kolkatapost: Fwd: Ns & Vs

Friday, April 2, 2010

Fwd: Ns & Vs

---------- Forwarded message ----------
From: Indicus <Analyticsindic@indicus.net>
Date: Thu, Apr 1, 2010 at 12:31 PM
Subject: Ns & Vs
To: palashbiswaskl@gmail.com

Volume 2, Issue 4, April 2010

EDUCATION

Three legislation to be proposed for higher education
The government proposes three legislations for improving higher education including allowing domestic and foreign players to set up educational institutes.

The clearing of the Foreign University Education Bill by the Cabinet has lead to both accolades as well as criticism for the incumbent HRD minister Kapil Sibal. As we have been writing in these columns, Higher Education in India requires concerted efforts by the government to take it out from its current state of mediocrity. So, If the hope is that foreign universities will come and resolve the quality problem of our higher education system, the answer is no.
The opening of the sector to FDI will not mean that the best universities form abroad will come and set up campuses here and bring in their research and pedagogy practices with them. It takes many decades to create such institutions, so at best the universities that will come to India will come with the narrow aim of getting a good return on their investments and hence in fields that have commercial viability. This in itself should not be scoffed at. Given the current demand for education in a variety of vocational and professional fields this gap may be filled in by these universities. So, these universities may at best serve some expansionary objectives. There is also a possibility that competition may force incumbent universities to perform. This however seems difficult as best national institutions are locked in an unequal combat. They have neither the autonomy to do what needs doing nor the resources to retain the best teachers. Until and unless the politician bureaucrat stranglehold on the Indian universities is lifted and the universities are given autonomy they will be run as government departments stifling innovation and discouraging entry of young talent.

REGULATION

Competition panel to drag CAT to apex court
The Competition Commission of India (CCI) plans to move the Supreme Court against the Competition Appellate Tribunal (CAT), alleging it has overstepped its brief.

In this particular case the Appellate Tribunal has tried to thwart the efforts of the CCI to investigate a Government procurement case. The Indian Railways have got into an exclusive supply arrangement with another Government corporation SAIL.
CCI had started investigation under the provisions of Section 3 of the Act that prohibits agreements that have or are likely to have an "appreciable adverse effect on competition" in a relevant market (product or geographic). The Cabinet Secretary of the GoI in a CCI conference recognized that Government procurement mechanisms cost the country a large chunk of its GDP and bringing transparency and competition in procurement is important. By restraining the CCI to carry out its duty the CAT has perhaps overstepped its mandate, and if the law allows for this then the law has to be changed as the CCI should be given a free reign to carry on its duties as mandated by the law.
The Government has to recognize the independence of an authority like the CCI if it hopes to transcend to a high growth economy as there is enough empirical evidence of causality between strong anti-trust bodies and growth.

NEWS WITH ANNOTATES

RS passes historic women's Bill amid high drama
In an unprecedented move in the recent history of the Parliament, marshalls were called in to forcibly oust seven MPs from the House to pass the bill.

A lot has been said and written about this, but do not be fooled, this Bill does not empower the "Aam Aurat". Will be too glad if it does not get passed in the Lok Sabha as do not want the "Babalog" (the sons, nephews, grandsons of politicians or their friends) to be given company by "Babylog" (the daughters, nieces, wives, girlfriends and mistresses of politicians) in the parliament. Unlike, the Panchayats which are executive bodies, this kind of quota to legislative bodies is simply not done!

Hasty government retreat on nuclear liability cap Bill
The government has introduced in the Lok Sabha what it considers another key legislation, to cap the financial liability of company operating a nuclear power unit.

The government has to speedily re-introduce the bill and get it passed if it hopes for any private participation in nuclear power. The absence of the Bill will gravely damage the Indian nuclear supplier industry. Certainly, some amendments to increase the liability of the firms are in order, the Bhopal Gas Tragedy has left us with some very cruel lessons.

SC bats for electricity regulator on margins
The Supreme Court has upheld the authority of the Central Electricity Regulatory Commission (CERC) to regulate margins on resale of electricity.

Cannot say much about the SC ruling in this matter, as it was predictable. In most cases the apex court has not stepped into the defined mandate of the sectoral regulators and overruled its' decisions. However, the sectoral regulator CERC in this case is resorting to very hasty regulations that are stifling the development of an electricity market.

Spectrum allocation hinges on defence vacating frequencies
Winning bidders at upcoming auctions for India's 3G mobile licences may not get spectrum allocations as scheduled because the defence services may not vacate the frequencies in time

The institutional inertia in this matter is amazing. Indian consumer is already faced losses due to a delay in the roll out of 3G services. Sri Lanka has already a year ago started these services. Moreover, this delay will be factored in the bids, which will cause a loss to the exchequer.

CERC imposes congestion charge of Rs 5.45 per unit
The Central Electricity Regulatory Commission (CERC) has imposed with immediate effect, a congestion charge of Rs 5.45 per unit for all regions.

Stiff penalties such as these may introduce Grid Discipline as well as encouraging capacity creation rather than resorting to Unscheduled Interchange for meeting huge shortages.

Edited by: Payal Malik
payal@indicus.net

MORE NEWS
Ministers' panel proposes limits for National Food Security Bill An empowered group of ministers (eGoM) has urged the government to delink the proposed National Food Security Act (NFSA) from nutritional security.	Stalement in RBI, competition panel talks over bank M&As The ministry of corporate affairs said it is not agreeable exempting the banking industry from the M&A norms that are expected to be put in place by CCI soon.
Government mulling autonomy for nuclear power regulator As it puts in place massive expansion plans in the nuclear power sector, government is mulling giving autonomy to the atomic energy regulator by amending the relevant laws.	Government calls for harsh steps to cut losses of oil firms Petroleum ministry has called for "harsh decisions" to cut losses of oil firms even as it hinted that cleaner Euro-IV fuel in 13 metro cities will cost more from 1 April.
Bill to strengthen petroleum Act introduced Petroleum & Natural Gas Ministry has introduced the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Amendment Bill, 2010, in the Lok Sabha.	Trai proposes cap on number of TV channels The Telecom Regulatory Authority of India has asked for views on capping the number of satellite channels in the country.
SC dismisses power trading cos' plea on trading margins A Constitution Bench of the Supreme Court dismissed appeals of power traders against the Central Electricity Regulatory Commission (CERC) on imposing trading margins.	Copyright content to pinch pockets of FM, TV channels Entertainment content (movie and music) will be 10-15 percent more expensive, following the proposals of the Finance Bill 2010.
Government allows private firms to issue infra bonds The government said that the private sector will be allowed to raise resources by issuing long-term infrastructure bonds carrying tax benefits.	Government for curbing private operators' monopoly at ports The Shipping Ministry will finalise a policy to prevent monopoly of private operators at major ports in next one month, Rajya Sabha was informed.
Government nod to set-up knowledge network at cost of Rs 5990 cr Government has approved a project to connect 1500 educational institutes across the country through high speed data communication network.	Viability gap funding to be extended to education, health The government will soon provide a framework for viability gap funding for creation of physical infrastructure in health and education space though public-private partnership (PPP).