Karnataka’s dangerous new reservation policy
Summary:
In a move intended to appease local sentiments, the Karnataka government has released draft amendments to the Karnataka Industrial Employment (Standing Orders) Rules of 1961 that would implement 100% reservation for Kannadigas for blue-collar jobs in the private sector. This move by the Karnataka government has sparked off a debate with many questioning the 100% reservation proposed.
What is the Policy all about?
The policy gives 100% horizontal reservation for Kannadigas in all private industries, except the IT-BT sector, which secure concessions under the state industrial policy. If the industries don’t follow these guidelines, the government will cancel all concessions given.
§ According to the policy, industrial establishments shall not provide less than 5 % of employment to persons with disabilities.
What’s the basis for this move?
§ The first and most crucial fact is that this amendment has emanated from, and is largely centred around, Bangalore. With a GDP of $83 billion, it is the single largest contributor to Karnataka’s economy, and the biggest job magnet in the state. If one tracks the history of pro-Kannada agitations in the state over the last twenty years, it’s clear that an overwhelming majority of them have emerged primarily from Bangalore.
§ For at least over a decade, especially after Bangalore exploded on the national and global map as the most sought-after destination primarily for software development, it witnessed a huge population influx from all corners of India naturally upsetting the local and migrant balance and causing social friction primarily owing to economic reasons.
§ With not enough jobs being created—it is the lowest in seven years—and the poor spread of those that are getting created, the pressure on, and in, relatively better-performing states is growing. Thus, with a significant number of blue-collar workers from, say, Bihar in the fray for real-estate or warehouse-operations work in Bangalore, Kannadiga workers of comparable capability find the competition getting much tougher.
However, this demand for full or significant reservations for Kannadigas in the private sector is not new. Its roots lie in the Sarojini Mahishi report submitted to the Government as far back as 1986. Key recommendations of this report include:
§ 100% reservation for Kannadigas in all state government departments and PSUs.
§ 100% reservation for Kannadigas for Group C and D jobs in Central government departments and PSUs.
§ All jobs in the private sector to be reserved for Kannadigas barring, if necessary, senior/skilled positions.
Issues associated with this policy:
§ By arm-twisting the private sector into forcibly hiring Kannadigas irrespective of merit or qualification, the indirect assumption seems to be that Kannadigas are incapable of finding jobs on their own merit or hard work.
§ Equally, the definition of a Kannadiga as “Local people (Kannadiga) means any person born in the state of Karnataka or who has lived in Karnataka for not less than 15 years and knows to read, write, speak and understand Kannada” ignores reality. There are also non-locals who’ve lived here for nearly a generation and don’t know the language.
§ Even as the move will benefit the Kannadiga population, with 100% reservation, the private sector could suffer a setback as it would hinder choosing the best candidates, irrespective of the linguistic background or domicile of the person, to comply with the rule.
§ Also, once it is enforced, there is no stopping other states from coming up with similar populist policies, even for white-collar jobs where merit is paramount for productivity. Besides, with the migrant blue-collar labour out of the picture, wages are likely to get uncompetitive. This could mean greater informalisation of labour, which in turn means greater insecurity for the same workers whose interests the Karnataka government is purportedly protecting with the move.
§ The amendment, if adopted, will also violate the landmark Indra Sawhney judgment of the Supreme Court which caps reservation “of any manner” at 50%.
§ The end result of industry loss of confidence and business moving elsewhere would, of course, be a decline in the economic well-being of the Kannadiga blue-collar workers the policy is supposed to protect.
What can be done?
Rather than cancelling all concessions to private sector companies for employing workers from other states in blue-collar jobs, Karnataka should increase incentives to companies that promote employment of locals.
The State must also ponder over the fallout that the move would inevitably have over investment coming into Karnataka from other states. Instead of such 100% reservation, the government must think constructively to impart skills training to local blue-collar job seekers so that they excel others in an open job market.
Way ahead:
It’s nobody’s contention that genuine grievances of Kannadigas in Bangalore and elsewhere in the state don’t exist or that they shouldn’t be addressed. But trying to address them by coercing private businesses to hire someone for no other merit than the fact that he or she belongs to a certain linguistic group is to kill enterprise and thereby the economy. It offers no incentive to the employee to work; on the contrary, it offers every incentive to the employee to blackmail or harass the employer.
