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Spotlight
Perpetual Dance Of Democracy: ONE NATION, ONE POLL, ANYONE?, By Poonam I Kaushish, 19 March 2024 |
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0Political Diary
New Delhi, 19 March 2024
Perpetual Dance Of
Democracy
ONE NATION, ONE POLL,
ANYONE?
By Poonam I Kaushish
Its’ party
time folks as India readies for its greatest nautanki of democracy: General elections April-May. Amidst the
bugle sounding BJP’s rallying cry for ‘Ab
ki baar 400 paar’ and Congress President Kharge warning it could well be
the last election and death knell for federalism, Ex-President Kovind
Committee’s 320-pages report recommending a two-step electoral process: Lok
Sabha and Assemblies elections followed by municipal and panchayat polls within 100 days has caught the zeitgeist this week.
Including the
suggestion that once the appointed date to bring into force provisions for
transition to simultaneous polls is fixed, “tenure of all State Assemblies
constituted in any election after the appointed date would come to an end on
expiry of Lok Sabha’s full term irrespective of when an Assembly was
constituted.” Moreover, Constitutional amendments to this effect would not need
ratification by States.
Questionable are we
moving to ‘One nation, One Election?’ Specially as the country has witnessed
400 polls to Lok Sabha and State Assemblies till date. And given Law Commission
had thrice — 1999, 2015 and 2018 — argued for simultaneous elections to “free
citizens, Parties and Government from encumbrance of asynchronous elections.
Ditto Parliamentary Committee
2016 which said holding simultaneous elections would reduce massive expenditure
incurred in holding polls, underscored by Election Commission pegging cost of
holding simultaneous elections at Rs 4,500 crore.
Undeniably, simultaneous
elections could be economically viable and a big saving for exchequer. Welcome,
as it would help avoid disruptions in governance and policy paralysis due to
frequent polls as once a Party is elected and Government formed it can get down
to work, take hard decisions in public interest and concentrate on delivering
good governance without worrying about
its impact on vote banks.
Think. Several good
initiatives are dumped due to electoral considerations lest it upset a caste,
community, religion or region. All, becoming victims of policy shutdown, mismanagement
and poor implementation.
Let’s face it. Post 2019 Lok Sabha elections, we witnessed
35 State Assembly polls. Now alongside Lok Sabha we have Odisha, Andhra,
Arunachal and Sikkim followed by Maharashtra-Haryana October, Jharkhand November. February 2025 Delhi and December Bihar goes to
polls.
With 15 Parties
opposing the report, challenge is the procedural details and Government’s disregard
of citizens’ right to removing non-performing Governments. Besides, fear it
militates against the federal structure of multiple diversities and Constitution’s
spirit along-with complex legal procedures that Kovind report proposes for bringing
Constitutional amendments which needs to be weighed carefully to allay fears of
“infringing federalism.”
More. Opposition
perceives one-nation-one-poll as imposition of BJP;s political agenda and
extension of its ideological preference for homogeneity and uniformity vis-à-vis faith, customs, language,
dress and diet given federal relations are fraught in rival ruled States. And it
hinders political accountability and performance scrutiny.
Recall, post Independence,
elections to Lok Sabha and State Assemblies were conducted simultaneously October
1951-May 1952 until Nehru Cabinet blotted the copybook by dismissing CPI-led
Government in Kerala 1059. But with political instability gaining ground in the
sixties, the cycle of simultaneous elections got disrupted.
While Punjab, Bihar
and UP couldn’t complete their tenures on three occasions between 1967-1980,
Odisha Assembly witnessed five elections during that period and West Bengal Assembly
four elections 1967-1972. Resulting in many unstable Governments at Centre and
States, leading to early dissolution of Lok Sabha or Assemblies whereby India
could never go back to holding simultaneous elections again.
