PRS Capsule - September 2022

• 15 Oct 2022

Key Highlights of PRS

• Governance:
  • Criminal Procedure (Identification) Rules, 2022
  • National Logistics Policy, 2022
  • Indian Telecommunication Bill, 2022
  • PM Schools for Rising India (PM SHRI) Scheme
  • Extension in PM Garib Kalyan Ann Yojana
• Economy:
  • PLI scheme on High Efficiency Solar PV Modules
  • National Electricity Plan on Generation
  • RBI’s Guidelines on Digital Lending
• Biodiversity & Environment:
  • Compliance Timelines for Emissions of Thermal Power Plants

Governance

Criminal Procedure (Identification) Rules, 2022

The Ministry of Home Affairs notified the Criminal Procedure (Identification) Rules, 2022 under the Criminal Procedure (Identification) Act, 2022.

• The Act allows police officers or prison officers to collect certain identifiable information (such as fingerprints, biological samples) from convicts or those who have been arrested for an offence.

What are the Rules?

• The Rules specify the manner of taking certain information, persons authorized to collect information, manner of collecting, storing, sharing such records, and the disposal of such records.
  • Taking Measurements:
    • Under the Act, all convicts, arrested persons, and persons detained under any preventive detention law may be required to give their measurements.
    • The Rules specify that for certain persons measurements will not be taken unless they have been charged or arrested in connection with any other offence.
      • These persons include those violating prohibitory orders which are issued under Sections 144 or 145 of the Code of Criminal Procedure, 1973 (CrPC), or arrested under preventive detention under Section 151 of CrPc.
  • Storage of Measurement Records:
    • The Rules specify that the National Crime Records Bureau (NCRB) will issue the Standard Operating Procedure (SOP) for taking measurements including:
      • Specifications and the format of the measurements to be taken,
      • Specifications of the devices to be used for taking these measurements, and
      • The method of handling and storing these measurements at the state level.
    • The SOPs may also provide:
      • The digital format to which each measurement should be converted before uploading onto the database, and
      • The encryption method to be followed.
  • Destruction of Records:
    • The Act provides that the records will be destroyed in case of persons who have not been previously convicted (of an offence with imprisonment), and are released without trial, discharged, or acquitted by the court, unless directed otherwise by the Magistrate or court.
    • The NCRB will destroy the records as prescribed.
      • The Rules provide that the SOP will provide the procedure for destruction and disposal of records.
      • The state or central government or Union Territory administration will appoint a Nodal Officer to whom requests for destruction of record of measurements will be made.
        • The Nodal Officer will recommend destruction of records to the NCRB after verifying that such records are not linked with any other criminal cases.

National Logistics Policy, 2022

The Department for Promotion of Industry and Internal Trade (DPIIT) notified the National Logistics Policy, 2022.

• It seeks to provide a framework for the development of the logistics ecosystem.
  • Logistics include the transportation and handling of goods, storage, value addition, and allied services.

What are the Key Features of the Policy?

• Targets:
  • Reduce Indian logistics costs to comparable global benchmarks by 2030,
  • Improve India’s ranking in the Logistics Performance Index (LPI) to be among the top 25 countries by 2030.
  • Create a data-driven decision support mechanism.
• Reduction in Logistics Cost:
  • Logistics costs are planned to be reduced by improving efficiency in transport, warehousing, inventory management and regulatory matters.
  • Improvement in transport is envisaged through:
    • Increment in efficiency through multimodal infrastructure.
    • Sectoral plans for efficient logistics.
  • The policy seeks to develop warehouses with optimal spatial planning and facilitate private investment.
  • Inventory management is sought to be improved through reliable supply chains by promoting digitalization.
• Monitoring and Coordination:
  • Empowered Group of Secretaries set up under the PM GatiShakti National Master Plan will monitor the implementation of the National Logistics Policy.
  • The Empowered Group will set up a Services Improvement Group for monitoring improvements in processes, regulation, and digitization in the logistics sector.

Indian Telecommunication Bill, 2022

The Department of Telecommunications (DoT) has released the Draft Indian Telecommunication Bill, 2022 for public feedback.

• It seeks to replace the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950.
  • These Acts regulate telecom services, possession of telecom equipment, and laying of telecom network.

What are the Key Features of the Bill?

