Category: National

Economic stimulus package has turned out to be an empty promise’

Finance Minister Nirmala Sitharaman displayed “arrogance, ignorance and insensitivity” while giving out details of the economic stimulus package that has turned out to be a jumla (empty promise), the Congress said on Thursday.

While the party’s chief spokesperson Randeep Surjewala called the stimulus package a jumla, senior leader Ahmed Patel said, “It is an empty package wrapped with speeches since the last three days.”

Addressing a joint online press conference, Lok Sabha member Manish Tewari and party spokesperson Supriya Shrinate said the humanitarian crisis surrounding the migrant workers is a defining image of the coronavirus crisis in India, but the government had fallen woefully short in addressing it.

“The image of our migrant workers walking to reach the safety of their homes will haunt us for a long time. Was it not your responsibility to answer what are you doing about them?” Mr. Tewari asked the government.

‘Bamboozle people’

“You are trying to bamboozle people by throwing big numbers at people. We don’t have words to express our anguish and our heads hand in shame,” Mr. Tewari said, adding that the government had earmarked only ₹3,500 crore of the ₹20 lakh crore stimulus package.

Ms. Shrinate said that the government was trying to solve a demand side issue with supply side tools.

“All the government has done is announce loan melas (fairs) for different sets of people. Where is the assistance?” asked Ms. Shrinate.

She added that only direct cash transfers on the lines of Congress’ NYAY minimum guarantee scheme to the bottom 13 crore households would have helped the poor cope with the crisis.

“MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) wages have been revised annually for a decade now. Today’s FM (Finance Minister) announcement no big deal. Nothing on what’s urgently needed: 1. Provide wages for month of April. 2. Increase no. of MGNREGA days to 200. Ironic that those who ridiculed MGNREGA now rely on it,” tweeted former Union minister Jairam Ramesh.

Rahul tweets

Former Congress chief Rahul Gandhi tweeted they would make their voices reach the government.

“here is dense darkness and times are difficult. Have courage, all of us are standing for the safety of all of them. We will ensure that their screams reach the government and they get the help they deserve. They are not the ordinary public of the country, they are the flagbearers of the country’s self-respect. We will never let them bow down,” Mr. Gandhi said in a tweet in Hindi.

With inputs from The Hindu

Outfit has re-emerged as the core of a new, yet unfinished, constellation of power

There is little doubt that after a gap of nearly two decades, Afghanistan is undergoing another major power overhaul. Taliban, ousted by the post-9/11 U.S.- led military campaign, has re-emerged as the core of a new, yet unfinished, constellation of power.

Unlike its previous avatar in the mid-nineties, when it was birthed by Pakistan and nurtured by Saudi Arabia and the United Arab Emirates with covert support from the United States, Taliban 2.0 is manifestly different.

Except India, former heavyweight supporters of the Northern Alliance — a non-Pashtun coalition of ethnic groups that took over from Taliban — chiefly Iran and Russia, have significantly invested in the rebranded Taliban. This has eminently suited the Taliban, which is yearning for recognition as a symbol of Afghan nationalism, rather than a safehouse of international terror groups, including Al-Qaeda, the architect of the bombing of the twin-towers in New York.

There is strong evidence that the Taliban of 2020, unlike the past, is enmeshing Afghanistan’s ethnic minorities in the new power coalition emerging in Kabul, rather than relying mostly on the majority Pashtuns.

Regional influencers

To impart a more composite and pluralistic image, the Taliban is relying significant on regional influencers — particularly Iran, Russia and Uzbekistan, signalling that the era of Pakistan’s virtual monopoly in running the pre-2001 show in Kabul is over. Yet, Islamabad, leveraging its deep assets, continues to exercise considerable influence in the Af-Pak badlands, despite the Taliban’s attempt to bond with regional powers.

The Taliban is dependent on Iran to gain influence among ethnic Hazaras, who have shared deep historical and cultural ties with Tehran. Geographically, the Hazaras, who share Iran’s Shiite bonds, mainly reside among the Koh-i-Baba mountains on the western fringe of the Hindukush range in central Afghanistan.

Besides, Iran exercises leverage over Afghanistan because of Chabahar port. In the future, it is unlikely that any new dispensation in landlocked but resource-rich Afghanistan would like to forego the option of using Chabahar — a port on the Indian Ocean — for its international trade, despite the attraction of Pakistani ports of Karachi and Gwadar, the starting point of the China Pakistan Economic Corridor (CPEC).

