India’s First International Multimodal Logistics Park at Jogighopa ,Assam

Union Minister of Ports, Shipping & Waterways and Ayush, Shri Sarbananda Sonowal visited the construction site of India’s first International Multi Modal Logistics park in Jogighopa, Assam to review the progress today. Shri Sonowal said the jetty at the park is likely to be completed within this year. Union Minister expressed satisfaction at the pace of work as the road and railway connectivity is also aimed at completion by end of this year.

Speaking on the occasion, the Shri Sonowal said, “For the swift development of the Northeast India, our dynamic Prime Minister Shri Narendra Modi ji has been taking many revolutionary steps to revitalise our economy. Prime Minister Modi ji’s vision of transformation via transportation has enabled the entire region of Northeast to revamp their transportation network. As the construction of this crucial Multi Modal Park goes on in a swift pace, it is likely to unlock huge potential for the region along with the neighbouring countries like Bhutan and Bangladesh. The PM Gati Shakti National Master Plan has been conceived to revive and rejuvenate the transportation to become an efficient & effective agent of change. In order to ensure trickle down of economic prosperity, the PM Gati Shakti NMP aims at strengthening the coastal regions of both sea and rivers. I call upon everyone to join this wonderful initiative and make it a grand success.”

The park is being developed under the ambitious Bharatmala Pariyojana of the Government . First such MMLP, it is being made by NHIDCL in Jogighopa of Assam. The park will be connected to road, rail, air and waterways. This is being developed in 317-acre land along the Brahmaputra.

The distance of 154 km between Jogighopa and Guwahati will be covered by making a 4-lane road on this stretch, a 3-km rail line will connect Jogighopa station to the MMLP, another 3-km rail link will connect it to the IWT, and the road to newly developed Rupsi airport will be upgraded to 4-lanes for easier connectivity.

The MMLP will have all the facilities like, warehouse, railway siding, cold storage, custom clearance house, yard facility, workshops, petrol pumps, truck parking, administrative building, boarding lodging, eating joints, water treatment plant, etc.

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Making India self-reliant in all areas

The Vice President, Shri M Venkaiah Naidu today called for making India fully self-reliant in all areas, including strategic domains.

Addressing scientists and staff of the Naval Physical and Oceanographic Laboratory at Kochi, the Vice President, stressed the need for increasing indigenous content in the defence sector and cutting down on imports.

“To achieve that, we need to not only give greater thrust to R & D activities, but also allow private collaboration, wherever it is possible and feasible, with stringent quality controls”, Shri Naidu observed.

On this occasion, the Vice President virtually laid the foundation stone of the “Towed Array Integration Facility”, essential for the development of towed array sonar systems, which is critical to underwater defence. The towed array sonar system is expected to enhance the Navy’s capabilities to detect quieter enemy submarines underwater.

Asserting that India is strongly marching ahead on its way to becoming a global superpower in the coming decades, he lauded the scientists In defence, space and other areas for doing excellent work in strengthening India’s security.

Referring to the fact that India is still one of the largest importers of defence equipment, the Vice President said, In this context, the contribution of a small lab like NPOL in empowering the nation in its defence needs is truly commendable.

Keeping in view the geo-political scenario in our neighbourhood, the Vice President said NPOL’s role towards national security is paramount as all warships or conventional submarines in the fleet of the Indian Navy are installed with NPOL-developed sonars. “Besides bringing in the socio-economic gains by stopping imports in this niche domain, NPOL has been able to master a very complex and critical technology that is giving a strategic edge to the Indian Navy in anti-submarine warfare capabilities”, he added.

Lauding the laboratory for establishing itself as a leading Research & Development centre in the area of underwater surveillance systems, he noted that it is currently working on ambitious mission mode projects and technology demonstration projects, besides undertaking a major Flagship Programme, the INTEGRATED MARITIME SURVEILLANCE (INMARS) Programme for Indian Navy’s future requirement for the next 15 years.

Appreciating NPOL for building strong network with industry and contributing towards improving financial performance of PSUs, the Vice President noted that

NPOL has also nurtured more than 100 local industries, including MSMEs and Start-ups, for developing niche technologies.

On the occasion, the Vice President also inaugurated Dr. APJ Abdul Kalam memorial and an installation on the occasion of Azadi ka Amrit Mahotsav near the laboratory. Describing the memorial as “truly befitting”, he said that it will inspire countless people from all walks of life every day.