Moreover, expenditure spiralled,
doubling to over Rs 23 crores in 1980, further doubling to Rs 54 crores 1984
and Rs 154 crores 1989. In 1991expenses shot up to Rs 359 crores, 1999 to Rs
880 crores, 2004 Rs 1300 crores, 2014 Lok Sabha elections Rs 30,000 crores and staggering
Rs 60,000 crores in 2019.
However, the legal and Constitutional
position on Lok Sabha/ State Assembly term is challenging and requires
amendments, including ratification by States to avoid future legal confrontation.
An example: Article 83(2) and 172(1) aver Lok Sabha/ State Assembly term
respectively should be for five years from date of its first sitting.
But, both do not have a fixed term
and can be dissolved earlier. Further, the provisos allow extension of Parliament/Assembly's
term for six months at a time following a ‘proclamation of emergency.’
Besides, Article 356 allows Centre
to bring a State under President's rule by prematurely dissolving its Assembly.
But, the Anti-Defection Act, 1995 and Supreme Court placed several safeguards to
prevent misuse of this power.
Kovind’s proposal is not finding
takers among INDIA Parties. Why should we agree to truncated tenure of our
State Government, is a common refrain. They believe Government’s motive of
simultaneous elections is to bridge BJP’s weakness in Southern States where it
is hampered byt linguistic sub-nationalism and ideology.
“It is motivated by political considerations, as when
concurrent elections are held voters tend to vote for the same Party. BJP knows
it has unparalleled dominance at national level. Also, poll issues at Centre
and States are different which would create confusion. A Party could be
deserving of support at the Centre for its policies and performance at the
national level. Yet, it could be deserving of popular punishment and defeat for
its policies and performance at State level. Also, this fractious process would
strain our federal fabric,” said a Congress leader.
Some argue a fixed term for Lok Sabha/ State
Legislatures goes against Parliamentary democracy’s basic tenets. What happens
if after simultaneous polls, an Assembly’s five-year term is interrupted by
political realignments? Clearly, this would help the dominant national Party at
the Centre and disadvantage the regional player.
What happens if a Government falls
at the Centre or State mid-term? Or if a Government enjoying people’s mandate is voted out, it would
continue to hold office or be replaced by another Government, which might not
necessarily enjoy the popular mandate?
Plainly, a Government which lacks
the confidence of the House would be foisted on people, with no say in the
matter. Smacking, of de facto
dictatorship or monarchical anarchy, an idea which translates into
unrepresentative governance. It would impose artificial fixity on legislatures
terms at Centre and States which is at odds with a system given its staggering
diversity.
To avoid this EC suggests a no-confidence
motion against a Government must come alongside a confidence motion for another
Government and Prime Minister and voting for both motions done simultaneously.
Ditto in State Assemblies.
As and when India ushers in ‘One Nation, One
Election’ it will not be the first country to do so. In Germany, Bundestag
(Lower House), Landtags (State Assembly) and local elections are held
simultaneously. Philippines, too conducts simultaneous elections every three
years, though it has a Presidential form of Government.
True, there are cogent arguments on either side:
Development vs accountability?
Electoral expenses vs political
choices? Governance vs electoral
fairness? Given how elections have an
almost talismanic power in the country’s democracy the stakes couldn’t be
higher.
Remember, elections
are the bedrock of our democracy, we should avoid polls duplication. With
States perpetually in election mode, managing Government is akin to running
with the hare and hunting with the hound. India’s democracy should not be
reduced to a tu-tu mein-mein between
Parties all the time. ---- INFA
(Copyright India News & Feature Alliance)
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Electoral Bonds Shear Rs 29 Tr: BANKS, ECONOMY IN TURMOIL, By Shivaji Sarkar, 18 March 2024 |
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Economic
Highlights
New
Delhi, 18 March 2024
Electoral Bonds Shear Rs 29 Tr
BANKS, ECONOMY IN TURMOIL
By Shivaji Sarkar
The Indian
economy may or may not have matured, it has specialised in its murky Bombay stock
operations. It did not crash alone on Wednesday. Two days earlier, on Monday,
too the chinks were noticed in the State Bank of India shares in the wake of the
Supreme Court’s firmness on submission of details on electoral bonds (EB). In
two months, the market has dumped a huge loss of Rs 29 lakh crore. The small
caps also took a hit of Rs 30,246 crore portraying far from a glowing picture.