The Hindu reported earlier that in an April 22 Taliban video which features the group’s newly appointed northern district Governor Mawlawi Mahdi Mujahid, the Hazara Shia cleric incites his brethren to fight against the “Jewish and Christian invaders” alongside the Taliban. The video also directly addresses the “Shia brothers and religious scholars in Qom” — a reference to the Shia seminary city, 140 km south of Tehran.

Iran, on its part, has been regularly engaging with the Taliban. An Iranian Foreign Ministry statement earlier this month detailed a telephonic conversation between Iran’s special representative on Afghanistan Mohammad Ebrahim Taherian with the Taliban’s political leaders regarding the ongoing political deadlock in Afghanistan between President Ashraf Ghani and former Chief Executive Officer Abdullah Abdullah. “The two sides also exchanged views on future developments in inter-Afghan negotiations and comprehensive efforts to prevent the spread of the coronavirus in Afghanistan,” the statement added.

Diplomatic sources told The Hindu that the Taliban is now well on its way to appointing Rashid Dostum as “field marshal” in the new dispensation that is yet to emerge but taking shape behind the scenes. A former Vice-President, Gen. Dostum, is an ethnic Uzbek with a stronghold in northern Afghanistan, not far from the Amu Darya on the border with Uzbekistan. Recently, he publicly opposed President Ghani following the controversial national elections.

International legitimacy

Diplomatic sources point out that it is only a matter of time before Taliban gains international legitimacy. “The five permanent members would first like to ensure that the Taliban, on the ground, rejects presence of international terror groups, such as Al-Qaeda and the Islamic State, in Afghanistan. That can follow the removal of UN sanctions and the eventual mainstreaming of the group,” a diplomat told The Hindu. Major global powers are also concerned about the presence of Haqqani network, Islamic State-Khorasan (IS-K), Islamic Movement of Uzbekistan (IMU), the Eastern Turkistan Islamic Movement (ETIM) and Chechen fighters, among many others.

Observers say that while remaining vigilant, India may have no option but to consider a conditional engagement with the Taliban. “India’s Taliban policy can’t narrowly focus on baulking Pakistan alone. Like other powers, the underlying motive should be to view from a wider regional and global perspective — fostering connectivity, trade, protecting environment and countering terrorism,” says P. Stobdan, former ambassador to Kyrgyzstan, in a conversation with The Hindu. He acknowledged that “we can’t be sure whether the Taliban, as a legitimate ruler of Afghanistan, will make or break the entire chain of multiple Jihadist network created by Al-Qaeda and IS”.

The former diplomat pointed out that both Al-Qaeda and IS’s Ansar Ghazwa’tul Hind have footings in Kashmir since 2017. “The Haqanni Network is another source of concern, especially as Pakistan may try to position Sirajuddin Haqqani, its strategic asset, in a Taliban-led government in Kabul.”

With inputs from The Hindu

A video on cyberattacks and how interpol is teaming up with law enforcement agencies across the world to launch an awareness campaign on cyberthreats

The International Criminal Police Organisation has launched an awareness campaign on cyber threats during the COVID-19 outbreak. The campaign is taking place from May 4 to May 31.

It is in coordination with law enforcement agencies across the world. Basic cyber hygiene advice is being provided through the international network. This is to ensure that individuals and businesses are equipped with the knowledge to protect their systems and data.

Cybercriminals are capitalising on the anxiety caused by COVID-19. They use tools like data-harvesting malware, ransomware, online scams and phishing.

The cybersecurity industry has seen a considerable increase in the number of targeted cyberattacks since the virus outbreak began.

Cybersecurity agencies have seen a surge in large-scale ‘password spraying’ campaigns against healthcare bodies and medical research organizations. Malicious web domains use words like ‘covid’ and ‘corona’.

Phishing emails promise sale of key supplies, while critical infrastructure and hospitals face ransomware attacks.

The UK and US have issued a joint advisory against cyber-spies that are targeting the health sector. While over 9,000 coronavirus-themed attacks were noticed in India between February 2 and May 2, according to a Microsoft executive.

With inputs from The Hindu

Finance Minister Nirmala Sitharaman announces ₹20 lakh crore economic package.

Finance Minister Nirmala Sitharaman held a press conference on Wednesday.