Governor of Kerala, Shri Arif Mohhammed Khan, Minister for Industries, Government of Kerala, Shri P. Rajeev, Member of Parliament, Shri Hibi Eden, Director General (Naval Systems & Materials), Dr. Samir V Kamat, Director, Naval Physical and Oceanographic Laboratory, Shri S Vijayan Pillai, Chief Staff Officer (Training), Headquarters, Southern Naval Command, Rear Admiral T.V.N. Prasanna and others were present on the occasion.

Following is the full text of the speech:

“Namaskaram! Good afternoon to you all!

I am pleased to visit Naval Physical & Oceanographic Laboratory (NPOL), a premier R&D establishment of the Defence Research and Development Organization and interact with all of you today.

Formed in the Southern Naval Command in 1952, NPOL later became part of DRDO in 1958. It will be celebrating its 70th year of inception in 2022. It is a matter of pride for the nation that during these last seven decades, NPOL has established itself as a leading Research & Development centre in the area of underwater surveillance systems.

I am told that NPOL-developed Sonar systems, which are the most critical equipment in the Anti-Submarine Warfare, have been fitted in all leading platforms of Indian Navy including ships, submarines and helicopters. The country’s flagship technology achievement, the strategic submarine INS Arihant also carries NPOL-developed sonar system.

I understand that NPOL’s services to the nation started with design and development of Hull Mounted Sonar systems for the Indian Navy’s frontline Frigates and Destroyers. Today, NPOL has diversified the Research and Development area to Submarine Sonars, Airborne Sonars, Diver Detection Systems and Underwater Communication systems. I am happy to note that state of the art R & D facilities have been established and many new technologies in electronics and transducers have been developed.

With NPOL emerging as a leading and high performing R&D laboratory working in the area of underwater surveillance systems, Sonar systems developed by it are being used in Indian Navy’s frontline platforms for last few decades and many of them have entered into third and even fourth generation products.

Dear sisters and brothers,

As you all know, India is strongly marching ahead well on its way to becoming a global superpower in the coming decades. In defence, space and other areas, our scientists from DRDO, ISRO, BARC and other leading R & D organizations are doing excellent work in strengthening India’s security.

But it is also a fact that our country is still one of the largest importers of defence equipment. In this context, the contribution of a small lab like NPOL in empowering the nation in its defence needs is truly commendable. I understand that the scientists here are working very closely with the Indian Navy, frequently sailing with them in ships and submarines in order to gain a deeper insight into their requirements and offer customized solutions. This is advantageous in four ways 1) The complete know-how and know-why, especially in critical areas like oceanography and transducer materials, remains exclusively with us and no foreign player can enter into the market easily; 2) These systems can be upgraded periodically with improvements; 3) Our scientists can address the problems of users in a quick and efficient manner, making maintenance and life time support of these systems easier; and 4) Most importantly, through indigenization of these systems, there will be a savings to the exchequer ranging from 20% to 75%.

I am glad to note that NPOL has also built strong relationship and network with industry for carrying out its charter of duties. The lab has been synergistically working with PSUs like BEL, KELTRON & HMT and is a key provider of technologies, contributing to their improved financial performance during the recent years. I am told that NPOL has also nurtured more than 100 local industries, including MSMEs and Start-ups, for developing niche technologies for underwater surveillance systems.

Keeping in view the geo-political scenario in our neighbourhood, I believe NPOL’s role towards national security is paramount as all warships or conventional submarines in the fleet of the Indian Navy are installed with NPOL-developed sonars. Besides bringing in the socio-economic gains by stopping imports in this niche domain, NPOL has been able to master a very complex and critical technology that is giving a strategic edge to the Indian Navy in anti-submarine warfare capabilities.

I am informed that currently this laboratory is working on ambitious mission mode projects and technology demonstration projects, besides undertaking a major Flagship Programme, the INTEGRATED MARITIME SURVEILLANCE (INMARS) Programme for Indian Navy’s future requirement for the next 15 years.

NPOL is also expanding its work to play a crucial role in establishing Underwater Domain Awareness for the nation.

Dear sisters and brothers,

Our mantra should be atma-nirbhartha—to make India fully self-reliant in all areas, including strategic domains. For instance, we need to keep increasing our indigenous content in the defence sector and cut down on imports. To achieve that, we need to not only give greater thrust to R & D activities, but also allow private collaboration, wherever it is possible and feasible, with stringent quality controls.