The
losses are the biggest since Covid-19. On March 11, the market lost, Rs 3.15
lakh crore mostly hitting the SBI, followed by Rs 13.9 lakh crore losses across
the board, including the Adani group, on March 14. In two sessions the market lost
Rs 17.05 lakh crore or almost 30 per cent equivalent of the total central budgetary
amount. It tanks over 900 points on Wednesday and on Monday it loses 617.75
points. Together it is a bigger loss than March 13, 2020, when the fall was
estimated at minus 14.2 per cent.
Not to
forget that in the wake of the Hindenberg disclosures, the stock market crashed
by 1168 points or almost Rs 12 lakh crore on January 23, 2024, the biggest in
recent times. Most hits were taken by the groups of Adani, Zee and IRCON. In just
about two months, the market has jolted the country with a Rs 29 lakh crore wipe
out. The 2024-25 budget is of Rs 47.65 lakh crore.
Complicating
the issue, the retail traders as a new phenomenon are also suffering. Volumes
in retail trades multiplied since 2019, when it overtook the US. Murkier operations
are in sight. An index of small-cap stocks lost more than Rs 30,246 crore in
market value in less than two weeks through March 13. In 2023, Indian investors
traded 85 billion in small cap, according to SEBI, in which 90 per cent of
active traders lost.
In
2021-22, investors lost $ 5.4 billion, or $ 1468 apiece, a big sum, for a
country with per capita GDP of $2300. This happens through dream cyber kiosks
that mushroomed of Whatsapp, Facebook, Telegram and Instagram. The online media
carry advertisements by CEOs of top companies alluring to multiply Rs 500 investments.
As per SEBI these are mere traps.
Are the
electoral bonds the big shakers? Perhaps. Investors are wary of disclosures of
their identities at election time. The way foreign portfolio investors withdrew
from the market faintly indicates this. There have been many MoUs with houses
in West Asia and other countries.
Some
days back, SEBI Chairman Madhabi Puri Buch had raised concern over ‘frothiness
and bubbliness’. On Thursday, Uday Kotak of the Kotak group also says there is
‘frothiness’. The jargon does not say much except that the regulators’
awareness of murkiness and their inability to check it.
In its
statement to the court the SBI says that of the 22, 207 electoral bonds, 22,030
were purchased. The remaining were deposited in the Prime Minister’s relief
fund. Two documents were filed with the Election Commission of India, one
mentioning names of political parties and the other detailing the bonds
redeemed by them. The other set contains the details of electoral bonds purchasers.
The total amount has not yet been disclosed though the EC announced that the
list has been uploaded on its website.
It is
interesting to note that the Delhi High Court had declared the election donations
illegal just prior to the 2014 elections. On 29 March 2014, the court observed
that both the Congress and BJP broke laws by accepting cash from companies
owned by London-listed Vedanta group (Vedanta Resources) between 2004 and 2012.
Sterlite Industries India and Sesa Goa, two companies then registered in India
but whose controlling shareholder was Vedanta, donated Rs 87.9 million in total
to the Congress between 2004 and 2012. Sesa Goa donated Rs 14.2 million to the
BJP, according to the Association for Democratic Reforms (ADR) and presented it
in the court.
An
agency report says that a Prudent Electoral Trust has raised $272 million since
its creation in 2013, funnelled “roughly 71 per cent of that to BJP. The trust
donated $20.6 million to the Congress as well”. It mentions that eight business
groups donated to the trust. Nobody has denied receiving corporate funding. The
controversy is limited to the factor whether their names and total funding to
the parties be disclosed or not.