She said that Prime Minister Narendra Modi laid out a comprehensive vision yesterday. “That was laid out after wide and deep consultation, with several sections of society, and different levels of govt up to the PM. Essentially, this is to spur growth and to build a very self-reliant India (Atmanirbhar Bharat) — which will be resting on 5 important pillars — economy, infrastructure, technology, demographics and demand.”

Mr. Modi on Tuesday had announced an economic stimulus package for ₹20-lakh-crore (estimated at 10% of the GDP), with a clearly defined leap towards economic reforms that will, in his words, lead to Atmanirbhar Bharat, or a self-reliant, resilient India.

Ms. Sitharaman said she will address issues of land, labour, liquidity and law. The intention of the Ministry is to build local brands, and integrate them into global supply chain and not meant to look inwards and cut India to be an isolated country, but to continue contributing to the globe.

“Self-reliant India does not mean cutting off from rest of the world. Many reform driven steps are successfully taken by this govt, from 2014-19. For the poor, brought in DBT based reforms, based on Jan Dhan, Aadhaar and mobile technology, which has helped deliver to migrants now,” she added.

The Finance Minister listed a number of reforms.

Agriculture reforms: PM Fasal Bima Yojana, PM Kisan Yojana, New Fisheries department, Krishi Sinchayee Yojana

Business reforms: PSB clean-ups and recpitalisation, IBC reforms, GST reforms, FDI reforms, ease of doing business, electricity and airport reforms, cleaning up coal mine sector.

“14 lakh taxpayers benefited from clearing of refund dues”

The FM said that the announcements are based on the existing foundation of reforms.

“Within hours of lockdown, PMKGY was announced. So far, ₹18,000 crore worth grain and rice transfers have happened, and also, pulses. Ration also distributed to non-card-holders. Ujjwala gas connections were given, and cash transfers were made to Jan Dhan accounts,” she said.

“Changing definition of MSME in favour of the MSMEs”

₹3 lakh crores collateral-free automatic loans for businesses, particularly MSMEs.

Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit, she said, announcing parts of the economic package.

For stressed MSMEs, Government to facilitate provision of ₹20,000 crore subordinate debt for equity support. 2 lakh MSMEs likely to benefit.

For MSMEs who may be doing viable business but need handholding because of current situation, the govt announces ₹50,000 crore equity infusion via ‘fund of funds’. This will be operated through ‘mother fund’ and a few ‘daughter funds’.

“The MSME definition has been revised. Investment limit will be revised,” Ms. Sitharaman said.

Press Information Bureau tweeted this image showing the revised definitions.

Definition of MSMEs gets a revision, Investment limit to be revised upwards, additional criteria of turnover also being introduced#AatmanirbharBharat pic.twitter.com/euRNgiPJeB

— PIB India (@PIB_India) May 13, 2020

The Minister listed the other parts of the economic stimulus package.

For govt procurement, global tenders will be disallowed for tenders up to ₹200 crore. Within the next 45 days, all pending payments from government and CPSEs to MSMEs will be cleared.

The earlier announced EPF support for businesses and employees extended till August 2020. This will provide liquidity relief of ₹2,500 crore. EPF contribution for all businesses and workers reduced to 10% from 12% for next three months.

For NBFCs/MFIs, govt to launch ₹30,000 crore special liquidity scheme. Discoms today are facing unprecedented challenge. In all states they are facing serious crisis.

We are making a one time provision by PFC and REC to infused ₹90,000 crore liquidity for discoms against receivables.

All contractors engaged by the govt will be given an extension of up to 6 months.

To help destress developers, the urban development ministry will issue advisory to states and UT, where in their regulatory authorities be asked to extend registration and completion date for all registered projects expiring on or after March 25, suo moto by 6 months.

TDS and TCS rates cut 25% for 2020-21. Will release liquidity of ₹50,000 crore for non-salaried tax payers.

PTI adds:

Prime Minister Narendra Modi’s pledge of a total spending of ₹20 lakh crore to weather the fallout of coronavirus pandemic is among the largest economic stimulus package announced by nations around the world.

Mr. Modi’s Atma-nirbhar Bharat Abhiyan or Self-reliant India Mission is about 10% of India’s GDP in 2019-20 and would rank behind Japan, the US, Sweden, Australia and Germany.

