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oc DecoDing the the migrant the poSt-locKDoWn economic StimuluS BlinD Spot ruleS oF engagement www.indiatoday.in may 25, 2020 `60 registered no. dl(nd)-11/6068/2018-20; U(c)-88/2018-20; FAridABAd/05/2020-22 licensed to post withoUt prepAyment rni no. 28587/75 MoDI’S NEW SWADESHI DEAL Will the Centre’s ` 20 lakh Crore finanCial stimulus and vision of self-relianCe revive india’s Covid-striCken eConomy?
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FROM THE EDITOR-IN-CHIEF A fter 48 days of lockdown, Prime Minister Narendra payroll protection programmes like in the US, UK and Germany. Modi announced a much-awaited stimulus package This is commensurate with the prime minister’s philosophy of on May 12. As part of it, he offered an economic stimu- giving no handouts to business. One hopes these loans will help lus of Rs 20 lakh crore ($266 billion), or 10 per cent businesses revive themselves, but many who will be unwilling to of India’s GDP, among the highest in the world. It is in keeping increase their liabilities, or cannot avail of a loan, will go bank- with the revival packages announced by major economies—the rupt, resulting in a loss of jobs, income and, eventually, demand. $2.2 trillion dollar lifeline by the US, which is 13 per cent of its If demand does not pick up, it will mean mass bankruptcies, economy, or Japan’s $1 trillion, which is 21 per cent of its econ- which is a distinct possibility. To get a loan, of course, would omy. However, India’s package included the Rs 1.7 lakh crore entail navigating the petrified bureaucratic banking system. stimulus announced by finance minister Nirmala Sitharaman Banking is all about risk and our banks at the decision-making on March 26 and the Rs 7.9 lakh crore stimuli administered by level have become risk-averse for fear of subsequent prosecution. the RBI between February and April. The agriculture reform of allowing farmers to sell goods freely is Prime Minister Modi laid out his vision for an ‘Atmanirbhar most welcome as is the commitment to develop rural infrastruc- Bharat’ or Self Reliant India. It rests on five pillars—bringing ture and expand MNREGA. a quantum, not incremental, jump in the economy, creating a T modern infrastructure, setting up a technology-based system of he sight of millions of migrants spilling out of Indian cities governance, leveraging our young demographic and harnessing and walking thousands of kilometres to their homes in Ut- India’s huge domestic demand. The prime minister is masterful tar Pradesh, Bihar and Madhya Pradesh with their meagre in projecting a vision for many of his schemes, but their execu- possessions on their backs and braving heat, hunger, exhaustion tion has been a mixed bag. Schemes such as the Swachh Bharat and even death will haunt us for years to come. For them, the gov- Abhiyan, which greatly reduced open defecation, opening of bank ernment has given free food for only two months and the promise accounts for the unbanked, distribution of a portable ration card. It has been a colossal of gas cylinders, direct benefit transfer failure of this government to have not antici- for farmers and affordable housing have pated the consequences of the lockdown for the been reasonably successful while others migrant poor in cities who can’t even practise such as Make in India, Start-up India, social distancing in their cramped dwellings. banking reform, getting government Their misery was further compounded by the out of business have been non-starters. vacillating policies on allowing them to return The question that now arises is how the to their original homes. new vision of Self-Reliant India will be Our cover story, ‘Modi’s New Swadeshi translated into action. Does it imply a Deal’, evaluates the impact of this stimulus return to the Nehruvian idea of import package on the economy and examines its substitution? Prime Minister Modi in his implications both in the long term and the stimulus speech also asked Indians to be short term. vocal about local, urging them not only The prime minister faces the daunting to buy local products but also to promote task of reviving an economy paralysed by them. Does this presage higher trade bar- COVID-19. The Indian economy, besides its riers