Why Electoral Bonds are Necessary

Following is the text of the Article written by the Union Finance Minister, Shri Arun Jaitley on Necessity of Electoral Bonds:

“India is the largest democracy in the world. However, despite strengthening various institutions for the last seven decades, India has not been able to evolve a transparent political funding system. Elections and political parties are a fundamental feature of Parliamentary democracy. Elections cost money. The round the year functioning of the political parties involves a large expenditure. Parties run offices throughout the country. Staff salaries, travelling expenses, establishment cost are regular expenditures of political parties. There has not been a single year where election either for the Parliament or State Assemblies have not been held. Besides expenditure of individual candidates, political parties have to spend money on election campaigns, publicity, tours, travels and election related establishments. These expenditures run into hundreds of crores. Yet there has not been a transparent funding mechanism of the political system.

The conventional system of political funding is to rely on donations. These donations, big or small, come from a range of sources from political workers, sympathisers, small business people and even large industrialists. The conventional practice of funding the political system was to take donations in cash and undertake these expenditures in cash. The sources are anonymous or pseudonymous. The quantum of money was never disclosed. The present system ensures unclean money coming from unidentifiable sources. It is a wholly non-transparent system. Most political groups seem fairly satisfied with the present arrangement and would not mind this status-quo to continue. The effort, therefore, is to run down any alternative system which is devised to cleanse up the political funding mechanism.

A major step was taken during the first NDA Government led by Shri Atal Bihari Vajpayee. The Income Tax Act was amended to include a provision that donations made to political parties would be treated as expenditure and would thus give a tax advantage to the donor. If the political party disclosed its donations in a prescribed manner, it would also not be liable to pay any tax. A political party was expected to file its returns both with the income-tax authorities and Election Commission. It was hoped that donors would increasingly start donating money by cheque. Some donors did start following this practise but most of them were reluctant to disclose the details of the quantum of donation given to a political party. This was because they feared consequences visiting them from political opponents. The law was further amended during the UPA Government to provide for “pass through” electoral trust so that the donors would park their money with the electoral trusts which in turn would distribute the same to various political parties. Both these reforms taken together resulted in only a small fraction of the donations coming in form of cheques.

In order to make a serious effort to carry forward this reform process, I had announced in my Budget Speech for the year 2017-18 that the existing system would be substantially widened and donations of clean money could be made to political parties in several ways. A donor could enjoy a tax deduction by donating in cheque. Donors were also free to donate moneys online to political parties. A cash donation to a political party could not exceed an amount of Rs.2000/-. In addition, a scheme of electoral bonds was announced to enable clean money and substantial transparency being brought into the system of political funding.

I do believe that donations made online or through cheques remain an ideal method of donating to political parties. However, these have not become very popular in India since they involve disclosure of donor’s identity. However, the electoral bond scheme, which I placed before the Parliament a few days ago, envisages total clean money and substantial transparency coming into the system of political funding. A donor can purchase electoral bonds from a specified bank only by a banking instrument. He would have to disclose in his accounts the amount of political bonds that he has purchased. The life of the bond would be only 15 days. A bond can only be encashed in a pre-declared account of a political party. Every political party in its returns will have to disclose the amount of donations it has received through electoral bonds to the Election Commission. The entire transactions would be through banking instruments. As against a total non-transparency in the present system of cash donations where the donor, the donee, the quantum of donations and the nature of expenditure are all undisclosed, some element of transparency would be introduced in as much as all donors declare in their accounts the amount of bonds that they have purchased and all parties declare the quantum of bonds that they have received. How much each donor has distributed to a political party would be known only to the donor. This is necessary because once this disclosure is made, past experience has shown, donors would not find the scheme attractive and would go back to the less-desirable option of donating by cash. In fact the choice has now to be consciously made between the existing system of substantial cash donations which involves total unclean money and is non-transparent and the new scheme which gives the option to the donors to donate through entirely a transparent method of cheque, online transaction or through electoral bonds. While all three methods involve clean money, the first two are totally transparent and the electoral bonds scheme is a substantial improvement in transparency over the present system of no-transparency.

The Government is willing to consider all suggestions to further strengthen the cleansing of political funding in India. It has to be borne in mind that impractical suggestions will not improve the cash denominated system. They would only consolidate it.”