On this occasion, let me inaugurate the 70th Anniversary celebrations of NPOL. I am sure that NPOL will keep its flag soaring higher and higher by developing several critical technologies and provide solutions to the Indian Navy in protecting our long coast line. Today, as part of the government’s AZADI KA AMRIT MAHOTSAV celebrations in connection with 75th year of Indian Independence, NPOL is commemorating a great visionary, Dr APJ Abdul Kalam, who rose from a humble background to become a great defence scientist and finally the president of the country. I feel honoured to dedicate Dr APJ ABDUL KALAM MEMORIAL to the nation. Dr Kalam’s memorial in front of this great laboratory is truly befitting and I am sure that it will inspire countless people from all walks of life every day.

Namaskar!

Jai Hind!”

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LGBT RIGHTS IN INDIA

(Photo: iPleaders Blog)

“Every cloud has a silver lining.” This proverb goes well with the historic judgement passed by the Supreme court on 6^th September 2018 in the favor of LGBT community rights. This has been much debated topic since a long time. Nothing could be more blessing than the enactment of Article 377 for the relief of LGBT community. The hearing of the petitions began with a bench consisting of Chief justice Dipak Misra and justices DY Chandrachud, AM Khanwilkar, Indu Malhotra, and Rohinton Fali Nariman. It was truly a landmark decision which struck down a 19^th century law criminalizing homosexuality in India.

What role does the Indian Constitution play towards the emancipation of the society’s most marginalized and excluded? What vision does the Constitution espouse with respect to basic fundamental rights and freedoms? And what conception of inclusion and pluralism does the Constitution pursue in a society that remains deeply divided and disjointed? All these searching questions came to form a distinct part of the decision of the Indian Supreme Court (Court) when it was called upon to rule on the constitutional validly of Section 377 of the Indian Penal Code, 1860. It was not the first time however, that the Court was examining Section 377 on the touchstone of the Constitution, as the case previously travelled through several levels of judicial adjudication involving different jurisdictional procedures.

Embodying the ethos of Victorian morality, Section 377, a colonial-era law, criminalized ‘…carnal intercourse against the order of nature with any man, woman or animal…’. Anything that was not penal-vaginal sexual encounter was ‘against the order of nature’ and as a consequence ‘unnatural’. Through this provision, homosexual acts even between consenting adults was considered and proscribed as a criminal offense punishable with imprisonment. Thus, a significant section of the population comprising the LGBT+ community remained perpetually ostracized by the Indian society, persecuted by State authorities and marginalized in the discourse of constitutional rights. Therefore, when the Court decided in Navtej Johar v Union of India that Section 377 in so far as it criminalizes same sex acts between consenting adults, violates the constitutional mandate enshrined under the Fundamental Rights chapter, especially, Art. 21 (life and personal liberty), Art. 14 (equality and equal protection of laws), Art. 15 (non-discrimination) and Art. 19 (Freedom of expression), truly, it was a historic undoing of injustice towards the LGBT+ people. In other words, as a result of this decision, LGBT+ people who were historically and by default considered ‘criminals’ under the law, came a bit closer to acquiring an ‘equal moral membership’ of the society and the State. It was a tough as well as a long road but at the end everything seemed to be mightier.

Let us look back into the history of India from where the seeds of this discrimination were actually sown. India has a long tradition of tolerance for all kinds of beliefs, faiths, philosophies, and ways of living. This takes us back to the 1800s. Lord Macauley first created this law in 1860 when he was the President of the Indian Law Commission. The reason for this law was because the British WANTED TO “impose Victorian values” on the colony of India. Not only were such values trying to be inflicted on the Indian society but also the Constitution of India wanted to “…narrow constructions of patriarchal gender relations and heteronormativity” (Ramasubhan 91).

What’s important and a reflection of the movement itself is that the support has come not just from the queer people, but across a range of actors, movements and institutions. Progressive groups, state bodies like the National Human Rights Commission, teacher’s associations, professional associations including the medical and mental health establishments, women’s groups, student groups, trade unionists and private companies came out publicly against the judgement. Thousands across the country stood together, repeating the chant that brought together our resistance: ‘No Going Back’.