to protect inefficient Indian industry enormous size, is highly complex, as it operates and the end of the various FTAs we have at many levels. Its ways of working straddle signed? How do we become competitive in many centuries, from the most primitive to the our tradeable goods? What is our growth super-modern. Managing it from a centralised strategy now that the export-driven growth as practised earlier bureaucracy, that too a slothful, leaky one, will never get us the by South Asian countries and later by China is passe? Do we seri- desired result. The government has to trust the invisible hand of ously believe we can be part of the global supply chain when the the market to decide who produces what, where to sell it and who world is turning inwards and we still rank 63rd in the ease of do- buys it. This is the time when the government should reduce bur- ing business in the world? Such attempts have failed in the past, eaucratic controls on the economy and concentrate on building as we saw with SEZs. I believe the government should encourage world-class infrastructure, including human development, as FDI for catering to our domestic consumption; exports, if they the prime minister has promised. He can make the government happen, will mean a bonus. This way, we could have access to more efficient by reducing the number of ministries and keeping the latest technologies and the best practices in the world. These them focused on what governments do best. In India, everyone are some of the things the prime minister will have to address is an entrepreneur, even the corrupt among the bureaucrats as he walks his talk if India is to be pulled out of one of the worst and government officials. The prime minister has to boost the financial crises it has faced. entrepreneurial spirit of India to help it escape the current mess Meanwhile, finance minister Nirmala Sitharaman has, after and reduce the power of those who shouldn’t be in business. This the prime minister’s vision, rolled out a series of measures for is the quantum change I am looking for. MSMEs, which form 29 per cent of our GDP and 48 per cent of our non-agriculture workforce. She has basically provided them liquidity in the form of easy-to-get loans without collateral, subordinate loans and equity investments. MSMEs number 63.3 million, but this will really benefit only 4.5 million. There are no (Aroon Purie) Illustration by NILANJAN DAS M AY 2 5, 2 02 0 INDIA TODAY 3
INSIDE UPFRONT LEISURE THE FUTURE OF Q&A WITH LABOUR LAWS PG 5 MUZAFFAR ALI PG 66 www.indiatoday.in CHAIRMAN AND EDITOR-IN-CHIEF: Aroon Purie VICE CHAIRPERSON: Kalli Purie GROUP EDITORIAL DIRECTOR: Raj Chengappa GROUP CREATIVE EDITOR: Nilanjan Das; GROUP PHOTO EDITOR: Bandeep Singh MANAGING EDITORS: Kai Jabir Friese, Rajesh Jha CONSULTING EDITOR: Ajit Kumar Jha (Research) EXECUTIVE EDITORS: S. Sahaya Ranjit, Sandeep Unnithan Mumbai: M.G. Arun SENIOR DEPUTY EDITORS: Uday Mahurkar, Manisha Saroop Hyderabad: Amarnath K. Menon DEPUTY EDITOR: Shweta Punj SENIOR EDITORS: Kaushik Deka, Sasi Nair, Anilesh Mahajan Mumbai: Suhani Singh; Jaipur: Rohit Parihar 16 SENIOR ASSOCIATE EDITORS: Ashish Mukherjee Mumbai: Kiran Dinkar Tare; patna: Amitabh Srivastava ASSOCIATE EDITORS: Shougat Dasgupta, Sonali Acharjee Kolkata: Romita Sengupta; Bhopal: Rahul Noronha; Thiruvananthapuram: Jeemon Jacob ASSISTANT EDITOR: Zinnia Ray Chaudhuri pune: Aditi S. Pai PHOTO DEPARTMENT: Vikram Sharma (Deputy Photo Editor), Yasir Iqbal (Deputy Chief Photographer), Rajwant Singh Rawat (Principal Photographer), COVER STORY Chandra Deep Kumar (Senior Photographer); Mumbai: Mandar Suresh Deodhar (Chief Photographer), Danesh Adil Jassawala (Photographer); MODI’S Kolkata: Subir Halder (Principal Photographer); Chennai: N.G. Jaison (Senior Photographer) PHOTO RESEARCHERS: Prabhakar Tiwari (Chief Photo Researcher), Saloni Vaid (Principal Photo Researcher), Shubhrojit Brahma (Senior Photo Researcher) CHIEF OF GRAPHICS: Tanmoy Chakraborty NEW SWADESHI ART DEPARTMENT: Sanjay Piplani (Senior Art Director); Angshuman De (Art Director); Devajit Bora (Deputy Art Director); Vikas Verma (Associate Art Director); Bhoomesh Dutt Sharma (Senior Designer) DEAL Siddhant Jumde (Senior Illustrator) PRODUCTION DEPARTMENT: Harish Agarwal (Chief of Production), Naveen Gupta (Chief