides its legacy since the 1990s
■ A Chief Minister
as the party that pushed for economic reforms and wel-
fare-based governance as the twin pedestals for pro- unwittingly seeks the help of
his aide when his mind goes
gress, the Congress can still lay a strong claim to power.
blank. And then springs into
For that it must have a committed cadre that is willing action when a former party
to selflessly work toward that aim rather than rely upon mate and now Union
self-seeking leaders professing vapid centrism, and for Minister has the temerity to
whom power is the overarching motive. cast aspersions for his
‘brainfade’! The people’s
and arrested on flimsy
grounds. That is a “murder
of democracy” and a
“violation of constitutional
values”.
Tilak Subramanian V.,
Kunjibettu, Udupi, Karnataka
■ The happenings are
distasteful, given the high
offices both leaders hold in a
democratic set-up. The
culture in our democratic
polity has reached an
all-time low, and making
others. We now have the Hyderabad
National Monetisation House in disorder CBSE review process
Pipeline. The Government In spite of being cast into a ■ When the Congress party The CBSE needs to look into
seems unable to fix pit, politically and at the found itself rudderless across student grievances quickly.
accountability as far as the national level, it seems the much of political India, it In my case, more than 10
babus entrusted with the job Indian National Congress has was Capt. Amarinder who days have passed since I
are concerned. The second is not learned any lessons and could keep the Congress ship submitted my Class 12 result
the lack of transparency and continues with its culture of steady. When the State is so grievance under the ‘CBSE
allegations of rigging. infighting, instead of seeking close to the Assembly polls, Dispute Settlement Type 3’
Customisation of bids to suit electoral successes (Page 1, the developments are sure to category. The delay has cost
a few cronies is “Amarinder Ministry reels demoralise the cadre. The me dear and I have lost a seat
unacceptable. Until the under Congress feud again”, high command is responsible in a renowned institution. It
culture of quid pro quo is August 25). Issues such as for the miasmic situation. is distressing.
obliterated, we are sure to curbing drugs and the Ayyasseri Raveendranath, Piyush Mahajan,
see the Government transport mafia, being raised Aranmula, Kerala Amritsar, Punjab

CM A ND-NDE
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THE HINDU
THURSDAY, AUGUST 26, 2021
DELHI
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Helping and hindering justice
Technology can be a game changer, but it is not a panacea for the ills plaguing courts
B.N. Srikrishna
In early June, while dealing with issues
arising in connection with the CoWIN
portal, the Supreme Court pointed out
some of the major impediments in the
delivery of vaccines to the people at
large. They were: inadequate digital lit-
eracy across the country, inadequate
digital penetration, and serious issues
of bandwidth and connectivity, particu-
larly in remote and inaccessible re-
gions. Despite the ambition of bringing
the benefits of vaccination to every hu-
man being in the country, the policy
was falling short of its goal because of
the inherent difficulties pointed out.
The premise in the observations of the
court was that relying solely on digital
transformation may not be a sound
idea. It could result in exclusion of a
large section of the population on ac-
count of the enumerated shortfalls.
Soon after this, the government said
that CoWIN registration would no lon-
ger be mandatory for vaccination.
Rising to the challenge
What the court observed about the de-
livery of vaccines through digital por-
tals alone is equally true of the delivery
of justice, which is as important as en-
suring the health of the people of the
country. Although the courts have risen
to the challenge posed by the COVID-19
pandemic, by using existing technology
at an unprecedented scale and speed, it
is proving to be an uphill task. In the
wake of the pandemic, courts began us-
ing facilities like e-filing in true earnest.
In May 2020, the Supreme Court also
introduced another innovation: a new
system of e-filing and artificial intelli-
gence-enabled referencing. This was
meant to herald efficiency, transparen-
cy and access to court delivery services
for every user.
The judiciary’s effort is not merely a
one-off action to tide over the pandem-
ic-created emergency. It also seeks to
harness technology in overcoming and
resolving the intractable ills that have
for long dogged the judiciary. These in-
clude the massive backlog of cases and
unacceptable levels of judicial vacan-
cies across the country at all levels.
It’s time for Industry 4.0
Adopting Industry 4.0 technologies would make
MSMEs more efficient and competitive
Sameer Mittal
& Milind Kumar Sharma
The term ‘Industry 4.0’ was coined
by the German government in 2011.