With inputs from The Hindu

Finance Minister Nirmala Sitharaman announces ₹20 lakh crore economic package.

Finance Minister Nirmala Sitharaman held a press conference on Wednesday.

She said that Prime Minister Narendra Modi laid out a comprehensive vision yesterday. “That was laid out after wide and deep consultation, with several sections of society, and different levels of govt up to the PM. Essentially, this is to spur growth and to build a very self-reliant India (Atmanirbhar Bharat) — which will be resting on 5 important pillars — economy, infrastructure, technology, demographics and demand.”

Prime Minister Narendra Modi on Tuesday had announced an economic stimulus package for ₹20-lakh-crore (estimated at 10% of the GDP), with a clearly defined leap towards economic reforms that will, in his words, lead to Atmanirbhar Bharat, or a self-reliant, resilient India.

Ms. Sitharaman said she will address issues of land, labour, liquidity and law. The intention of the Ministry is to build local brands, and integrate them into global supply chain and not meant to look inwards and cut India to be an isolated country, but to continue contributing to the globe.

“Many reform driven steps are successfully taken by this govt, from 2014-19. For the poor, brought in DBT based reforms, based on Jan Dhan, Aadhaar and mobile technology, which has helped deliver to migrants now,” she added.

The Minister listed a number of reforms.

Agriculture reforms: PM Fasal Bima Yojana, PM Kisan Yojana, new fisheries department, krishi sinchayee yojana

Business reforms: PSB clean-ups and recpitalisation, IBC reforms, GST reforms, FDI reforms, ease of doing business, electricity and airport reforms, cleaning up coal mine sector.

“All that we are announcing now is based on this existing foundation of reforms.

Within hours of lockdown, PMKGY was announced. So far, 18,000 crore worth grain and rice transfers have happened, and also, pulses. Ration also distributed to non-card-holders. Ujjwala gas connections were given, and cash transfers were made to Jan Dhan accounts,” she said.

With inputs from The Hindu

PTI

Civil Aviation Minister Hardeep Singh Puri said on Wednesday that 30,000 Indians will return from 31 countries on 149 flights between May 16 and 22, the duration for the second phase of the Vande Bharat Mission.

During the first phase of the Vande Bharat mission, Air India and its subsidiary Air India Express are scheduled to operate a total 64 flights between May 7 and May 14 to bring 14,800 Indians from 12 countries on a payment basis.

India has been under lockdown since March 25 to curb the spread of the novel coronavirus, which has infected more than 74,200 people and killed around 2,400 people in the country till now.

All scheduled commercial passenger flights have been suspended for the lockdown period.

Move comes after COVID-19 outbreak in Arthur Road jail

In a move to decongest prisons in Maharashtra, especially after the outbreak of COVID-19 in Arthur Road jail, which has infected at least 184 prisoners and 26 officials, a high-powered committee on Monday decided to release 50% of the total 35,239 inmates across prisons in the State.

3-member committee

The committee consists of Justice A.A. Sayed of the Bombay High Court, Additional Chief Secretary (Home) Sanjay Chahande, and Director-General of Prisons S.N. Pandey. Mr. Chahande told The Hindu that prisoners would be released in due course of time. He said those booked under legislations such as the Maharashtra Control of Organised Crime Act, the Maharashtra Protection of Interest of Depositors (MPID), the Unlawful Activities Prevention Act and others were exempted from consideration.

The order, a copy of which is with The Hindu, does not state the time frame within which the prisoners will be released, nor does it reveal the category of prisoners to be released.

Overcrowded jails

The move is contrary to the March 25 decision of the committee to release 11,000 prisoners. Since March 25, more than 5,000 prisoners having minor or moderate charges against them have been released.

But this was not sufficient as courts were not granting bail to many accused. The virus outbreak at Arthur Road jail had seen unrest growing on its premises. Inmates have been protesting for their release, particularly because the jail, with a capacity to hold just 800 prisoners, was overpopulated with 2,700 prisoners. The jail authorities had also expressed their inability to handle an outbreak as early as March.

The Superintendent of Arthur Road jail, in a letter to the courts, had categorically stated that it would be impossible to maintain physical distancing in the jail, considering it had 2,700 inmates. Despite the letter, the court has not only refused bail to prisoners having serious ailments, but also refused bail to a person infected with COVID-19.

Petition rejected

The committee has rejected a petition filed by advocate S.B. Talekar to release prisoners charged or convicted under the Special Acts.