PIB

Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya

Pradhan Mantri Sahaj Bijli Har Ghar Yojana –“Saubhagya” a new scheme was launched by the Prime Minister Shri Narendra Modi to ensure electrification of all willing households in the country in rural as well as urban areas on 25th September, 2017.

The following Frequently Asked Questions (FAQs) give a detailed view of objectives, features, expected outcomes and implementation strategy of the Scheme.

Qs. No. 1 What is the objective of this new scheme?

Ans. The objective of the ‘Saubhagya’ is to provide energy access to all by last mile connectivity and electricity connections to all remaining un-electrified households in rural as well as urban areas to achieve universal household electrification in the country.

Qs. No. 2 What all is included in the last mile connectivity and electricity connection to households?

Ans. The electricity connection to households include release of electricity connections by drawing a service cable from the nearest electricity pole to the household premise, installation of energy meter, wiring for a single light point with LED bulb and a mobile charging point. In case the electricity pole is not available nearby from household for drawing service cable, the erection of additional pole along with conductor and associated accessories shall also be covered under the scheme.

Qs. No. 3 Will electricity connection would be totally free of cost for every un-electrified households?

Ans. Yes. Poor households would be provided electricity connections free of cost. Other households would also be provided electricity connections under the scheme on payment of Rs.500 only which shall be recovered by the DISCOMs/Power Departments in ten (10) instalments along with electricity bills.

Qs. No.4 Does the free electricity connection also includes free power for consumption?

Ans. There is no provision in the scheme to provide free power to any category of consumers. The cost of electricity consumption shall have to be paid by the respective consumers as per prevailing tariff of the DISCOM/Power Deptt.

Qs. No. 5 The earlier programme of Government of India ‘24×7 Power For All’ has similar objective.? How is it different from this programme ?

Ans. ‘24×7 Power for All’ is a joint initiative with the states covering all segments of power sector i.e. Power generation, transmission and distribution, energy efficiency, health of Discom etc. to finalise State/UT specific roadmap and action plan to ensure 24×7 power for all in consultation with States/UTs. The Power for All documents contain details of various interventions required across the value chain of power sector.

Providing connectivity to all households is a prerequisite to ensure 24×7 power supply. Saubhagya is a schematic support to address the issue of energy access.

Qs. No. 6 In distribution sector, two major schemes; DDUGJY for rural areas and IPDS in urban areas are already under implementation- then what is the need for a new scheme?

Ans. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) envisage creation of basic electricity infrastructure in villages / habitations, strengthening & augmentation of existing infrastructure, metering of existing feeders / distribution transformers / consumers to improve quality and reliability of power supply in rural areas. Besides this, last mile connectivity and free electricity connections are also provided to BPL households only identified by the States as per their list. However, in villages which are electrified in past for a long period, many households do not have electricity connections for many reasons. Some of the really poor households do not have BPL cards but these households are not capable of paying applicable initial connection charges. There is also lack of awareness as to how to get connection or taking connection is not an easy task for illiterate people. There may not be electricity pole nearby and the cost of erection of additional pole, conductor is also chargeable from the households for obtaining a connection.

Similarly in urban areas, Integrated Power Development Scheme (IPDS) provides for creation of necessary infrastructure to provide electricity access but some households are not yet connected mainly on account of their economic condition as they are not capable of paying the initial connection charges.

Therefore, Soubhagya has been launched to plug such gaps and comprehensively address the issues of entry barrier, last mile connectivity and release of electricity connections to all un-electrified households in rural and urban areas.

Qs. No. 7 Is the cost of Saubhagya scheme over & above the outlay available under DDUGJY?

Ans. Yes, the cost of Saubhagya scheme i.e. Rs. 16,320 crore is over and above the investment being made under DDUGJY.

Qs. No. 8 What is the criteria for allocation of funds to the States?

Ans. Projects under the scheme would be sanctioned based on the Detailed Project Reports (DPRs) to be submitted by the States. There is no upfront allocation of fund under the scheme.

Qs. No. 9 How the scheme would be implemented in the entire country?

Ans. Project proposals shall be prepared by the State DISCOMs / Power Deptt. and sanctioned by an inter-ministerial Monitoring Committee headed by Secretary (Power), GOI. The electrification works under the sanctioned projects shall be executed by respective DISCOMs/Power Deptt. through turnkey contractors or departmentally or through other suitable agencies capable of doing this work as per norms.