Coordinator) CHIEF OPERATING OFFICER: Manoj Sharma Can the Centre’s ASSOCIATE PUBLISHER: Anil Fernandes (Impact) `20 lakh crore financial Illustration by NILANJAN DAS IMPACT TEAM Senior General Manager: Jitendra Lad (West) stimulus and vision of General Manager: Mayur Rastogi (North), self-reliance revive Upendra Singh (Bangalore), Kaushiky Gangulie (East) GROUP CHIEF MARKETING OFFICER: Vivek Malhotra India’s Covid-stricken SALES AND OPERATIONS economy? Deepak Bhatt, Senior General Manager (National Sales) Vipin Bagga, General Manager (Operations) Rajeev Gandhi, Deputy General Manager (North) Syed Asif Saleem, Regional Sales Manager (West) S Paramasivam, Deputy Regional Sales Manager (South) Piyush Ranjan Das, Senior Sales Manager (East) ECONOM Y I N T E RV I E W H E A LT H Volume XLV Number 21; For the week May 19-25, 2020, published on every Friday l Editorial/Corporate Office Living Media India Ltd., India Today Group Mediaplex, FC-8, Sector-16A, Film City, Noida - 201301; Phone: 0120-4807100 24 DECODING THE STIMULUS Is it enough to put 32 ‘BOOSTER FOR MSMEs’ In conversation with 34 ARE WE READY? The lockdown has helped l Subscriptions: For assistance contact Customer Care India Today Group, C-9, Sector-10, Noida (UP)-201301; Phones: Toll-free number: 1800 1800 100 (from the economy back MSME and transport contain the spread of Covid, BSNL/MTNL lines); (95120) 2479900 from Delhi and Faridabad; (0120) 2479900 from Rest of India (Monday-Friday, 10 a.m.-6 p.m.); Fax: (0120) 4078080; on track? minister Nitin Gadkari but it’s still a long haul Mumbai: 022-66063411/3412, Kolkata: 033-40525327, Chennai: 044-24303200; e-mail: wecare@intoday.com l Sales: Direct all trade enquiries to General Manager (Sales), Living Media India Limited, C-9, Sector-10, Noida-201301 (UP) W E L FA R E MIGR A NTS M I N D YO U R M A N N E R S l Regd. Office: K-9 Connaught Circus, New Delhi-110001 40 46 60 l Impact Offices: 1201, 12th Floor, Tower 2 A, One Indiabulls Centre, (Jupiter A MIXED THE NEGLECTED LIFE AFTER Mills), S.B. 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UPFRONT FORCE MAJEURE: THE BOIS WHO WILL BEAR LOCKER ROOM THE LOSS? PG 10 SCANDAL PG 12 ON THE JOB A pharma factory in Navi Mumbai MILIND SHELTE L A B O U R L AW S THE FUTURE OF LABOUR By Kaushik Deka I n his televised address to the na- Meanwhile, in an apparent attempt the necessary stretch room to make tion on May 12, Prime Minister to resuscitate economic activity, and adjustments and survive the crisis. Narendra Modi looked past argu- even in the face of a flight of labour The most significant changes have ably more pressing questions to from the country’s big industrial cen- been announced in BJP-ruled Uttar focus our attention on the broad-sweep tres, several states have announced Pradesh, Madhya Pradesh and Gujarat, reforms he had in mind to reshape the their own industry-friendly tweaks to but states like Rajasthan and Punjab, Indian economy. A key area of reform, labour laws. The desperation among the where the opposition Congress is in he told us, was labour. India’s labour state governments is evident. The CO- power, have also tweaked their labour laws have often been seen as a big VID-19 pandemic has severely dented laws. UP has passed an ordinance impediment to economic progress. An the capacity of scores of industrial exempting businesses from the purview attempt was made last year to recodify units, which face closure if not allowed of most labour laws for the next three them, but it’s a work in progress and to restructure their wage bills. The legal years. Only the laws on construction still mainly restricted to central laws. rejig in laws, it is hoped, will give them workers, bonded labour, deployment M AY 2 5, 2 02 0 INDIA TODAY 5