Additive manufacturing, Internet of
Things, Cyber Physical Systems, Aug-
mented Reality/Virtual Reality and
data analytics are some of the tech-
nologies associated with Industry
4.0. With the help of these technolo-
gies, the manufacturing industry will
be able to make data-driven deci-
sions. The reduced costs of electron-
ics like sensors, transmitters, and
cloud have allowed us to capture the
data produced during operational ac-
tivities. With the availability of ad-
vanced algorithms, this captured da-
ta can be analysed for
decision-making in real time. Thus,
Industry 4.0 integrated ‘data’ with
manufacturing and Information
Technology. To take advantage of da-
ta-driven decision-making, the go-
vernments of other countries also
coined their own industrial initiatives
like Industry 4.0. For example, the
U.S. calls it Smart Manufacturing,
China calls it Made in China 2025,
and India refers it to as Make in India
or Digital India.
The potential of MSMEs
Micro, Small and Medium Enterpris-
es (MSMEs) are expected to become
the backbone of India as the econo-
my grows larger. MSMEs form more
than 95% of the industries in India,
produce more than 45% of the total
manufacturing output and employ
more than 40% of the workforce. Ac-
cording to the Economic Survey
2020-21, over 6 crore MSMEs employ
more than 11 crore people and contri-
bute roughly 30% to the GDP and half
of the country’s export. MSMEs are
also ancillaries to larger enterprises,
leading to a seamless supply chain in-
tegration. As a result, making MSMEs
more efficient will be advantageous
for the whole economy.
However, MSMEs face challenges
when it comes to adopting new tech-
nologies such as Industry 4.0. First,
they lack awareness regarding Indus-
try 4.0 and its benefits. They consid-
er such technologies disruptive and
having the potential to demolish
their existing system. However, In-
dustry 4.0 believes in improving the
existing system. Scientific literature
CM
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ISTOCK PHOTO
Deep house cleaning is required in each
court and there also needs to be an out-
reach to all litigants in a cost-effective,
convenient and efficient manner. Per-
haps, this could be the opportune time
for making lasting changes that could
transform the creaking justice delivery
system in India. But an over-reliance on
technology is not a panacea to all the
ills plaguing the courts and if done
without forethought, could become
counterproductive.
Let us take the analogy of vaccina-
tion a little forward. Just like the rigo-
rous process of vaccine trials is a pre-re-
quisite to rolling out universal
vaccination programmes, after which
technology is incorporated across the
board, it would be imperative to resort
to performance audits and sandboxing
measures to carefully understand and
gauge the potential and risks. Evidence
shows that despite considerable invest-
ment to digitalise judicial infrastructure
and administration, beginning with
Phase 1 of the eCourts in 2007, the jud-
iciary’s performance during the pan-
demic period has left a lot to be desired.
In absolute terms, data show that pen-
dency reached an all-time high during
this year of virtual functioning of the
courts. In the case of district courts,
pendency rose sharply by 18.2% bet-
ween December 31, 2019 and Decem-
ber 31, 2020, according to the National
Judicial Data Grid. Across the 25 High
Courts, pendency witnessed its shar-
pest increase of 20.4% in 2019-
2020.This, of course, does not include
all those matters that were never filed.
The way forward
Given that the pandemic caught all in-
stitutions by surprise, there is bound to
be teething trouble. However, now that
we are in its second year, our next
course of action should be based on an
evidence-based rational approach. For
instance, we need to study and under-
stand why video conferencing in crimi-
nal cases has neither shortened trials
provides evidence of sensors and Wi-
Fi networks being integrated with old
machines like lathes and mills to im-
prove their performance. Second,
MSMEs will need to make major fi-
nancial investments to adopt Indus-
try 4.0. Investing in the right set of
technologies will need experts and
consultants as well. Third, for any
new technology to be adopted, an or-
ganisation requires a positive organi-
sational culture and the support of
people. MSMEs need to believe in the
advantages that Industry 4.0 technol-
ogies can offer. Fourth, the frame-
works and steps that can assist
MSMEs in adopting Industry 4.0
technologies have been missing. In
this regard, MSMEs need to under-
stand the data they are producing
from all their operational activities.
Based on such data, their readiness
can be evaluated. Finally, MSMEs
should develop their own vision of
Industry 4.0 technologies that they
want to adopt and identify the rele-
vant tools and practices they need for
such a tailored vision.
Transcending impediments
Though adoption of Industry 4.0
technologies by MSMEs requires
transcending a labyrinth of impedi-
ments, it will make them more com-
petitive as they will be able to offer
world-class quality products to cus-
tomers. Additionally, delivery tim-
ings and the flexibility to meet diffe-
rent needs will improve. As India
joined the group of top 50 countries
in the global innovation index for the
first time in 2020, it is imperative for
its MSMEs to embrace Industry 4.0
technologies without any hesitation.
Proper sensitisation of the Govern-
ment of India, higher education insti-
tutions, practitioners, entrepre-
neurs, industrial associations, trade
unions, venture capitalists, consul-
tants and research agencies would
help to speed up this task. This be-
comes imperative given the manufac-
turing challenges abruptly posed by
the COVID-19 pandemic when most
of the healthcare infrastructure in In-
dia is MSME-dependent.