More fundamentally, the seventy-year history of reservations shows that it has failed as a policy to uplift disadvantaged people. It has only created a vast class of permanent victims — irrespective of caste or community — clamouring for ever-escalating demands from the state to disastrous consequences for the nation.
Conclusion:
Demand for job quotas is a symptom of governance failure. A good education is the single most empowering endowment an individual can get and one which governments across India have failed to deliver. Karnataka government is now trying to offset this failure with a dangerous short cut. This short cut will jeopardise the state’s industrial policy which aimed to generate an industrial growth rate of 12% and enhance the contribution of the manufacturing sector to the state economy from about 17% to 20%. Potential investments in Karnataka will be diverted if an onerous new condition such as 100% job reservation for locals kicks in. If the government wants to boost local employability further, it can do so by improving skills and education in the state to a high level. Blocking migrant labour will broaden access to employment only in the short term. The sustainable method of doing so, conversely, is by enabling the native population on multiple fronts—education, health, social safety net. Karnataka has done better on this front than most other states. It is a pity it is attempting to change course now.
indian Enterprise Development Services
The Government has approved cadre review and formation of the Indian Enterprise Development Service (IEDS) in the Office of the Development Commissioner, Ministry of Micro, Small and Medium Enterprises.
§ The creation of the new cadre and change in structure is aimed at strengthening the organisation. It will also help achieve the vision of Startup India, Stand-up India and Make in India.
§ The measure will also enhance the capacity and efficiency of the organisation and also help in achieving growth in the MSME sector through a focussed and dedicated cadre of technical officers.
Background:
The Service has been created by absorbing 11 trades, recruitment to which had been done differently, following different rules. All these trades were created in the 1950s and 1960s when industries got developed under the regulation regime. The work of the officers of the department has changed over the years and there is need to have a cadre which works for the development of enterprise and thinks holistically
Way ahead:
The Indian Enterprise Development Service, to start with, will have a cadre strength of 617 officers, 6 of which will be at the level of joint secretaries. These officers will man 72 field offices of the Development Commissioner and the headquarters in Delhi. Out of the 72 field offices, 30 are MSME development institutes and 28 branch institutes
Uttar Pradesh sends first proposal for construction of houses for urban poor under PMAY (Urban)
Uttar Pradesh has become the 29th State to send proposals for construction of affordable houses for urban poor to the Ministry of Housing & Urban Poverty Alleviation.
§ The first such proposal for construction of 11,286 houses for urban poor in 34 towns of Uttar Pradesh was approved by the Ministry of HUPA recently.
§ Total investment involved in construction of these houses is Rs.384 cr. The Ministry has approved central assistance of Rs. 160 cr in this regard.
About PMAY-Urban:
The Pradhan Mantri Awas Yojana (Urban) Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022, when the Nation completes 75 years of its Independence.
The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:
§ Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource.
§ Promotion of Affordable Housing for weaker section through credit linked subsidy.
§ Affordable Housing in Partnership with Public & Private sectors.
§ Subsidy for beneficiary-led individual house construction /enhancement.
Key facts:
§ The beneficiaries are poor and people living under EWS and LIG categories in the country.
§ The scheme is divided into three phases. In the first phase, a total of 100 cities will be covered from April 2015 to March 2017. In phase two, 200 cities will be covered from April 2017 to March 2019. In the third phase, the leftover cities will be covered from April 2019 to March 2022.
§ The government is providing an interest subsidy of 6.5% on housing loans which can be availed by beneficiaries for 15 years from start of loan date.
§ The government will grant Rs 1 lakh to all the beneficiaries of the scheme. In addition, Rs 1.5 lakh will be given to all eligible urban poor who want to construct their houses in urban areas or plan to go for renovation in their existing houses. One can also avail loans under this scheme to build toilets in existing houses.
SC criticises poor implementation of SC/ST Act
Criticising the government for its “indifferent attitude” towards the implementation of the Scheduled Castes/Scheduled Tribes (Prevention of Atrocities) Act, the Supreme Court has directed the National Legal Services Authority to frame schemes for spreading legal awareness and free consultations to members of the SC/ST communities nationwide.
§ The court has asked the authorities to discharge their duties to protect the SCs/STs to attain the constitutional goal of equality for all citizens.