Qs. No.10 What is strategy for achievement of target in a time bound manner?

Ans. In order to hasten the process of release of connections to households, camps would be organised in villages / cluster of villages for identification of beneficiaries using modern IT technology with a Mobile App / Web Portal. Application for electricity connections shall also be registered electronically and requisite documentation including photograph of applicant, copy of identity card and / or details such as mobile number/Aadhar number/bank account number etc. shall be completed on spot in the camps, so that connections are released at the earliest.

The Gram Panchayat / public institutions in rural areas shall also be authorized to collect application form, complete documentation and also for distribution of bills, collection of revenue and other activities, as applicable.

Qs. No.11 What would be estimated rise in power demand with the inclusion of 4 crore households in the electricity network?

Ans. Considering an average load of 1 KW per household and average uses of load for 8 hours in a day, there will be requirement of additional power of about 28,000 MW and additional energy of about 80,000 million units per annum. This is a dynamic figure. With the enhancement of income and habit of using electricity, the demand of electricity is bound to vary. This figure will also vary if the assumptions are changed.

Qs. No.12 What is the provision for households where it is not feasible to extend grid lines?

Ans. For households located in remote and inaccessible areas, solar power packs of 200 to 300 Watt and battery back with 5 LED light, 1 DC Fan, 1 DC power plug along with repair and maintenance for 5 years would be provided.

Qs. No.13 How many un-electrified households would be covered under Saubhagya.

Ans. There are about 4 crore un-electrified households estimated in the country of which about 1 crore BPL households in rural areas are already covered under sanctioned projects of DDUGJY. Thus, total of 300 lakh households, 250 lakh households in rural areas and 50 lakh in urban areas, are expected to be covered under the scheme.

Qs. No.14 Would the Scheme envisage providing amnesty to illegal consumers to come and register? Is that also something the Scheme targets?

Ans. The illegal connections need to be dealt with by the respective DISCOMs/Power Deptt in accordance with their rules/regulations in this regard. However, the scheme categorically provides that the defaulters whose connections have been disconnected shall not be given benefit of the scheme.

Qs. No.15 In what manner, the Scheme would be useful for people in their daily life?

Ans. Access to electricity definitely has positive impact on quality of life of people in all aspects of daily household chores and human development. Firstly , Access to electricity would substitute use of Kerosene for lighting purposes resulting in reduction in indoor pollution thereby saving people from health hazards. Further, electricity access would help in establishing efficient and modern health services in all parts of the country. Lighting after the sunset also provide a sense of enhanced personal safety especially for women and increase in post sunset social as well as economic activities. Availability of electricity will boost education services across all areas and quality lighting post sunset would facilitate children to spend more time on studies and move ahead further in prospective careers. Household electrification also increases the likelihood that women would study and earn income.

Qs. No.16 In what manner, the Scheme would facilitate economic growth and employment generation?

Ans. Substitution of use of Kerosene with electricity for lighting purposes would reduce annual subsidy on Kerosene and would also help reduce the import of petroleum products. Electricity in each home would provide improved access to all kind of communications like Radio, Television, Internet, mobile etc. through which everyone would be able to access all kind of important information available through these communication mediums.Farmers can access information about new and improved agriculture techniques, agro-machinery, quality seeds etc. resulting in significant increase in agriculture production and consequently increase in income. Farmers and youths can also explore the possibilities of setting up agro based small industries.

Availability of reliable electricity services would also facilitate establishment of new shops of daily use goods, fabrication workshops, flour mills, cottage industries etc. and such economic activities would generate direct as well indirect employment. Implementation of scheme itself would result into employment generation in view of the requirement of semi-skilled / skilled manpower for execution of works of household electrification. About 1000 lakh man-days works would be generated for implementation of the scheme.

The expenditure of over Rs 16,000 crore will create positive externalities which will further help in generating employment and benefit the economy.

Qs. No.17 Is there any plan for creating awareness amongst public at large about the Scheme so that more & more people are benefited from the Scheme ?

Ans. Government of India would take up publicity campaign through Radio, Print Media, Television, Sign Boards etc. Lack of awareness about procedure to obtain electricity connection including cost of connection, uses of electricity, cost of uses vis-à-vis Kerosene, benefits of using electricity (Direct & Indirect) etc. has been cited as one of the major reasons of slow progress on household electrification in various research studies.