UPFRONT of women and children and apply for renewals while factory timely payment of salaries have licences will be renewed once not been touched. In Rajasthan, MP, Gujarat, Himachal Pradesh, in 10 years instead of annually. Registrations and licences will THE LEGAL MAZE... Punjab, Odisha and Goa, work be issued within a day. In Guja- Around 45 central laws and nearly 200 shifts in factories have been rat, all industry approvals will state laws regulate the working conditions increased from eight hours to 12, be given online within 15 days. of labour in India with provisions for overtime. Delays in clearances are the In 2019, the Narendra Modi government Other changes such as the bane of business, and cutting streamlined 44 labour laws into a set of freedom to fire labour at will in turnaround time will no doubt four codes, as part of labour law reforms. While the Code on Wages Bill has been units that have less than 300 make them happy. “Relaxations legislated, the other three—Code on Oc- workers (this limit was set at in labour laws, and states mov- cupational Safety, Health and Working 100 earlier) are clearly intended ing towards a friendly labour en- Conditions; Code on Industrial Relations; to woo investors. In sync with vironment should go a long way and the Code on Social Security—are Modi’s vision of a self-reliant in making foreign companies pending before a standing committee in India, the states are promoting shift their factories from China the Lok Sabha the changes in labour laws as an to India,” says D.K. Aggarwal, These laws are, however, applicable to attempt to emerge as alternative president, PHD Chamber of workers in India’s formal sector. Close to manufacturing hubs to China in Commerce and Industry. 81 per cent of all employed persons are a post-Covid world. “Industrial in the informal sector, 18 per cent are in the formal sector and 0.8 per cent in the I reforms were long awaited. We ndia has around 45 central household sector labour laws and about 200 more formulated by states. A 2017 STUDY Industry is wary of this labyrinth BY THE V. V. and has often made the case that GOING INFORMAL GIRI LABOUR these laws are both anti-labour The complexity of labour laws has INSTITUTE SAYS and a disincentive to hiring more often prompted employers to go for workers. There is some merit in LABOUR LAW that argument as even the formal informal arrangements with workers even in the formal sector, underscoring AMENDMENTS sector, which by one estimate the need for labour reforms DO NOT ALWAYS accounts for 18 per cent of the ATTRACT BIG INVESTMENTS employed in India, is increasing- ly hiring workers without formal Workers 36.1 million OR CREATE JOBS contracts. Many believe that without revoking some of these outdated formal laws will allow industry to flour- contract plan to increase job opportuni- ish, which, in turn, will encour- ties by wooing investors to our age the creation of more jobs. 24.4 state. This is the right time to However, there is no em- million amend rules to attract indus- pirical evidence to suggest that tries willing to shift to MP,” labour laws are the main obstacle said state chief minister Shivraj to industrial growth or are en- Singh Chouhan. UP’s minister couraging informal labour ar- 13.1 for MSME, investment and ex- rangements. The Working Group million port promotion, Sidharth Nath of Experts of the Commission on Singh, says his state is geared up the Legal Empowerment of the to attract Japanese investments Poor, set up by the United Na- moving out of China. This follo- tions Development Programme wed his video-link interaction (UNDP) in 2005, did not find last week with Japanese ambas- conclusive evidence that rigid sador to India Satoshi Suzuki. labour laws force companies to 2004 2011 2017 Some steps announced by opt for informal employment. the states target bureaucratic Several European countries, Source: Ministry of labour and employment; red tape. In MP, for instance, where labour regulations are Periodic Labour Force Survey, 2017-18 start-ups will no longer need to significantly more liberal than Graphic by TANMOY CHAKRABORTY 6 INDIA TODAY M AY 2 5, 2 02 0
elsewhere in the world, too, have To mitigate the impact of witnessed massive informalisation COVID-19 and the lockdown on ...AND RECENT of work in the past three decades. Back home, a 2017 study by the V.V. workers, several labour experts recommend that the government AMENDMENTS Giri National Labour Institute in offer a stimulus to industry to sup- Several states have, of late, four states—Rajasthan, UP, Andhra port the wage burden and bring relaxed or abolished labour laws Pradesh and MP—found that about comprehensive reforms in in a bid to woo investments amendments to labour laws did not labour laws. Several countries have necessarily attract big investments, extended wage