About NALSA:
The National Legal Services Authority (NALSA) has been constituted under the Legal Services Authorities Act, 1987 to provide free Legal Services to the weaker sections of the society and to organize Lok Adalats for amicable settlement of disputes.
§ The Chief Justice of India is patron-in-chief of NALSA while second seniormost judge of Supreme Court of India is the Executive-Chairman.
There is a provision for similar mechanism at state and district level also headed by Chief Justice of High Courts and Chief Judges of District courts respectively:
§ In every State, State Legal Services Authority has been constituted to give effect to the policies and directions of the NALSA and to give free legal services to the people and conduct Lok Adalats in the State. The State Legal Services Authority is headed by Hon’ble the Chief Justice of the respective High Court who is the Patron-in-Chief of the State Legal Services Authority.
§ In every District, District Legal Services Authority has been constituted to implement Legal Services Programmes in the District. The District Legal Services Authority is situated in the District Courts Complex in every District and chaired by the District Judge of the respective district.
Pardon, the gender wage gap is showing
Global Wage Report 2016-17 was recently released by the International Labour Organisation (ILO).
Highlights of the report:
Performance of India:
§ India has among the worst levels of gender wage disparity — men earning more than women in similar jobs — with the gap exceeding 30%.
§ In India, women formed 60% of the lowest paid wage labour, but only 15% of the highest wage-earners. This means not only are women poorly represented in the top bracket of wage-earners, the gender pay gap at the bottom is also very wide in India.
§ In India, the top one per cent earned 33 times what the bottom 10% did. The top 10% also earned 43% of all wages. Since 2006, average wages rose by 60% in India, while they more than doubled in China.
Global scenario:
§ Singapore has the lowest wage disparity, at 3%. Among major economies, only South Korea fared worse than India, with a gap of 37%.
§ The share of women among wage earners was among the lowest in South Asia. Compared to a global average of 40%, and an Asia-Pacific average of 38%, in South Asia (whose dominant economy is India), only 20% of wage earners were women.
§ The gender pay gap is smallest (8%) in the group of countries where the collective bargaining rate is at least 80%, and widest in countries with weak collective bargaining and no or very low minimum wages.
Reasons for the wage gap:
§ The report noted that typically, women’s educational choices produced occupational segregation. For instance, since the majority of those who studied nursing were women, “this profession is over-represented among women”.
§ At the same time, care work is undervalued because it may be seen as a natural female attribute rather than a skill to be acquired. Thus, a higher representation of women in sectors where their work is undervalued results in a gender pay gap.
Too hot to handle — alarming rise in forest fires this year
Parliamentary Standing Committee on Science and Technology has submitted its report on forest fires. The report primarily focuses on the prevention and containing of fires in the Himalayan forests spread across Uttarakhand, Himachal Pradesh, and Jammu and Kashmir. In Himachal and Uttarakhand, over 17,502 acres have been ravaged this year due to forest fires — a rise of over 171%.
Background:
The committee was formed after a series of devastating forest fires earlier this year, including the prolonged one that charred 4,000 hectares of forest land across 13 districts of Uttarakhand.
Highlights of the report:
§ The frequency of forest fires in India has risen by a drastic 55% in the past year. The number has touched 24,817 in 2016 from around 15,937 fires in 2015.
§ The increase is seen even though 2015, considered a drought year, had seen a decline in frequency of forest fires of around 16%.
§ The three central States of Odisha, Chhattisgarh, and Madhya Pradesh contribute a third of the forest fires. Madhya Pradesh has seen a nearly ten-fold increase, from just 294 in 2015 to more than 2,600 in 2016.
Important suggestions made by the committee:
According to the report, accumulated Chir pine needles — which are inflammable due to their high-resin content — are believed to be a “prominent factor in occurring and spreading of forest fires”. Hence, the committee has recommended the procurement of sweeping machines to clear roadsides of Chir pine needles, while advocating large-scale incentives and programmes (including under the Mahatma Gandhi National Rural Employment Guarantee Act) to collect pines for use as fuel, and other incineration.
The committee has also suggested a national policy on managing forest fires.
Facts for Prelims
National Apprenticeship Promotion Scheme (NAPS):
§ Prime Minister Shri Narendra Modi recently launched National Apprenticeship Promotion Scheme (NAPS) at Kanpur.