In declaring Section 377 to be unconstitutional, however, the Court was deeply reflective about the fact that for Constitutional rights to acquire a meaningful purpose for the marginalized communities, disciplining State action alone will not be sufficient. In this regard, the Court did not mince words when it stated that it is both, criminality of the law and the ‘silence and stigmatization’ of the society towards the LGBT+ community that orchestrates the marginalization and the exclusion of the former. Implicit in that claim was the understanding that inequality, hierarchy and prejudice transpires as much from State action as it does from societal sanctions, community conventions and private relationships. In the context of such social realities, what is the stated role of the Constitution and the laws? Is the mandate of the Constitution simply confined towards ordering the relationship between the State and the individual (vertical) or does the Constitution have an equal role to play in shaping normative values among individuals within the society?

The Court unequivocally embraced the latter narrative and found that the Indian Constitution envisions an expansive role for both the State and the individual to actively promote social change within the contours of the Constitution. It seeks transformative change ‘in the order of relations not just between the State and the individual, but also between individuals’. The transformative potential in Indian Constitution is a conscious ‘attempt to reverse the socializing of prejudice, discrimination, and power hegemony in a disjointed society’. Therefore, the Constitution, the Court surmises, obliges not only the State not to violate fundamental rights, but also individuals to ‘act in a manner that advances and promotes the Constitutional order of values’.

“Sexual orientation” is an essential attribute of privacy. Discrimination against an individual on the basis of sexual orientation is deeply offensive to the dignity and self-worth of the individual. This judgement can be considered as a revolutionary one in a society like India. But every judgement has two parts, one is written and other is its execution. The written part is progressive and reformist and its execution includes sensitizing the society and institutions in accepting what is written in this judgement. That may take time. Till then I would like to put forth some suggestions. The first step is sex education in schools and at homes. The second step is that the law enforcement agencies such as the police needs to be more sensitized towards the LGBT people. Similarly, our media and film fraternity can play a very important role in imparting knowledge and disseminating true information about LGBT people.

To conclude, we all are equal. Nobody should be discriminated on whatsoever ground. In the last few years LGBT are gaining acceptance in many parts of India. Many Bollywood films have dealt with homosexuality. They have also fair well at the box office. There’s a transformative constitutionalism which is happening and the real import of transformative constitutionalism lies in positive measures that the State ought to take in bringing the Constitution closer to the most deprived. Indian society needs to shrug off its old thinking and come out of the widely prevailing homophobia.

Role of IBC in the credit sector

(Photo: SignalX)
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well – regulated. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well. The Indian economy is a mixed economy. It is known to be the world’s sixth largest in terms of nominal GDP. The legal environment plays a vital role in the economic development of a country.

After GST, IBC is the second most crucial reform in the legal setting of India. It was implemented through an act of Parliament. The law was necessitated due to huge pile up of non-performing loans of banks and delay in debt resolution. Insolvency resolution in India took 4.3 years on an average against other countries such as U.K (1 year) and U.S.A (1.5 years), which is sought to be reduced besides facilitating the resolution of big-ticket loan accounts. Two years on the IBC has succeeded in a large measure in preventing corporates from defaulting on their loans. The IBC process has changed the debtor-creditor relationship. A number of major cases have been resolved in two years, while some others are in advanced stages of resolution.

With a strict 180+90 days ‘resolve-or-liquidate’ diktat, the Code has received commendation, not only from the Indian Industry, but from the global fraternity, including The World Bank and IMF, and has materially contributed to India’s 30 place jump in 2018’s Ease of Doing Business ranking. IBC truly enforces the concept of ‘creditor in control’ instead of ‘debtor in possession’, and maximize value recovery potential corporate debtors. “Capitalism without Bankruptcy is like Catholicism without Hell,” said Frank Borman, renowned astronaut and erstwhile chairman of a failed US airline. As such, the institutions established by the state should promote freedom to start a business (entry), to run the business (level playing field) and to exit/discontinue the business. The reforms of the 1990s focused on freedom of entry (dismantling the license-quota raj) and then, from the beginning of this century, the focus shifted to freedom of continuing business. The third leg, which is freedom to exit, has now been provided in the shape of the IBC, to provide a mechanism to stressed businesses to resolve insolvency in an orderly manner.

The IBC seeks to consolidate scattered and unstructured jurisprudence on insolvency prevalent in various Acts, like the Presidency Towns Insolvency Act, 1909, Sick Industrial Companies Act, 1985, Limited Liability Partnership Act, 2008, Companies Act, 2013, etc. On the positive side, we have witnessed that debtors were reconciling with the ‘creditor in control’ scenario, with the committee of creditors (CoC) becoming all- powerful in the resolution process.