• License for Telecom Network and Services:
  • The central government will have the exclusive privilege to establish, operate, and maintain telecom network and provide telecom services.
    • It may grant a license to other entities to carry out these activities.
  • The bill defines telecom services as services made available to users by telecommunication including fixed-line and mobile, internet, broadcasting, satellite communication, machine-to-machine communication, e-mail, and Over-The-Top (OTT) communication services (voice, video, or messaging services over the internet).
• Spectrum Assignment:
  • Spectrum may be assigned through auction, or administrative allocation in case of government functions or purposes concerning public interest or necessity. These include:
    • Spectrum for BSNL, MTNL, and Prasar Bharti,
    • Disaster management
    • Safety in transport systems
    • Weather forecasting
    • Space research
    • Community radio stations
• Public Safety and National Security:
  • The central government or state government may:
    • Take temporary possession of telecom services or network, or
    • Direct that certain messages and communication of persons be intercepted and shared with them, or their communication be suspended.
      • These will apply in case of public emergency or safety and should be necessary in the interest of national security, foreign relations, public order, or prevention of offences.
• Additional Features:
  • A framework for right of way for laying telecom infrastructure.
  • Regulation of restructuring, insolvency, and payment default in the telecom sector
  • A telecom development fund.

PM SHRI (PM Schools for Rising India) Schools

The Union Cabinet approved PM SHRI (PM Schools for Rising India) Schools, a centrally sponsored scheme.

What are the Key Features of the Scheme?

• Under the scheme, more than 14,500 schools managed by central, state, and local body governments will be selected and upgraded.
  • Schools would be required to apply through an online portal.
    • The portal will be opened four times a year, once every quarter, for the first two years of PM SHRI.
• PM SHRI schools will be provided with several facilities such as:
  • Linkage with sector skill councils and local industry.
  • Improved pedagogy with a focus on holistic learning.
  • School quality assessment framework to measure outcomes.
  • Infrastructural facilities such as solar panels, Light-Emitting Diode (LED) lights, and smart classrooms.
  • Annual school grants.
• The total cost of the scheme will be Rs 27,360 crore (including central share of Rs 18,128 crore) for the period 2022-23 to 2026-27.

Extension in PM Garib Kalyan Ann Yojana

The Union Cabinet approved the extension of the Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY) for a period of three months (October to December 2022).

• Under the scheme, every month 5 kilograms of food grains per person is provided free of cost to all beneficiaries covered under the National Food Security Act (NFSA), 2013.
• Till now, six phases of the scheme have been implemented involving a cost of about Rs 3.45 lakh crore.
  • The current phase i.e., PMGKAY VII is estimated to entail an additional expenditure of about Rs 44,762 crore.

What is PMGKAY?

• PMGKAY is a part of Pradhan Mantri Garib Kalyan Package (PMGKP) to help the poor fight the battle against Covid-19.
  • Its nodal Ministry is the Ministry of Finance.
• The scheme aimed at providing each person who is covered under the NFSA with an additional 5 kg grains (wheat or rice) for free, in addition to the 5 kg of subsidized food grain already provided through the Public Distribution System (PDS).
• It was initially announced for a three-month period (April, May and June 2020), covering 80 crore ration cardholders. However, it has been extended multiple times, since 2020.

Economy

PLI Scheme on High Efficiency Solar PV Modules

The Union Cabinet approved the implementation of the second tranche of the Production Linked Incentive (PLI) Scheme on the ‘National Programme on High-Efficiency Solar PV Modules’.

• The scheme seeks to achieve the target of generating 280-GigaWatt (GW) capacity from solar energy by 2030.

What are the Key features of the Scheme?

• Aim: It seeks to promote domestic manufacturing of highly-efficient solar photovoltaic (PV) modules (commonly known as solar panels).
• Implementation: Indian Renewable Energy Development Agency (IREDA) is the implementing agency of the scheme.
• Scheme Outlay: Under the scheme, PLI is provided to selected manufacturers for five years post commissioning of the plants.
  • The first tranche of the scheme, approved in April 2021 had an outlay of Rs 4,500 crore and the second tranche has an outlay of Rs 19,500 crore.
  • The PLI rate will have a tapering factor, i.e., it will be higher in the first year and lower towards the end of the fifth year. This will signal the manufacturing industry to be competitive after five years.
• Key Objectives:
  • Installing an estimated 65,000 megawatt (MW) per annum manufacturing capacity of fully and partially integrated solar PV modules.
  • Creating manufacturing capacity for components (excluding PV modules).
  • Boosting research and development initiatives to achieve high-efficiency solar PV modules.

National Electricity Plan on Generation

The Central Electricity Authority (CEA) released the draft National Electricity Plan for public feedback. CEA is required to formulate a national electricity plan once in five years under the Electricity Act, 2003.

• The draft Plan provides a review of the last five years (2017-22), capacity addition requirements for 2022-27, and projections for the period 2027-2032.
• The draft Plan projects total electricity generation of 2,674 billion units by 2031-32, most of which will come from thermal (51%) followed by renewables (44%).

What are the Key Features of the Plan?