“In any event, the prisoners charged/convicted under the Special Acts, including the MPID Act, cannot claim to be released from prison as of right. It is required to be noted that the offences under the MPID Act are against a large number of victims who are mostly poor depositors, and whose interests are required to be safeguarded and recoveries made from properties,” said the committee in its order.

The committee said, “It is true that so far as MPID Act is concerned, there are no restrictive provisions for grant of bail. However, it would be necessary to look at the facts on case to case basis by a judicial mind before releasing such prisoners, who are generally known to be more resourceful, after considering the likelihood of them absconding and/or tampering with evidence or witnesses and/or blocking the recoveries to be made from the properties and in a given case it would be necessary to secure.”

The committee, however, clarified that ‘it would always be open to such prisoners to apply for regular bail which would be decided in accordance with law’.

With inputs from The Hindu

There was some improvement last week after a pick-up in agricultural activity and the re-opening of businesses in the rural parts of the country, according to data from the Centre for Monitoring Indian Economy.

Job losses during the lockdown have been disproportionately high among younger Indians, with six crore people between the ages of 20 and 39 losing jobs in April, according to data from the Centre for Monitoring Indian Economy (CMIE).

The wider employment situation has shown some improvement in the last week, on the back of a pick-up in agricultural activity and the re-opening of businesses in rural India. The week ended May 10 recorded a jobless rate of 24% in comparison to a record high of 27% the previous week. Urban unemployment stood at almost 28%, while it was 22.3% in rural areas. However, the demographics of job loss are a major cause of concern.

More than 2.7 crore young people in their 20s lost their jobs last month, along with 3.3 crore people in their 30s, said CMIE managing director and chief executive Mahesh Vyas.

‘Long-term repercussions’

“This has serious long-term repercussions. It is during this age that young India builds its career in the hope of a bright future,” he said. “If the career of this cohort is disrupted or postponed by even a year it will have to compete with the new cohorts joining the labour force after them — arguably, for fewer jobs. Young India will not be able to build the savings it will require later in life.”

Young aspiring Indians in the age group of 20-24 years accounted for 8.5% of total employed people in the country in 2019-20, but 11% of those lost jobs. Most of these young people have just entered the labour markets, and 3.4 crore of them were working in the last financial year. Only 2.1 crore still had jobs in April.

Debt delinquency likely

These job losses could raise debt delinquency and impact household savings, said Mr. Vyas. “While households may well conserve cash during these times, the loss of jobs among the young deprives households of the extra cash that is mostly saved for either buying a house or durables or for retirement,” he added.

Noting that 12 crore jobs had been lost because of the lockdown, Mr. Vyas said the window of the benefit of doubt in favour of a lockdown was closing. “Claims that the pandemic can be devastating is countered by the fact that the lockdown is already devastating,” he said, adding that the government’s dithering over a fiscal package meant that unlike in the United States where the state provided assistance to the jobless, Indians could not afford to remain unemployed.

With inputs from The Hindu

“Should markets be opened? Should public transportation be allowed? What should be opened and what should not while maintaining social distancing and taking care of our health but also the health of the economy of the state,” the Delhi Chief Minister said

Chief Minister Arvind Kejriwal on Tuesday sought suggestions from the people of Delhi on relaxations and restrictions to be put in place during a probable extension of the national lockdown to contain the novel coronavirus.

At a digital press conference Mr. Kejriwal, who was part of a six-hour video conference with his counterparts from other states and Prime Minister Narendra Modi on Monday, asked the people of Delhi to send in their suggestions by 5 p.m. on Wednesday.

“The Prime Minister, at the video conference with Chief Ministers, asked for suggestions regarding the extension of the lockdown to be sent by May 15. Today, I am asking the people of Delhi for those suggestions,” Mr. Kejriwal said.

“Let me clarify, this is not voting but a call for suggestions. All the good suggestions will be discussed with experts, doctors which will form the Delhi government’s proposal to be sent to the Centre,” he said.

“Should markets be opened? Should public transportation be allowed? What should be opened and what should not while maintaining social distancing and taking care of our health but also the health of the economy of the state,” he added.

The chief minister asked citizens to send in their suggestions on the Delhi government IVR helpline number 1031, through Whatsapp on 8800007722 and via email to: [email protected]

With inputs from The Hindu