Sameer Mittal is a Postdoctoral Fellow at
Tampere University, Finland, and Milind
Kumar Sharma is a Professor at M.B.M.
Engineering College, Jai Narain Vyas
University, Jodhpur
OPED 7
A way of diluting credit discipline
The RBI regulations on opening current accounts have operational and regulatory issues
nor reduced the number of people Sixth, transactions in an active cur-
awaiting trial. Similarly, we need to ad- rent account enables a bank to monitor
dress uneven digital access: while mo- a borrower’s account, however small.
bile phones are widely owned and The lack of such control was why large
used, access to the Internet remains li- development financial institutions of
mited to urban users. Lawyers in semi- yesteryear built up huge NPAs.
urban and rural districts find online G. Sreekumar Seventh, the regulation mandates
hearings challenging, mostly due to splitting working capital into loan and
connectivity issues and an unfamiliari- cash credit components across all
ty with this way of working. Some bank borrowers have gone to banks. Such a one-size-fits-all regula-
Just as doctors cannot be replaced by court demanding that it quash the Re- tion does not factor in the purpose of
chatbots, technology, no matter how serve Bank of India (RBI) circular dated the different facilities. A large company
advanced, cannot be a substitute for August 6, 2020 on opening current ac- might avail itself of loans in Mumbai,
judges of whom there remains a big counts. The RBI has since extended the but require current accounts with
shortfall. The India Justice Report 2020 date for compliance to October 31, 2021. another bank in Assam where it might
REUTERS
pegs vacancies in the High Court at 38% Diversion of funds is a major reason have a factory. Procrustean controls
(2018-19) and in lower courts at 22% for for large non-performing assets (NPAs). add costs with no concomitant benefits.
the same period. More than four out of Internal diversion is for non-priority There are other regulatory issues.
every 10 posts of High Court judges re- purposes such as limousines, plush of- First, it is more effective to base regula-
main vacant as on August 1 this year. fices, and vanity acquisition of compa- riodically transferred to the escrow ac- tion more on principles that focus on
If deployed with adequate data- nies. Funds can also be diverted to oth- count. outcomes than rules content with mere
based planning and safeguards, techno- er firms, owned or controlled by the If the borrowing is between ₹5 crore compliance. Rules are not flexible, do
logical tools can be a game changer. Ho- same group, friends or relatives. The and ₹50 crore, lending banks can open not provide for unforeseen circum-
wever, technology is not per se value- first is the result of misguided strategies current accounts. Non-lending banks stances, and can be easily circumvent-
neutral — that is, it is not immune to or muddled priorities. The second is an can open collection accounts. If bor- ed. Second, regulation needs to use
biases — and therefore, it must be pro- intention to defraud lenders, other rowing is below ₹5 crore, even non- more generic terms. Terms such as
perly evaluated for us to see whether it creditors, and non-controlling lending banks can open current ac- Working Capital Term Loan might
works to increase the power imbalance shareholders. counts. The working capital credit mean different things in different
between citizens and the state or Current accounts with non-lending should be bifurcated into loan and cash banks. Third, should regulation be de-
whether it affirms and furthers citizens’ banks are an important channel for di- credit components at individual bank signed to target exceptional events such
rights. version. To prevent this, the RBI man- levels. as diversion of funds, and make the en-
Open court is a cardinal principle in dates a No-Objection Certificate (NOC) tire system bear the cost? Is it not better
the delivery of justice. The question of from lending banks before opening Operational issues to leave management of such excep-
public access cannot be pushed to the such accounts. Banks should verify The regulations involve many opera- tional risks to the banks? Fourth,
sidelines but must be a central consid- with CRILC, the RBI credit database, tional issues. First, if a borrower has an shouldn’t the costs of regulation be jus-
eration. The shortage of technical in- and inform lenders. Banks should also overdraft, how can there not be a cur- tified by the benefits? Finally, is more
frastructure has too often meant that obtain a NOC from the drawee bank rent account? An overdraft is the right regulation the answer to
access to online hearings is curtailed. when an account is opened through to overdraw in a current account up to a non-compliance?