On
February 15, the Supreme Court struck down the Electoral Bond scheme or anonymous
donations to political parties, as unconstitutional, violating right to information
under Article 19(1) A of the Constitution. The court also quashed the
amendments made to the Income Tax Act and the Representation of People Act,
which made the donations anonymous.
During
the last 10 years, electoral trusts reportedly disbursed about Rs 2557.74 to
various political parties. Donations are stated to have 360 per cent growth. The
growth of donations was phenomenal from 2018 to 2022. Political parties
received Rs 9191.41 crore through electoral bonds, with the ruling parties always
receiving higher funding.
The
court held that the scheme cannot be justified by saying that it would help
curb black money in politics. Instead, it said that transparency in political
funding cannot be achieved granting absolute exemptions and feared that such
fundings could have a quid pro quo. The top court’s actions rattled the market
as such dealings create crisis of credibility and confidence.
The
stock market is not an indication of economic growth. A small fall in the
market capex, however, severely impacts the health of the banks. Since the
Harshad Mehta scam in 1992, a number of Indian banks and FIs collapsed or merged
and now the SBI, Indusind and some other banks are in disarray. The market may
recover, but the banking process takes a severe beating.
This
also raises questions about high electoral expenses. The court did have this in
mind like the petitioner, ADR. Besides, travel costs have increased, which is
owed to the artificially high pricing of petroleum, natural gas, coal and now
even electricity. It is also linked to unnecessary toll on highways jacking up
inflation to over 5.5 per cent despite low international crude cost. Favours for
construction contracts of projects are also questionable, not to forget that rising
costs have a cascading effect.
Market regulators
need severe course correction. Losing such huge amount of money in just two
months is a serious jolt to the economy and the banking sector. And it may not
be the last of such national trauma. Undoubtedly, it would be interesting to
watch how it impacts the elections. ---INFA
(Copyright, India News & Feature Alliance)
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India-FTA Trade Pact: A REAL BREAKTHROUGH, By Prof. (Dr.) D.K. Giri, 15 March 2024 |
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Round The World
New Delhi, 15 March
2024
India-FTA Trade Pact
A REAL BREAKTHROUGH
By Prof. (Dr.) D.K. Giri
(Secretary General, Assn for
Democratic Socialism)
The signing of Trade and Economic Partnership Agreement
(TEPA) on 10th March between India and EFTA (European Free Trade Association) countries
is a real breakthrough for India on building trade relations. This is because
India has been negotiating an EFTA with European Union (EU) since 2007, which
is yet to conclude. In the meantime, India managed to sign it with four EFTA
countries which are small in population but strong in economy. These countries
participate in European Single Market of EU and part of the Schengen area. The
countries are Switzerland, Iceland, Norway and Liechtenstein.
Negotiations for a trade agreement began with EFTA in 2008,
one year later than that with EU. And it has been concluded earlier. The
negotiators of EFTA felt that the agreement signifies success as it precedes
any such agreement with the EU or any developed economy. The Indian side was
led for the last 10 years by Minister of Commerce and Industry, Food and
Consumer Affairs and Textiles, who sounded euphoric about the agreement. He
said, “TEPA is a model and ambitious trade agreement”.
It has created a couple of firsts. For the first time,
India is signing an FTA with four developed countries which constitute a
powerful economic bloc in Europe. “For the first time in history of FTAs
binding commitment of 100 billion USD investment and 1 million direct jobs in
the next 15 years has been given. The agreement will give a boost to Make in
India and provide opportunities to young and talented workforce. The agreement
will provide a window to Indian exporters to access large European and global
markets”.