It was the first time that the government and Reserve Bank of India were on the same page for effective resolution of the problem of bad debt and improving overall financial discipline in the way business is conducted in India. As Nelson Mandela said, “I never lose; I either win or I learn.” The jury is still out on the IBC even though the World Bank has acknowledged the efforts.

WHAT IS INSOLVENCY AND BANKRUPTCY CODE, 2016?

“In One line we can say that in case of a default by the equity owners to meet their debt obligations, control is transferred to the creditors and equity owners take a back seat.”

The insolvency and Bankruptcy code, 2016 (IBC) is the bankruptcy law in India and whose aim is to consolidate the existing framework by creating a single law for insolvency and bankruptcy and amend the laws relating to the entities in India with the time being enforce. The consolidation of laws in India is not a new concept like GST was framed by consolidating 17 laws into one. This code was introduced in Lok Sabha in December 2015. It was passes by Lok Sabha on 5 May 2016.

The purpose of this act can be divided into the following two goals:

1. Making sure that the insolvency proceedings can be completed within a minimum amount of time.

2. Making sure that the financial risks to the foreign investors is decreased.
Its primary goal was to consolidate insolvency resolution process for LLPs. Companies, individuals and partnerships.
That being said, the purposes of these codes, being a part of The Companies (Amendment) Act 2017, are the following:

1. Establishing and amending the laws associated with reorganizing and resolving the insolvency of entities like partnership firms, individuals and corporate persons.

2. Providing resolution in a time bound manner.

3. Promoting entrepreneurship in India.

4. Maximizing the availability of credit in the Indian market.

5. Establishing Insolvency and Bankruptcy Board in India.

The four pillars of supporting institutional infrastructure, to make the Insolvency and Bankruptcy Process work efficiently are:

The regulator – The Insolvency and Bankruptcy Board of India (IBBI)
Adjudicating Authority (AA):

National Company Law Tribunal (NCLT) – For Corporate, i.e., Companies and Limited Liability Partnerships
National Company Law Appellate Tribunal (NCLAT) will act as Appellate Authority.
Debt Recovery Tribunal (DRT) – For Individuals and Unlimited Partnership Firms

A private industry of Insolvency Professionals (IPs) with oversight by private Insolvency Professional Agencies (IPAs)
A private industry of Information Utilities (Ius)

THE ROUTE TO THE IBC

The main objective of the act is to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.

IBC provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must make decisions to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must make decisions to resolve insolvency. Under IBC, debtor and creditor both can start ‘recovery’proceedings against each other.

It is a comprehensive Code enacted as the Preamble states, to

“consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto”.

The Preamble clearly states that the legislative intent to incorporate this code is

Firstly, to remove the ambiguity that had been prevailing in the previous legislations;

Secondly, to prevent unnecessary delays and to ensure fast dismissal of matters, i.e., within 180 days;

Thirdly, to prevent loss to corporate creditors due to depreciation of assets of the insolvent company;

Fourthly, to establish a balance among the interests of the various stakeholders, and

Lastly, to create a common forum to deal with such matters.

IMPACT OF IBC

The Covid-19 pandemic has been driving corporate failures around the world, including in India. The global financial news reveals an increase in bankruptcies due to the Covid-19 induced global lockdowns. While the bankruptcies are unfortunate, a recognition of the bankruptcies facing companies in the face of the collapse and an efficient resolution of such bankruptcies (which will allow both the companies and creditors involved to move along) is vital to rejuvenating the economy.

In the light of the Covid-19 pandemic and business failures globally, it is important that financially distressed companies can still access the credit market thanks to a strong bankruptcy system and survive under stressed scenarios. Using a panel of 33,845 non-financial firms for the period of 2008-19 and by exploiting a difference-in-differences analysis, a study has been undertaken revealing the impact of the IBC policy on the availability of long- and short-term financing for, and the cost of, credit of distressed firms as compared to their non-distressed counterparts. As in most emerging markets, India’s debt market is dominated by state-owned banks and the domestic credit to private sector by banks (percentage of GDP) is 50 per cent in 2019 compared to a world average of 90.5 per cent (Source: World Development Indicators). Recent statistics from World Bank’s Doing Business Data show the creditor rights index in India improving from 6 in 2014 to 9 in 2019 compared to the world average of 5.67 in 2019.