§ The scheme has an outlay of Rs 10000 crore and it involves incentivizing employers in sharing 25% of total cost of stipend paid to the apprentices.
§ It is for the first time Govt. of India has come forward to incentivize the employers to participate pro-actively in apprenticeship training.
Coal Mitra:
§ It is a Web portal for flexibility in Utilization of Domestic Coal. It was recently launched by the government.
§ It has been designed to bring about flexibility in Utilization of Domestic Coal by transferring the reserves to more cost efficient State/Centre owned or Private sector generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.
§ The web portal would be used by the State/Central Gencos to display information about normative fixed and variable charges of electricity for the previous month as well as margin available for additional generation so as to enable the utilities identify stations for transfer of coal.
It would host data on Operational and Financial parameters of each coal based station; Quantity and source of supply coal to the power plant; and Distance of Power plant form the Coal mine.
Ending the Manipur blockade
Summary:
It has been more than one month since the blockade of the national highways leading to the Manipur valley, called by the United Naga Council (UNC). This has severely affected life in the State, with shortages and escalating costs of essential supplies such as fuel and food, even as demonetisation has exacerbated problems.
§ Manipur may be a small state with a population of just over 25 lakh, but the divide between the people living in the valley and the hills is so wide that not a year goes by without bandhs and other protests over several disagreements. Imphal valley is predominantly inhabited by the Meiteis, and the hills are predominantly inhabited by the Nagas and Kukis.
Immediate cause for the present crisis:
The blockade is in place to oppose the creation of new districts by the state government. According to the government, the decision for formation of seven new districts was taken for administrative convenience and to enable the state government take up development works effectively even in the remote and underdeveloped parts of the state.
Background:
The state government issued a gazette notification for the creation of seven new districts by bifurcating seven (of a total of nine) districts. This decision had as much to do with long-pending demands — in particular, for a new Kuki-majority district to be carved out of the larger Senapati hill district — as with easing administrative access to far-flung areas from the district headquarters.
Why the UNC is opposing this move?While residents and groups in the new districts have welcomed the decision, the UNC has protested, alleging that areas with a Naga population have been divided and that the lack of consultation is a violation of commitments made by both the Centre and the State in various memoranda of understanding.
§ While better administrative management of the seven new districts should be feasible, the Manipuri Nagas of the existing hill districts of Tamenglong, Ukhrul, Senapati and Chandel feel that some of the new smaller districts would be under greater political control of the Manipur state administration at Imphal.
§ There is also a foreboding among the Nagas that non-Naga tribes like Kukis would eventually dominate in districts like Kangpokpi — where presently there is a coexistence of Kukis, Nagas and the Meiteis.
§ The UNC also claims that the creation of new districts in the Naga dominated hill areas will encroach upon and divide the traditional land holdings of Naga tribes.
§ Besides, the government has not consulted the Hill Area Committees before taking the decision. The Hill Area Committees are formed to protect the rights of hill people, and under Article 371(C) of Constitution, must be consulted on matters relating to tribal people.
Why the centre should intervene?
The state of turmoil in Manipur appears to have become a recurrent phenomenon. About a year ago, serious disturbances affecting public order arose after the Manipur Assembly hurriedly passed three controversial bills on August 31, 2015. These related to compulsory registration of non-Manipuris, non-alienation of their land rights, and registration of employees of shops and establishments in the Imphal Valley. These were passed without prior consideration and vetting by the members belonging to the hill constituencies and hill councils. These bills, deemed to be negatively affecting the interests of tribals and violative of the afore-mentioned constitutional provisions, had triggered a huge reaction in the hill districts and Churachanpur. These three bills did not finally get Presidential accent, and perforce had to be reverted back by the Union Home Ministry (MHA) to the state government for reconsideration. As in the case of the creation of seven new districts, the state government`s unilateral and no
consensual action triggered the earlier crisis as well.
How the situation is affecting the citizens?
The UNC blockade has been causing economic distress with prices of essential commodities including fuel and drugs increasing substantially. The impact of demonetization and scarcity of currency is also a factor contributing to public distress.
What needs to be done now?
In the existing politico-security milieu of north-eastern states — and in particular the India-Myanmar border region which has experienced depredations by the NSCN-Khaplang group, such non-consensual actions by the state executive authorities cannot but be detrimental to India`s security interests. Though the anti-national insurgent Meitei groups drawing support in the Imphal Valley region seem to be lying low currently as a result of counter action by the state police and central paramilitary forces, political unrest is detrimental to the overall security situation in Manipur.