Beginning in 2008, negotiations covered 13 rounds and then
were put on hold in November 2013. They were resumed after gap of 10 years last
year in October. And in less than six months, the TEPA was signed. Prime
Minister Narendra Modi commended the agreement in a written message, “Despite
structural diversities in many respects, our economies possess
complementarities that promise to be a win-win situation for all nations”. This
feeling was reciprocated by one of the top negotiators, Swiss State Secretary
for Economic Affairs, Helene Budliger Artieda, “There was a sense that we could
really have a fair and balanced deal, which would the win-win …. five times win
for all five parties.” (four EFTA countries plus India).
The agreement consists of 14 chapters. It focuses on market
access related to goods, rules of origin, trade facilitation, technical
barriers to trade, investment proportion, market access to services, intellectual
property rights, trade and sustainable development and many other legal
provisions. Significantly, the agreement will see considerable tariff
reduction, increase in market access and simplification of customs procedure. Most
of all, the investment of 100 billion USD is the highlight of the agreement
which provided the breakthrough moment.
Prime Minister Modi noted that the global leadership of
EFTA countries in innovation and R&D across diverse sectors like digital
trade, banking and financial services and pharma will open up new doors of
collaboration. Investment in these sectors will open up great opportunities for
India. This is the second such full-fledged FTA signed after India’s agreement
with the United Arab Emirates.
Indian industries have welcomed the trade agreement. The
Director General of Confederation of Indian Industry opined that the agreement
will yield multi-dimensional gains to Indian industries. He said, “It will
elevate trade, promote technology, knowledge transfer, and encourage
investment”. He added that improved market access in EFTA countries for Indian
goods will boost India’s export potential and greatly expand employment
opportunities.
As noted, the negotiations concluded in a fast-track mode
and the deal was signed just a few days, ahead of the announcement of dates for
Lok Sabha elections in India. However, the political-electoral angle in the
negotiations could not be attributed to EFTA countries although the incumbent
Union Government could dangle it to the electorate as a prize they have
secured. A question was asked to the Swiss State Secretary by an Indian
journalist, “Did you think this deal would happen before Indian elections?” Her
answer was candid. She said that one can never be 100 per cent sure in such
negotiations involving five countries. “But I really felt sincere interest,
trust and friendship between India and EFTA negotiators”. She pointed out that
the agreement on investment chapter was a breakthrough moment.
According to TEPA’s Chapter 7 that deals with investment
promotion and cooperation, both sides are agreed that first tranche of
50-billion USD will be invested within 10 years and another 50 billion in the
next five years. The EFTA side clarified in terms of riders that it is not the
states that make the investment; it is the companies which do. Norwegian Trade
Minister said in a press conference that, “It is about creating the right
environment, speaking to our companies and then tracing and tracking
development. It is also recorded that if the investment is not made within 15
years with a three-year grace period and another two years in negotiations,
India will be entitled to withdrawing some of its trade concessions.
It is the investment that will define the parameters of
success. India should do everything possible to facilitate that investment.
Many investors know that India is a big market but are equally aware of the
bottle necks. It is for New Delhi to clear such impediments and make it investment
friendly. Likewise, India’s export regime has to improve. Timely clearance of
goods by the Indian Custom Department is necessary. The timelines for delivery
have to be adhered to by the Indian companies. The quality check is another
issue that Indian exporters must be wary of. In my research on India-EU trade,
these issues were pointed out by EU officials.
The agreement will come into force after the ratification
by EFTA countries expected by the end of this year. Switzerland, the biggest of
the four, will possibly bring the agreement for ratification by Swiss Parliament
in the autumn session. So, by the end of the year, the agreement should come
into force. Other countries which have a different time span for ratification
process would also complete it by the end of the year.