Bose et al. (2021) study shows that after the introduction of the IBC reform, the access to long-term debt increased by 6.3 per cent, short-term debt increased by 1.4 per cent, while the cost of borrowing declined for distressed firms. This is the first study that provides evidence on the impact of the IBC policy on the “credit channels” of distressed firms. The enactment of the code has helped to enforce discipline in the country’s credit culture. IBC has created a credit culture that discourages defaults. There has been a change in the business culture as well: there is now an understanding that when things go wrong, companies will not get an automatic rescue package from the taxpayer funds. The objective of IBC was to create conditions so that credit could be generated from the domestic market and investments drawn from the international market. In order to achieve those objectives, it was necessary to create a culture of deterrence against default. The practice of dragging lenders to court to delay the repayments of outstanding loans is slowly coming to an end. India’s Insolvency and Bankruptcy Code is ensuring that lenders get repaid on time and this is making India a more attractive investment destination.

IBC has played a great role in macroeconomic objectives providing India a strong stand in the global platform. After the enactment of the code, the FDI has substantially increased. In 2012-13, the FDI of India was 34298 US$ Million and just after enactment of the code it rose to 61463 US$ Million in 2017-18 which is growing by approximately 80%. There has been an increase in Mergers and Acquisitions activity in the country. It also led to the establishment of Information Utilities (IUs) which further accelerated the development of the credit market of India.

In previous, no law prevented the operational creditors but under the code, there is a provision that the operational creditors (domestic as well as international) have right to file suit against the default. Thus, the code provides right to the foreign creditors which will enhance the economic transactions of India and others.

MEASURES TAKEN DUE TO COVID

The global COVID-19 pandemic and its consequential lockdown are having an economic ripple effect on the business of Indian citizens. To mitigate its impact, in the last tranche of economic reforms, the Central Government made numerous changes upon the Insolvency and Bankruptcy Code, 2016 (“IBC”), and its adjudicatory processes, which will have wide-ranging ramifications. In exercise of its powers under Section 4 of the IBC, the Central Government has raised the threshold for invoking insolvency to Rs 1 crore from the existing Rs 1 lakh. This provision will relegate MSMEs to civil remedies for debt recovery and may have an effect of excluding it under the IBC. At this cost, the amendment may have successfully addressed the issue of frivolous recovery claims initiated under the grab of insolvency processes due to the seemingly low original threshold of rupees one lakh.

The government has come up with IBC 2020 to streamline the CIRP, protect last-mile funding, and boost investment in financially distressed sectors. The changes put a threshold condition for initiating CIRP by the financial creditors, who are allottees under a real estate project. It also imports safeguards for successful bidders, the corporate debtors, and its assets from the offenses of the former promoters or management.

India took decades to implement such an effective insolvency regime and improve its global ranking of doing business. It promotes entrepreneurship and tries to balance the interest of the various stakeholders.

CONCLUSION

Resolving insolvency in a strict time bound manner is an important challenge for any country to maintain a healthy and robust economic system. This study has made an attempt to understand and analyze the impact of the IBC on the credit sector of the economy. The study emphasizes the fact that IBC is a big step in the direction of resolving the issues of Non-Performing Assets and hence will act to the rescue of banks which have been facing a lot of difficulties due to corporate defaults. The number of companies that have benefitted from this law is large, there has been improvement in the speed as well as the success rate of the resolution process.

There is still a long way to go ahead and as the saying goes,

“We have to acknowledge the progress we made, but understand that we still have a long way to go. That things are better, but still not good enough.”

Legal and policy challenges in space technology

(Photo: Outlook India)

“History is agreed upon as an uninterrupted process in time and space.”

India before independence was very different from the India that we see today. Of course, it is common knowledge that pre 1947 India consisted of modern day, Pakistan and Bangladesh. The after-independence chase of India faced major developments and changes that we can see today. India has an impressive array of achievements in the development of space transport as well as aviation industry for various applications. From a humble beginning with a small RH 75 rocket in the sixties to the successful launch of PSLV-D2 with 804 kg IRS-P2 in October, 1994, the Indian space programme has made remarkable progress through a well-integrated, self-reliant programme. On the other hand, the civil aviation industry of India has emerged as one of the fastest growing industries in the country during the last three years. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.