§ The Union government has a residuary responsibility to assist in turning around the present situation. While a direct assumption of executive responsibility by the Union government may not be warranted, a more proactive role of the Governor at New Delhi`s behest, may be justifiably required. The Constitution has adequate scope for this purpose under its Seventh schedule and Article 371 C, without impinging on the autonomy of the state.
§ MHA may simultaneously use the instrumentality of the state governor for suitable overview and to ensure that the consultative process necessary with the hill councils is mandatorily followed within the existing constitutional framework.
Way ahead:
Counter-blockades have been called by other groups in the state in response to the blockades by UNC. There has been violence both in the hills and in the valley. The State government has sought the Centre’s assistance to end the blockade, given that New Delhi has been in peace talks with the National Socialist Council of Nagalim (Isak-Muivah) group that supports the UNC. While the Centre has sent paramilitary forces to both Nagaland and Manipur, the inaction in clearing the blockade of the national highways is puzzling.
Government officials have been in talks with tribal groups over the past few days. Meitei and tribal groups too have reached out to each other in search of a resolution. Officials believe the situation is likely to ease. However, the UNC has said it will not call off its economic blockade; however, it has been holding talks with different sections of Naga society to chalk out its strategy.
Conclusion:
Efforts to impose a political solution through blockades that cut arterial routes
supplying essential goods to various areas of Manipur are a cynical ploy. Such action heightens ethnic polarisation and threatens, once again, the fragile peace in the State. Ideally there should be a dialogue that involves all major stakeholders — the State government, groups that support redistricting, the UNC and the Centre. But first, there should be zero tolerance towards all such blockades.
The ongoing crisis must also be seen against the backdrop of a new political scenario wherein new players are seeking to expand their areas of influence while old warhorses struggle to hold on to their positions
Anti-Airfield Weapon
The Defence and Research Development Organization (DRDO) recently successfully flight tested the Smart Anti-Airfield Weapon (SAAW), from an Indian Air Force (IAF) aircraft.
Key facts:
§ SAAW is an indigenously designed and developed 120 kg. class smart weapon.
§ It is developed by DRDO.
§ It is capable of engaging ground targets with high precision up to a range of 100 kms.
§ The light weight high precision guided bomb is one of the world class weapons systems.
Land of religious body can be acquired: HC
Allahabad High Court has ruled that land belonging to religious body can be used for public purpose.
Background:
High Court made its remark while asking the Church of North India Association and NHAI to “work out modality” for “demolition or shifting” of a church for construction of a six-lane road.
§ In its plea, the petitioner had argued that acquisition of the land by NHAI violates the Place of Worship (Special Provisions) Act which safeguards “all religious properties”.
§ The petitioner had also argued that the move violated the “right to freedom of religion” and the “freedom to manage religious affairs” guaranteed under Articles 25 and 26 of the Constitution.
What else has the court said?
The court noted, “once there is public purpose for which land in question has been acquired, invoking provision of National Highways Act, 1956, then no relief can be accorded to the petitioner”.
The court also said that the Place of Worship (Special Provisions) Act only “bars any person from converting any place of worship of any religious denomination or different religious denomination” and that the “provision had been introduced to see that communal harmony is not disturbed and persons of one religious community may not take on the other”.
Need to link Aadhaar with details of voters
Noting that “there is an emergent need to link Aadhaar with the electoral details of voters”, the Election Commission of India has given a mixed response to the Supreme Court on providing absentee voting rights, like electronic voting and proxy voting, to over 300 million domestic migrants in the country, saying there is no foolproof mechanism to verify their identity and block duplicity.
Why it is difficult to provide absentee voting rights?
“Domestic migrants” do not constitute a “uniquely identifiable and countable class.” There is also no reliable information or documentation on the number of domestic migrants in the country. The last one on them is the 15-year-old 2001 Census data of 314.5 million.
Therefore, any provision of absentee voting rights to the “loosely defined term domestic migrants” would become a logistical nightmare for the Commission, that is, for example, they are so spread out that an election in one Assembly constituency would mean electoral arrangements in 4,120 Assembly constituencies.