support to industry. UTTAR PRADESH: Industry has been exempted from all labour laws, boost industrialisation or create India, too, has taken measures in except the Building and Other Construc- more jobs. that direction. Starting April, in tion Workers’ Act of 1996, Workmen’s The move by several states to businesses that employ less than Compensation Act of 1923, Bonded relax or altogether suspend labour 100 workers, those earning below Labour System (Abolition) Act of 1976 laws has drawn criticism from trade Rs 15,000 per month are to receive and a section of the Payment of Wages Act of 1936 unions, opposition parties and 24 per cent of their monthly wages independent experts alike. “These in their provident fund accounts for RAJASTHAN: Amended the Indus- arbitrary actions by the states violate the next three months. Employees’ trial Disputes (Rajasthan Amendment) the minimum wage guarantee for Provident Fund (EPF) regula- Act, 2014, to raise the threshold for layoffs and retrenchment to units with labour, a right upheld by the Su- tions have been amended to allow 300 workers, from 100 earlier preme Court,” says Jeet Singh Mann, account-holders to cite the pan- a labour law expert, who teaches at demic as a reason and make a non- MADHYA PRADESH: Establish- the National Law University, New refundable withdrawal of 75 per ments with up to 100 workers can now hire as per need. New manufacturing Delhi. The Rashtriya Swayamsevak cent of their corpus or three months units have been exempted for the Sangh-affiliated Bharatiya Mazdoor of their wages, whichever is lower. next 1,000 days from all but some Sangh (BMS), too, has taken a dim The states can now use the building provisions of the Factories Act of 1948. view of the changes. “This is the and construction workers’ welfare Factory licences will be issued within worst time to amend labour laws. It fund to provide relief to registered 24 hours and renewals will be given for a decade instead of one year. Small will make workers more vulnerable construction workers. and medium enterprises (SMEs) can to job losses at a time the country Sharma believes the states be inspected only with prior approval should be joining hands to rebuild must now move beyond tempo- of a labour commissioner or if there is their lives and the economy hit by rary suspension of labour laws a complaint. Firms with less than 50 COVID-19,” said BMS president and bring forth the long-awaited workers have been freed from registra- C.K. Saji Narayanan. The BMS, reforms to create a conducive tion or inspection. which claims the affiliation of over environment for both workers GUJARAT: New industrial establish- 6,000 labour unions, said it will and employers. Even the BJP, last ments are exempted from labour laws, urge the Centre to prevail upon the month, submitted a report to the but have to adhere to the Minimum states to roll back their decisions. Union government, recommend- Wages Act of 1948, Industrial Safety Rules and the Employee’s Compensation Labour being a concurrent subject ing a review of labour and land Act, 1923 under the Constitution, states can acquisition laws to woo investors. frame their own laws, but these need Late last year, the Modi govern- MAHARASHTRA: Shops/estab- lishments/factories allowed to submit the Centre’s approval. ment streamlined central laws into consolidated annual returns in lieu of four codes—on industrial relations, E multiple returns xperts caution that the wages, social security and oc- abolition of labour laws will cupational safety. Parliament has TAMIL NADU: Units can employ women on the night shift, but have to create a hire-and-fire employ- passed only one code—the Code on ensure their safety ment model and further encourage Wages—while the other three are informalisation of the workforce. still hanging fire. The COVID-19 KERALA: New industrial licences to be issued within a week Job insecurity will push wages pandemic now leaves no scope for down, reducing consumption and, delay as fragile firms need hand- States such as MP, Gujarat, Rajast- eventually, demand in the economy. holding from the government and han, Himachal Pradesh, Punjab, Odisha “This will slow down the economic freedom from the legal maze. That and Goa have extended work shifts in factories from eight to 12 hours, with recovery. Workers’ interest and the Modi, in his May 12 address, men- provisions for overtime country’s interest aren’t two separate tioned land and laws as the two things,” says Prof. Alakh N. Sharma, other focal points of reforms comes an eminent labour economist. as no surprise. n M AY 2 5, 2 02 0 INDIA TODAY 7