The agreement is indeed a momentous occasion for Indian
trade despite the murmur on timing of the agreement which is just before the
elections. It is an achievement that Indians should be happy about. This will
perhaps open up of the possibility of such agreements in general with other
developing countries and hasten the process with the EU in particular. New
Delhi should set an example by successfully implementing the TEPA.---INFA
(Copyright, India News & Feature
Alliance)
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CAA, Simultaneous Polls: AMMO FOR OPPOSITION STATES, By Insaf, 16 March 2024 |
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Round The States
New Delhi, 16 March 2024
CAA, Simultaneous Polls
AMMO FOR OPPOSITION STATES
By Insaf
The
timing of the CAA notification and Ram Nath Kovind panel’s report recommending
‘one nation, one election’, other than details of electoral bonds, has further
ignited the poll arena for Battle 2024. Opposition-ruled states have upped the
ante against BJP and Modi team, though it remains to be seen whether it will
fire up the voter. Chief Ministers of West Bengal, Kerala, Tamil Nadu and Delhi
have resolved to oppose it, accusing the BJP of resurrecting the ‘divisive’ Act,
four years since it was passed only to manipulate religious sentiments for
political gains. Specifically, Kerala Cabinet has decided to move the Supreme
Court by asking Advocate General to initiate action against it without further
delay. The firm No says Chief Minister Vijayan is because it treats Muslim
minorities as second-class citizens. In West Bengal Mamata Didi warns
the Act could be a precursor to implementation of the NRC across the country
and must be opposed. In BJP-ruled Assam, protests are hotting up with police
warning of strict action. Union Home Minister Amit Shah is at pains to say, ‘Indian
Muslims needn’t worry as CAA won’t impact their citizenship…Modi has delivered
on his promise.’ Will the top court allow him to fulfil it?
‘One
nation, no election…’ Congress’ reaction to the report recommending holding of simultaneous
polls in the country, may turn out to be good campaign material. Here too,
Opposition parties are in sync voicing serious concern since Thursday last,
since the report was submitted to President Murmu. “The prime minister’s
objective is very clear. He’s going around asking for a clear majority, 23rd
majority, 400 seats…They want to completely dismantle Constitution’, says the
grand old party. It’s ally in Maharashtra, Shiv Sena (UBT) asserts the concept
was a move towards dictatorship; the AIMIM termed the bid a “…frequent
elections keep governments on their toes… they will no more have to worry about
people’s fury for five years…It (the move) will convert India into a one-party
state.” In UP, SP said “in a country like ours, ‘one nation, one election’
seems impossible’.
The AAP
warns it would ‘marginalise regional parties, encourage dominance of national
parties, and result in a presidential form of government”. The BJP is among 32
other parties, mostly its NDA partners supporting the recommendation, as it
will help save resources, spur development and social cohesion..’ In the first
stage, elections for LS and all state assemblies can be held together and in
the second, civic polls and panchayats will be synchronised with these within
100 days. Critically, term of Assemblies elected after the first sitting of
newly-elected Lok Sabha will be cut short till the next general elections to
ensure the cycle is not disturbed! Worrisome for regional players as the
recommendations could just as well come into force in five years—2029!
* * * *
Haryana’s
Surprise
Haryana
springs a big surprise. On Tuesday last, Chief Minister Manohar Lal Khattar
suddenly resigned with his entire Cabinet, by evening he was replaced by Nayab
Singh Saini and 24 hours later BJP government comfortably won the trust vote in
Assembly. Clearly, the change of guard was orchestrated with an eye on ensuing
elections, both in the State and Centre, with the anti-incumbency factor weighing
against Khattar’s 2-term leadership. The BJP also took serious note of Congress’
OBC thrust and thus chose Saini, an OBC to counter its opponent. This apart, it
opted for dumping Dy Chief Minister Dushyant Chautala and his JJP, which with
its 9 MLAs had helped form the alliance government after a fractured verdict in
2019. This, as JJP was asking for two seats for LS polls, whereas big brother
was willing to give only one. However, the parting of ways doesn’t quite gel,
as JJP issued a whip asking its MLAs to remain ‘absent’ during the trust vote!
Said Congress: “We used to hear a whip issued by a party asking its MLAs to
ensure their presence during a voting. It’s first time we are hearing a party
has issued a whip to its members to remain absent… A fixed match is being
played by both BJP-JJP”. The INLD response was on similar lines. Be that as it
may, BJP has plans for Khattar as he’s given a Lok Sabha ticket and that it can
shift gears to remain on the road to victory.