Besides, multiple vernacular data and “varying patterns of spelling” and difficulty in ascertaining the date of birth of voters have given rise to multiple entries of voters.
Background:
The Supreme Court had asked the Election Commission to study the possibility for electoral reforms to allow inter-State migrants voting privileges like postal ballot available to government servants.
In this regard, EC had last year set up a committee to study the possibility of amending the electoral law to empower voters who have migrated to other States within the country.
Way ahead:
EC has not totally negated the idea of providing domestic migrants with absentee voting rights. It is in favour of extending these rights only to a small subset of migrants who formed an identifiable and countable class of electors not delinked from their present place of registration and only “temporarily absent” from their place of ordinary residence.
Kuchipudi performers dance their way into Guinness Records
Andhra Pradesh’s own classical dance ‘Kuchipudi’ has found a place in the Guinness World Records yet again when a record 6,117 dancers came together to present a show at the IGMC Stadium in Vijaywada recently. In 2012, a similar feat was achieved when 5,900 dancers performed ‘Kuchipudi’ in Hyderabad.
§ The “Maha Brunda Natyam” (grand group dance) was organised as part of the ‘5th International Kuchipudi Dance Convention’ organised by the state Department of Language and Culture.
§ “Jayamu Jayamu” is one of the glorious items of ‘Kuchipudi’ dance choreographed by the legend Vempati China Satyam.
Kuchipudi:
Kuchipudi is one of the classical dance forms of the South India. Kuchipudi derives its name from the Kuchipudi village of Andhra Pradesh.
§ Kuchipudi exhibits scenes from the Hindu Epics, legends and mythological tales through a combination of music, dance and acting.
§ Like other classical dances, Kuchipudi also comprises pure dance, mime and histrionics but it is the use of speech that distinguishes Kuchipudi’s presentation as dance drama.
§ In its early form, the female roles were played by boys and young men of beautiful looks. The director (called Sutradhar) played the most important role. He combined the role of conductor, dancer, singer, musician, comedian, all in one. In modern times the Kuchipudi dance is considerably different than it originally used to be. Most of the performances are solo, done by female dancers.
Origin:
§ In 17th century Kuchipudi style of Yakshagaana was conceived by Siddhendra Yogi a Vaishnava poet and visionary who had the capacity to give concrete shape to some of his visions. He was steeped in the literary Yakshagaana tradition being guided by his guru Teerthanaaraayana Yogi who composed the Krishna-Leelatarangini in Sanskrit.
§ It was Lakshminarayan Shastry (1886-1956) who introduced many new elements including solo dancing and training of female dancers in this dance style.
Important features:
§ Kuchipudi carries the sensuousness and fluidity of Odissi with the geometric line of today’s Bharata Natyam.
§ As in all other classical dance forms of India, the Kuchipudi dance is both interpretive and lyrical, making use of abstract dance sequences as well.
§ Kuchipudi dance retains its devotional character with stress on dramatic outlook.
Accompanying music:
The music that accompanies the dance is according to the classical school of Carnatic music and is delightfully syncopatic. The accompanying musicians, besides the vocalist are: a mridangam player to provide percussion music, a violin or veena player or both for providing instrumental melodic music, and a cymbal player who usually conducts the orchestra.
Pakistan urges World Bank to fulfil commitment under Indus treaty
Pakistan has urged the World Bank to fulfil its commitment in accordance with the Indus Waters Treaty (IWT) under which no party can pause the performance of its role.
§ The demand was made by Pakistan in response to the World Bank’s decision to pause the process of empanelment of the Court of Arbitration.
Background:
Recently, the World Bank had announced a pause in the separate processes initiated by India and Pakistan under the Indus Waters Treaty to allow the two countries to consider alternative ways to resolve their disagreements.
The decision halted the appointment of a neutral expert as requested by India and the Chairman of the Court of Arbitration as requested by Pakistan to resolve issues regarding two hydro-electric power plants under construction by India along the Indus Rivers system.
‘Google Tax’ detrimental to startup ecosystem: Experts
The equalisation levy, also known as Google Tax’ which the government is imposing on online advertising revenue by non-resident e-commerce companies earned in India, is expected to adversely affect the startup ecosystem going forward, according to tax experts.
Why this tax is detrimental to startup ecosystem?