This ad hoc deviation cannot be al- cheques. limit. Without a limit, a banker may al-
lowed to become a habit of low a temporary overdraft. Implications for compliance
convenience. The regulations The second issue is that the circular There are also implications for com-
The latest Vision Document for The intentions of the impugned circular forecloses such operational flexibility. pliance. When regulation ignores mar-
Phase III of the e-Courts Project seeks dated August 6, 2020 are unexceptiona- Third, why should a bank with low ket practices, it lacks legitimacy, a con-
to address the judiciary’s digital depriv- ble. Widespread non-compliance with exposure transfer funds to another struct from neo-institutionalist
ation. It envisages an infrastructure for mandated safeguards forced the RBI to bank when it can use it to adjust other literature. When legitimacy is wanting,
the judicial system that is ‘natively digi- bar non-lending banks from opening dues with it? compliance suffers. The regulatee or-
tal’ and reflects the effect that the pan- current accounts for large borrowers. Fourth, share in borrowing is not ganisations will resort to what the liter-
demic has had on India’s judicial time- Thus, if borrowing is through a cash static. Crossing the threshold both ways ature calls cosmetic or creative
line and thinking. However, we must credit or overdraft account, no bank could happen often. It could be seaso- compliance.
keep in mind that there will always be can open a current account. nal or monthly with salary payments or Thus, a new banking practice of over-
an inherent resistance to change, If a borrower has no cash credit or collection of dues. Nor are they smooth draft in fixed deposits has emerged.
whether for good or bad. Therefore, overdraft account, a current account curves. Huge lumps accompany one- Another form of creative compliance
two preconditions need to be ad- can be opened subject to restrictions. If time heavy payments or large export could involve sanctioning unnecessary
dressed: adequate trained manpower, the bank’s exposure is less than 10% of proceeds. non-funded limits to artificially boost
and tailoring systems to the specifica- total borrowings, debits to the account Fifth, there is a mismatch between exposure. A bank could also merely re-
tions and contexts that we require. This can only be for transfers to accounts what a borrower needs and the regula- name current accounts as overdraft, as
is more a matter of mindset — not just of with a designated bank. tions allow. Support of non-lending there is no bar in having a credit ba-
judges, but of litigants and lawyers as If total borrowing is ₹50 crore or banks through current accounts in oth- lance in an overdraft account. All this
well; and is linked closely to trust in dig- more, there should be an escrow me- er banks is required for large accounts. will have the counter-intuitive effect of
ital interventions. chanism managed by one bank which The circular rules out this possibility. diluting credit discipline rather than
alone can open a current account. Oth- But such support is available when the strengthening it.
B.N. Srikrishna is a retired judge of the Supreme er lending banks can open ‘collection exposure is below ₹5 crore, when it may
Court of India accounts’ from which funds will be pe- not be required. G. Sreekumar is a former central banker
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DATA POINT
FROM THE ARCHIVES
FIFTY YEARS AGO AUGUST 26, 1971
Astronauts given hero’s welcome
The Apollo-15 astronauts received New
York’s traditional hero’s welcome yesterday
[New York, Aug. 25] with a mortorcade
down Fifth Avenue and a gala reception at
City Hall. Mayor John Lindsay rode with
them and awarded the city’s gold medal — its
highest honour — in the City Hall ceremonies
to Col. David Scott, Lt. Col. James Irwin and
Maj. Alfred Worden. From the City Hall the
astronauts and the wives of two of them
went for a lunch at a restaurant in Rockefell-
er Centre. From there they went to the Unit-
ed Nations where each astronaut was pre-
sented by the Secretary-General, U Thant,
with a specially minted gold medal with the
word “peace” inscribed in each of the five of-
ficial languages of the United Nations. Ear-
lier appearing on the N.B.C. “to-day” show,
Col. David Scott said he and his fellow astro-
nauts followed instructions to eat as much as
they could on their trip to the moon. “We
only had a very little bit of food left when we
returned. We attempted to eat everything,”
he said. David R. Scott said in Washington
yesterday that he was eager to fly with Soviet
cosmonauts in a joint space venture. Speak-
ing at the National Press Club, he said, “I
know six cosmonauts personally. I will be
glad to fly with any of them any day. And I
hope we get that chance.”
A HUNDRED YEARS AGO AUGUST 26, 1921
Unrest among mill hands
Owing to the long unsettled labour condi-
tion in Perambur, the feeling between the
Adi-Dravidas and the strikers has become
embittered which leads to assault, stone-
throwing, or incendiarism, on the part of
one party, or the other causing great incon-
venience, disquiet and panic among the
peaceful inhabitants of the locality. We are
informed by the Police that while the Adi-
Dravidas were returning to the Mills after
their mid-day meal the strikers threw stones
at them. But the Adi-Dravidas were prevent-
ed by the Police from retaliating and sent to
the Mills. Meantime some of the Adi-Dravi-
das not employed in the Mills threw stones
at the Muhammadan huts opposite the Mills.
Again at 6:30 P.M. it has been reported that a
mob of caste men went to the old Slaughter
House Cherri and attacked it with stones and
brick-bats. The Police, who happened to be
on the scene already, brought the situation
well under control. The fusilade of stones
was so strong that a Sergeant opened fire
and shot one round. The crowd then dis-
persed.
A ND-NDE