Every country’s success depends upon its government. The way it handles the whole economy largely affect its economic environment. In such a globalized environment, the governmental policies act as the key factor in determining its real success, be it in field of aviation, space technology or any other. The government however has reviewed its aviation policies from time to time and tried to make it friendlier however it lagged in certain jurisprudence. In the recent past, the outlook of the government of India has undergone substantial change. It has tried to adopt emerging trends and include different terminologies, ownership of private companies, more new projects, financing, hassle free management and its operations. The government has increased its investment in this sector. Moreover, it has tried to devise the privatization method to solve many problems attached to this sector. Privatization is needed for solving the problem of “distressed state syndrome”. The complete or partial privatization will give positive impact on efficiency, productivity and profitability. Trends of privatization is rising all around the world and it is important to analyze all consequences and specific results, which will be helpful to understand better difficulties and structural changes.

During the COVID time, there was a dramatic drop in demand for passenger air transport. This threatened the viability of many firms, putting many jobs at stake. While the aviation industry has often been a target of government policies, the COVID-19 crisis has precipitated a new suite of loans, loan guarantees, wage subsidies and equity injections, raising concerns about efficient use of public resources. The COVID-19 crisis has hit hard to the economy.

Although the aviation and space sector contribute a lot to the economy, however every coin has two sides. The other side of the story is that we have grown, but grown at the cost of our mother nature. The question that we need to dwell into is: “Do we belong to this earth or does this earth belong to us”. Commercial aviation is experiencing dramatic growth in various regions throughout the world but at the cost of what. It is leading to the pollution of the environment. Over the past 50 years global demand for air travel has risen by 9 per cent per annum. The environmental impact it has caused is very degrading. This has become a cause of concern.

INVESTMENT

According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India’s air transport sector (including air freight) reached US$ 2.79 billion between April 2000 and June 2020. The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49% would require government approval.

India’s aviation industry is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026.

Key investments and developments in India’s aviation industry includes:

In October 2020, Zurich Airport International signed the concession agreement for the development of Jewar Airport on the outskirts of Delhi. The agreement has granted Zurich Airport International the license to design, build and operate Noida International Airport (NIAL) for the next 40 years.

In October 2020, the Airports Authority of India (AAI) announced plan to upgrade runways at seven airports across the country by March 2022.

In January 2020, IndiGo became first Indian carrier to have an aircraft fleet size of 250 planes and became the first airline to operate 1,500 flights per day.

In December 2019, AAI announced its plans to set up India’s first three water aerodromes in Andaman & Nicobar.

As of December 2019, France-based Safran Group planned an investment of US$ 150 million in a new aircraft engine maintenance, repair and overhaul (MRO) unit in India to cater to its airline customers.

AAI plans to invest Rs. 25,000crore (US$ 3.58 billion) in next the five years to augment facilities and infrastructure at air transport.

THE NEED FOR SPACE LEGISLATION

What we can sketch out is that there’s a greater need for space legislation. With no legal obligation, the dream of ‘DIGITAL INDIA’ can’t be achieved. A robust legal regime would instill investor confidence, attract FDI and new technologies, reduce administrative and regulatory uncertainties, provide clarity on stamp duty, registration requirements, insurance, transfer of property, contractual obligation, space debris liability and intellectual property rights concerning space-related issues, and flourish space entrepreneurship by providing a level playing field to the private entities.

The policymakers need to resolve the following issues in virtue of requisite space legislation:

· Single Independent Regulator – In contradiction to the present multiple ministries, agencies and departments, namely, the Ministry of Home Affairs, the Department of Space, the satellite divisions of Department of Telecom, the Department of Telecommunications, the Telecom Engineering Centre, the Network Operation and Control Centre, the Ministry of Defense, and the Ministry of Defense, a single independent regulator is required to perform regulatory processes including the issuance of a place in orbit to launch a satellite and/or rocket, mandatory licenses to launch it, spectrum to communicate with it, and clearance for the technology and/or space equipment to be used.

· Space debris – Space debris or space junk encompasses both man-made and natural (meteoroid) particles that enhance the probability of disastrous collision that may cause damage to space vehicles. Although there is no specific international treaty or convention dealing with the imposition of liability, some long-standing guidelines were issued by NASA, on ‘how to deal with space debris’ which were later adopted by the UN General Assembly and COPUOS. However, well-defined provisions on liability of the launching state need to be formulated to reduce the persisting or potential conflicts among countries.

· Security measures – With the rising threats to national peace and security by potential space and cyber warfare possibilities, countries need to invest adequately in adopting cyber and military security measures. Rules and regulations on lines with the Data protection laws need to be formulated to ensure that adequate cyber security measures are in place.