• Current Installed Capacity:
  • As of March 2022, the current installed capacity of the country is about four lakh MegaWatt (MW).
  • Coal, renewable energy sources, and nuclear constitute 51%, 39%, and 2% of the installed capacity, respectively.
• Generation Capacity Addition (2017-2022):
  • The target capacity addition for 2017-2022 could not be achieved primarily due to the COVID-19 pandemic.
    • As per the National Electricity Plan, 2018, the target from conventional sources (coal, gas, nuclear) was about 50,000 MW. However, the capacity addition could only achieve about 30,000 MW, i.e., 60% of the set target
• Required Capacity Addition (2022-2027):
  • 2.3 lakh MW of additional capacity needs to be added during 2022-2027 to meet the peak demand and energy requirement for the year 2026-2027.
  • Solar as a source will be a major contributor followed by wind, coal, and hydro.
• Contribution of Renewable Energy Sources (2026-27, 2031-32):
  • According to the CEA policies such as the National Solar Mission, PM-KUSUM, and the declining cost of Renewable Energy (RE) technologies will help make RE the major source in the energy mix of the country.
  • The draft Plan projects that RE contribution will increase from 25% (2020-21) to 36% of the total energy of the country in 2026-27, and 45% by 2031-32.
• Need for Additional Coal-based Capacity (2031-32):
  • Besides the under-construction coal-based capacity of 25,000 MW for 2022-27, the country may need an additional coal-based capacity of up to 28,000 MW by the year 2031-32.

RBI’s Guidelines on Digital Lending

The Reserve Bank of India (RBI) released guidelines on digital lending.

• The guidelines will be applicable for digital loans extended by regulated entities including commercial banks, urban co-operative banks, states co-operative banks, and Non-Banking Financial Companies (NBFCs).

What are the Guidelines?

• Disclosure to Borrowers:
  • Regulated entities shall provide a key fact statement to borrowers before the loan contract is executed.
  • The statement should be in a standardised format for all digital lending products and shall include information on:
    • Annual Percentage Rate (Cost of Digital Loans for the Borrower)
    • Recovery Mechanism
    • Grievance Redressal Officer.
  • Any fees/charges not part of the statement cannot be charged by the regulated entities.
  • Digital lending applications should prominently display information such as product features, loan limits, and costs.
• Creditworthiness:
  • Regulated entities shall capture the economic profile of the borrowers before extending loans.
  • There shall be no automatic increases in the credit limit without the explicit consent of the borrower for every such increase.
• Data Protection:
  • Any data collected by regulated entities should be need-based, with the prior consent of the borrower, and should have an audit trail.
  • Digital lending applications should desist from accessing mobile phone data such as media, contact lists, and call logs.
  • Explicit consent of the borrower shall be taken before sharing personal information with third parties except in cases where it is done according to statutory or regulatory requirements.
• Grievance Redressal:
  • Regulated entities shall ensure that they have a nodal grievance redressal officer to deal with digital lending related complaints.
  • If a complaint lodged by a borrower is not resolved within 30 days, they can complain with the Reserve Bank-Integrated Ombudsman Scheme.

Biodiversity & Environment

Compliance Timelines for Emissions of Thermal Power Plants

The Ministry of Environment, Forest and Climate Change notified amendments to the Environment Protection Rules, 1989 specifying standards for emission of environmental pollutants.

• Previously, emission standards of thermal power plants were based on the generation capacity of the plant.

What are the Key Amendments?

• The amendments specify emission compliance timelines based on the geographical location of thermal power plants (Category-A, Category-B and Category-C plants).
  • Category-A plants are required to comply with Sulphur Dioxide (SO2) emissions by 2024.
  • Category-B plants are required to comply with SO₂ emissions by 2025.
  • Category-C plants are required to comply with SO₂ emissions by 2026.
• An environment compensation charge shall be levied on plants that continue non-compliant operations beyond the prescribed timeline.
• The amendments also provide exemptions to thermal power plants that are retiring, i.e., being decommissioned.
  • Category-A units that are retiring in 2022, and Category-B and -C units that are retiring in 2025 are exempt from non-SO2 emission standards.
• Similarly, all units that are retiring in 2027 are exempt from SO₂ emissions.

What are the Different Categories of Coal Plants?

• Category-A Plants:
  • The power plants within the radius of 10 km of the National Capital Region (NCR) or cities having million-plus population have to meet the December 2022 deadline.
    • As per the list prepared by the Central Pollution Control Board (CPCB), there are 79 such coal-based power plants.
• Category-B and –C Plants:
  • The power plants within the radius of 10 km of critically polluted areas or non-attainment cities  have to meet the December 2023 deadline. There are 68 Category-B plants.
  • The remaining plants comprising 75% of total fall under Category-C were expected to meet the December 2024 deadline. There are  449 Category-C plants.