* * * *
Tripura
U-Turn
For or
against the tribals, is a question doing the rounds in Tripura. Tipra Motha
chief and royal scion-turned-politician Pradyot Kishore Manikya Debbarma
has stirred a hornet nest by joining BJP-IPFT alliance, four days after he signed
a tripartite pact with Centre and state government and a month after he was talking
to Congress to cobble an anti-BJP coalition! Expectedly, Congress and CPM
accuse him of ‘playing with tribals’ as all along he’s been demanding a Greater
Tipraland state for tribals but instead signed a ‘bogus piece of paper’
(agreement) which tries to sell Tiprasa (tribals of Tripura) and looks after
his own interests. Pradyot hits back: both these parties neglected tribals’ rights
while in government, didn’t lend support during anti-CAA protests and ‘it’s
they who prioritised political interests over tribal welfare.’ He also explains
his joining government is to ‘ensure proper implementation of accord’; two of his
MLAs shall join Cabinet; and importantly, his sister, who he managed to get a
BJP ticket for East Tripura ST-reserved constituency ‘she shall be needed in Delhi
to further its progress.’ Time will tell.
* * * *
Bengaluru’s
Water Woes
Don’t use
of potable water for cleaning vehicles, gardening, building construction,
fountains, swimming pools, entertainment purposes other than as drinking water
in cinema halls and malls, is Bangalore Water Supply and Sewerage Board’s
warning to residents in IT hub Bengaluru. Else, pay a fine of Rs 5,000 in case
of violation. Indeed, the Karnataka government is busy grappling with water
woes as concerns grow over Cauvery water supply and depleting groundwater
levels. Steps include, ordering huge tankers from adjoining towns; take over
private borewells (50% of borewells have dried up); fill up the drying lakes
with 1,300 million litres per day of treated water to replenish groundwater
sources; install filter borewells and construct water plants using an
innovative technology near the restored lake beds to supply water after
testing, etc. Too little too late, may be a right reaction. Undoubtedly, it’s
the unplanned urbanisation and over concretisation in the city which needs to
be dealt with. Blaming climate change doesn’t hold water! ---INFA
(Copyright, India News & Feature Alliance)
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Hospital Treatment Rates: SC BALM FOR COMMON MAN, By Dhurjati Mukherjee, 13 March 2024 |
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Open Forum
New Delhi, 13 March 2024
Hospital Treatment Rates
SC BALM FOR COMMON MAN
By Dhurjati Mukherjee
That health is a neglected
sector in India has been echoed by experts over the years, but the government
has not taken adequate measures to ensure that benefits reach all sections of
society. It is, in this connection, that the very recent Supreme Court order
merits special attention. The order directed “all
hospitals and clinical establishments must display rates charged for each type
of service provided and facilities available for the benefit of patients at a
conspicuous place in the vernacular as well as in the English language and
charge rates for each type of procedure and service within the range of rates
determined and issued by the Centre from time to time, in consultation with the
state government”.
The
bench of Justices BR Gavai and Sandeep Mehta, hearing a PIL by the NGO ‘Veterans
Forum for Transparency in Public Life,’ boldly stated, “If the Union government
fails to find a solution, then we will consider the petitioner’s plea for
implementing CGHS-prescribed standardised rates.” The PIL sought clarity on
medical expenses and urged the Centre to determine the fee chargeable to
patients based on Rule 9 of the Clinical Establishment Rules 2012 on which the
judgment would stand out to be a landmark order.
It is
indeed distressing to note that health has become big business in the country
and the private nursing homes charge rates that even the middle class finds
difficult to pay. There is no regulation by the state governments and the
Centre is totally indifferent to the continued fleecing of the population. The
political class has never said anything regarding the matter and there are
virtually no protests as the nursing homes owners are rich and powerful.