The levy which is at 6% presently became effective on June 1. If passed on to startups, the applicable tax is expected to be in excess of 22%, including the 15% service tax and could further increase if GST comes into effect.
§ Besides, the fact that the levy has been notified in addition to taxes payable by a businessman on imported online services unduly increases the cost of doing business for startups which in turn stifles innovation.
§ Usually, small scale technology driven companies generally do not have enough capital to engage employees inhouse for all necessary business activities. Google tax adds to this problem.
§ Also, emerging startups burn a lot of cash in the first few years before becoming profitable and when the levy is expanded to include a vast number of other digital services the burden is set to multiply exponentially, hampering even more serious cost to innovation.
What needs to be done?
A cap should be placed on the rate of taxation at the very least, and the number of notified services subject to the levy should not be expanded until there is an impact study undertaken by the government.
Sources: et.
Agni 5, India’s Longest Range Nuclear Capable Missile, Successfully Test Fired
Agni-5, India’s longest range nuclear capable missile, was recently successfully test fired from the Kalam Island off Odisha coast by the Defence Research and Development Organisation or DRDO.
§ The intercontinental surface-to-surface nuclear capable ballistic missile, the latest in India’s “Agni” family of medium to intercontinental range missiles, has been through four trials now.
§ The Agni 5 missile, with new technology for navigation and guidance, gives India the strategic depth it needs to contain its enemies, say scientists. After a few more trials, it will soon join India’s military arsenal.
§ This was the first test of the Agni-5 missile after India became a member of the Missile Technology Control Regime, a 35-nation group to check the spread of unmanned delivery systems for nuclear weapons.
Key facts:
§ Agni-5 has a range of over 5,000 km and can carry about a 1,000-kg warhead. It can target almost all of Asia including Pakistan and China and Europe.
§ The solid propellant driven missile will be tested from a canister which gives it all-weather and any terrain mobile launch capability.
§ The 17-metre long Agni-5 Missile weighs about 50 tonnes and is a very agile and modern weapon system.
§ The surface-to-surface missile is a fire-and-forget system that cannot be easily detected as it follows a ballistic trajectory.
§ India describes the Agni – 5 missile system as a ‘weapon of peace’.
§ The first missile of the series, Agni-I was developed under the Integrated Guided Missile Development Program and tested in 1989.
World’s most heat resistant material found
Scientists have identified materials that can withstand temperatures of nearly 4,000 degrees Celsius, an advance that may pave the way for improved heat resistant shielding for the faster-than-ever hypersonic space vehicles.
Key facts:
§ Researchers from Imperial College London in the UK discovered that the melting point of hafnium carbide is the highest ever recorded for a material.
§ Tantalum carbide (TaC) and hafnium carbide (HfC) are refractory ceramics, meaning they are extraordinarily resistant to heat.
§ Their ability to withstand extremely harsh environments means that refractory ceramics could be used in thermal protection systems on high-speed vehicles and as fuel cladding in the super-heated environments of nuclear reactors.
How the materials were tested?
There is no technology available to test the melting point of TaC and HfC in the lab to determine how truly extreme an environment they could function in. Therefore, the researchers developed a new extreme heating technique using lasers to test the heat tolerance of TaC and HfC.
§ They used the laser-heating techniques to find the point at which TaC and HfC melted, both separately and as mixed compositions of both.
§ They found that the mixed compound was consistent with previous research, melting at 3,905 degrees Celsius, but the two compounds on their own exceeded previous recorded melting points. The compound TaC melted at 3,768 degrees Celsius, and HfC melted at 3,958 degrees Celsius.
Sources: the hindu.
Online safety campaign by Google:
§ Google has teamed up with the Ministry of Consumer Affairs in India to launch a country-wide ‘Digitally Safe Consumer’ campaign in order to raise awareness and protect consumer interest on the internet.
§ As part of the campaign, Google will work on educating consumer organisations in India, help in training members of the Consumer Affairs department, and also work with officials in the National Consumer Helpline.
§ Google will start rolling out this year-long campaign in January 2017, and it will work towards organising ‘Digital Literacy, Safety & Security’ workshops. Google will rely on the ‘Train the Trainer’ model for this exercise, and plans to train around 500 people, including 250 consumer organisations across the country.
§ The educational campaign will also feature write ups, posters, interactive quizzes and audio-visuals that will help educate users about the challenges of Internet safety and security.