· Granting of license – The process for granting a license is yet to be developed, but section 5 of the Bill envisages that there will be eligibility criteria, and a fee to pay, without giving any detail or indication as to what those criteria or fees might be. In particular, it sets out the obligation to provide a financial guarantee or insurance, which essentially addresses the broader liability question and the principles of liability that flow under the international space regime.

· Intellectual property rights- Section 25 of the Bill states, “Any invention, or other form of intellectual property rights, developed, generated or created during the course of any space activity shall be protected by any law for the time being in force, with the primary objective of safe guarding national security.“ such a provision might deter the potential participation of the private sector in the Indian space industry and thus needs to be looked into by the policymakers to enable innovation in the space industry.

CONCLUSION

“Without your involvement you can’t succeed. With your involvement you can’t fail.”

Well said by APJ Abdul Kalam.India’s aviation and space transport are largely untapped with huge growth opportunities. It’s the need of the hour to grab these opportunities and the government should deeply involve in this process by making key changes in its policy and legal framework. A single policy should be adopted. In aviation industry, a lot of digital transformation is required. A big vision and strategy are needed to get through stormy waters. Cost pressure should be taken into account. New technology should be adopted. With the increase in competition and entry of private players, only the companies who do best will be able to survive. On the other hand, in space industry, policy changes are needed to make the space sector more accessible to private players. There’s a need of single space legislation. Changes are needed in New Space India Limited (NSIL). Last year, the finance minister announced the opening up of the ISRO’s facilities to the country’s private sector as part of its COVID-19 special economic stimulus. This was an early but a commendable step. Many a thing have changed since COVID.

As it is said, “Every cloud has a silver lining.” We should also hope for the best. It is at these times when the government was able to realize its incapability and failure and hopefully it has started considering legal and policy aspect that needs deeper consideration

Benefits of Investing in Mutual Funds in India

(Photo: Bank Bazar)

Investment in any form is considered to be the best way of achieving additional income. It’s like waiting for an extra reward. One such word with which we all are familiar is “equity mutual funds”.There’s a large structural growth in equity mutual funds for Indian industries. The Indian Mutual Fund AUM/GDP ratio currently stands at 12% vis-à-vis the global average of 60%.

India has seen a significant growth rate in equity mutual funds investment. Indian investors are usually keen on investing in equity mutual funds because of the risk management. Investing in mutual funds has many advantages. Let’s discuss them briefly.

Return: Mutual funds involves higher risk but generally the return that it gives is greater than in any other investment plan.
Ø Professional Management: Even a person who does not have professional knowledge can invest. They are assured by the experts. The experts manage and operate mutual funds. They allocate it in different securities thereby assuring them profit.
Ø Flexibility in Investment amount: There’s no fixed amount to be invested. You can invest even with a minimal amount of Rs 100. This is the most important benefit which the investors get in equity mutual funds.
Ø Liquidity: This is also another benefit of investing in mutual funds. It’s not like fixed deposit where you are unable to withdraw amount at any point. You can redeem it at any point. Mutual funds have flexible withdrawal.
Ø Safety & Transparency: All the equity mutual funds have now become safe and transparent after the introduction of SEBI guidelines. They’ve a color coding through which the investors can assess the risk level.
Ø Diversification: Diversification is another factor which reduces the risk involved in building a portfolio. Mutual Funds consist of many securities, so investor’s interests are safeguarded if there is a downfall in other securities purchased.
Ø Accessibility: Mutual Funds are easily accessible. By accessibility, it means that you can buy mutual funds from anywhere in the world. You don’t require a Demat account for it. Mutual funds are very easy to buy.
Ø Lower cost: In Mutual Fund, funds are collected from many investors, and then the same is used to purchase securities. These funds are however invested in assets which therefore helps one save on transaction and lower its cost. Investors get the savings as lower costs of investing in Mutual Funds.

Mutual Fund is a strong financial tool which has helped in increasing the growth of Indian economy. Mutual Fund have provided financial stability to the Indian economy. The Indian capital market has been increasing significantly during last few years. With the Industrial revolution and reforms of financial sector, the economy has been opened up and many developments have been taking place in the Indian money market and capital market. In order to help the small investors, mutual fund industry has come to occupy an important place in the Indian market.

Although there are many benefits of investing in mutual funds in India, but we must remember that every good thing comes with some flaws. The market condition is very dynamic. Not anyone can invest in mutual funds. One needs to have a proper knowledge to do that. However, one thing which is certain is that there’s no harm in it. India still has many steps to climb.

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