Though
some of the state governments have given land at subsidised rates to these
nursing homes – some also call them hospitals – they are supposed to reserve
some beds for the poor and the economically weaker sections, but this is not
done, and the state governments do not check whether these health centres actually
treat the poor. It has to be accepted that the ruling dispensation at the
Centre favours the rich, but this is also true of most state governments.
The
question that comes up is how will the poor get proper treatment? There is no
survey undertaken in the country to determine how many poor people are not
properly diagnosed and, as such, treatment is not received by them. Moreover,
costs of treatment in the private sector are quite high, specially of
life-threatening diseases. But though these are considered life-threatening in
the country, this is not so in the Western world as also in the emerging
economies.
It is a
well-known fact that the conditions of rural health centres and hospitals run
by the government are in a pitiable state of affairs with very few specialists
and even general doctors not being able to give proper attention to the huge
number of patients. Moreover,equipmentis lacking and specialised treatment, in
most cases, is not possible.
Some
experts question that there is no proper survey to find out how much people
from the lower segments of society have to spend to get proper treatment, how
many of them can really afford this treatment, how much they have to travel to
avail of this treatment? It has been found that poor people have been found to
sell their fixed assets like land, even part of building, apart from jewellery
etc. and taking huge loans at high rates of interest, mostly from moneylenders.
Though
such order for standardisation of rates should have been taken decades back to
prevent health being treated as a source business, the present order, if acted
on seriously, would greatly benefit the common man. One cannot deny that health
facilities must improve in all parts of the country, specially in the backward
districts, and this can only happen when facilities are available at affordable
rates.
It is
worth referring to a World Health Organization (WHO) report which rightly
highlighted the fact that with countries reducing investments in health after
the Covid outbreak does not augur well as health security is complementary to
economic security. To address gaps and prepare for the next pandemic, the
regional director of Southeast Asian region of WHO stressed on investments and
strengthening six pillars of health systems –service delivery, health
workforce, access to medical products, vaccines and technologies, health
information systems, and financing backed by political commitment.
The
government proposal of setting up hospitals in PPP mode in select underserved
districts has not been implemented as business houses are not interested to set
up such centres in remote rural areas. It was envisaged that medical colleges
would be attached to district hospitals in PPP mode to address shortage of
qualified medical doctors. However, the Indian Medical Association (IMA)
expressed concerns by public health experts that inviting the private sector to
manage public hospitals was tantamount to backdoor corporatisation of civil
hospitals and this would not help the poor as the mass would not get benefits
at affordable rates.
A recent
development that should be welcomed is the initiative by the insurance
regulator to allow subscribers to avail cashless treatment at any private
hospital or nursing home, irrespective of whether it is part of an insurer’s
network or not. Earlier to get treated in such a nursing home, which was not
part of an insurer’s network of facilities, patients had to pay the full amount
and go through the cumbersome process to claim reimbursement. This would
undoubtedly help a major section of the middle class, specially the salaried
who have such insurance facilities.
It goes
without saying that health is critical to human well-being and, as such, there
is need to look into the whole issue and evolve an effective solution in the
matter. The judiciary has done the right intervention though this was needed
much earlier. Now it is the prerogative of the Centre to direct the states to
check the functioning of private nursing homes and hospitals and ensure not
just standardisation of rates but see to it that at least 20 percent of beds
are reserved for the poor from whom just the actual costs of surgery and
minimum doctor’s fees are recovered.
Only
talking of ‘health for all’ has no meaning unless effective steps are taken by
the Centre and the states. Maybe some time, the judiciary will also intervene
and direct the states to ensure that the poor citizens of the country are not
deprived of basic health facilities. As socio-economic development is
intrinsically linked to better health, the present landmark order, if adhered
to, will bring about a drastic change in the functioning of private health
centres.---INFA
(Copyright, India News & Feature Alliance)
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