Therefore wide multi-media campaign would be undertaken to make people aware of all aspects the Scheme. The DISCOM officials would also organise camps in rural areas for creating awareness about electricity as well as Saubhagya. School teachers, Gram Panchayat members, local literate/educated youth would also be associated in the awareness campaign.

PSBs Branches under Saansad Adarsh Gram Yojana

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO: 3014
ANSWERED ON: 05.01.2018

PSBs Branches under Saansad Adarsh Gram Yojana

AJAY (TENI) MISRA
Will the Minister of

FINANCE be pleased to state:-

(a) whether there is a mandatory provision for opening the Public Sector Banks (PSBs) branches under the Saansad Adarsh Gram Yojana, if so the details thereof;

(b) whether any notification has been issued/proposed to be issued by the Government in this regard, if so, the details thereof; and

(c) whether the Government is formulating any plan to bring other banking facilities under the Saansad Adarsh Gram Yojana, if so, the details thereof and if not, the reasons therefor?

ANSWER
The Minister of State in the Ministry of Finance

(a) to (c) In view of importance of providing banking services under the Saansad Adarsh Gram Yojana, Department of Financial Services, Ministry of Finance has advised the Public Sector Banks and Private Sector Banks vide communication dated 12.12.2014.

Banks have been advised to ensure banking services are provided in each Saansad Adarsh Gram. These services may be provided through a branch or, in case any selected village is not found to be a viable location for branch opening, through a fixed point online inter-operable Business Correspondent or Kiosk.

Banks have also been asked to closely monitor implementation of Pradhan Mantri Jan-Dhan Yojana (PMJDY) in Saansad Adarsh Gram and further to ensure allocation of targets to link branch of Saansad Adarsh Gram on various parameters, like every adult having a bank account, issuance of RuPay Card, saturation of Kisan Credit Card (KCC) in the village, encouraging Self Help Group (SHG) and Joint Liability Group (JLG) movement and Kisan Club and monitoring thereof.

Beneficiaries under Beti Bachao Beti Padhao Scheme

GOVERNMENT OF INDIA
MINISTRY OF WOMEN AND CHILD DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO: 3067
ANSWERED ON : 05.01.2018

Beneficiaries under Beti Bachao Beti Padhao Scheme

Partha Pratim Ray
Will the Minister of

WOMEN AND CHILD DEVELOPMENT be pleased to state:-

(a) the number of beneficiaries under the Beti Bachao Beti Padhao (BBBP) scheme since its inception, State/UT-wise;

(b) whether the Government has taken note that kanyashree scheme of West Bengal Government is recently awarded United Nations Public Services Award, if so, the difference between these two schemes; and

(c) whether the Government proposes to incorporate some changes in BBBP scheme in view of Kanyashree scheme and if so, the details thereof?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF WOMEN AND CHILD DEVELOPMENT
(DR. VIRENDRA KUMAR)

(a) to (c) Beti Bachao Beti Padhao Campaign (BBBP) launched by Hon”ble Prime Minister on 22nd January, 2015 addresses the declining Child Sex Ratio (CSR) and related issues of women empowerment and aims to change mindsets and creating value around girl child. It is a tri-ministerial effort of Ministries of Women and Child Development, Health & Family Welfare and Human Resource Development. BBBP scheme has no provision for individual beneficiary cash incentive/cash transfer component by Government of India and thus is not a DBT (Direct Benefit Transfer) scheme. Government of India is aware of State specific schemes such as Kanyashree scheme of West Bengal, Dulari Kanya Scheme- Arunachal Pradesh, Mukhya Mantri Kanya Suraksha Yojana – Bihar, Majhi Kanya Bhagyashree Scheme – Maharashra, Mukhyamantri Rajshri Yojana – Rajasthan etc. In these States schemes the emphasis is laid on transfer of incentives to individual beneficiary.

However, BBBP Scheme is for arresting and improving the decline in Child Sex Ratio (CSR) in the country through advocacy and multi sectoral interventions to create and enable an environment for education of girl child. BBBP, basically, aims to challenge the son centric ritual and tries to change the mind set of public who discriminates girls against boys. Thus the schemes are different from BBBP. Therefore, BBBP Scheme’s architecture, guidelines, process are different from Kanyashree Scheme. Incorporation of changes in BBBP Scheme vis-a-vis Kanyashree Scheme does not arise.