UPFRONT Liquor Brawl P unjab chief minister Capt. Amarinder Singh had to ask chief secretary Karan Avtar Singh to sit out the May 11 cabinet meeting after three key ministers—Manpreet Badal, Charanjit Singh Channi and Tript Rajinder Singh Bajwa— said they wouldn’t attend if he was present. The three had a run-in with Avtar Singh last week over the state’s “faulty excise policy”. Allegations were also made about Avtar Singh’s son having interests in the liquor business. An unheard-of fallout: Punjab’s liquor vends are closed again till the issue is resolved. RUNAWAY LEADER SWADESHI BRAND AMBASSADOR A social media war is on between the ruling JD(U) and the opposition I n his May 12 address to the nation, Prime Minister Narendra Modi praised RJD in Bihar. JD(U) spoke India for achieving self-sufficiency in personal protection equipment sperson Nikhil Mandal accused RJD leader Tejashwi (PPE) for healthcare workers. But it’s the PM’s own endorsement of the Yadav of being a serial esca gamchha that’s making waves. Modi has sported one in most of his public pist, since he goes missing appearances since April 14, when he appeared in a Manipuri meitei lengyan from the capital every time (top left) to cover his face. He has worn several such Indian stoles to public there’s a disaster—from floods engagements, rarely repeating the same scarf. to the pandemic. RJD leader Mritunjay Tewari shot back, saying Tejashwi—currently locked down in Delhi—lives in the people’s hearts unlike Good Samaritan some of the ruling NDA lea ders. With state elections just six months away, we haven’t E xternal affairs minister S. Jaishankar recently heard the last on this one. won the gratitude of a family from Kerala in the UAE. The couple were struggling to get tickets to fly back home to perform the last rites of their fouryearold boy who had died of leukaemia. All the Vande Bharat flights to Kerala were full but the foreign minister responded immediately to a message from an Assambased doctor and friend of the family. The Indian consulate in the UAE not M ZHAZO only booked the family on a flight to Kochi but also paid for their tickets. BANDEEP SINGH —Sandeep Unnithan with Kaushik Deka, Anilesh S. Mahajan and Amitabh Srivastava
UPFRONT F O RC E M A J E U R E WHO BEARS THE LOSS? By Shubham Shankdhar T he owners of Magneto The has not declared COVID-19 a natural asked power generation companies, Mall, a major commercial disaster. If the government does so, with whom they have signed power centre in Raipur, are in a even we will be able to make insurance purchase agreements (PPAs), to stop peculiar bind during this claims to recover losses.” He is worried production, citing force majeure. They lockdown. Four or five big about his company’s ability to repay its have expressed ‘inability to pay until firms occupying floor space in the mall bank loans if this ambiguity persists. further notice’. The Association of have defaulted on payment of rent and “If nothing works out, we will have to Power Producers is crying foul, and maintenance expenses, citing losses take legal recourse,” he says. says this is a violation of the PPA. from shutdown of business. Pleading This is not even an isolated case. PVR, the country’s largest multiplex helplessness in the current circum- stances, the firms have all invoked the ‘force majeure’ clause in their THE CENTRE’S NOTIFICATION ON FEB. 19 contracts, which is legalese for a provi- sion that gives parties to a contract EXEMPTS ITS CONTRACTORS FROM PENALTIES temporary reprieve from fulfilling IF THEY FAIL TO MEET OBLIGATIONS DUE TO contractual obligations. COVID-19, BUT IT’S SILENT ON WHETHER THIS While the typical scope of force APPLIES TO PRIVATE BUSINESS DEALS AS WELL majeure does include ‘act of God’ events, such as wars and riots and epidemics such as the current one, the Across the country, the crippling chain, has asked all landlords to waive Indian government has yet to notify impact of the lockdown is seeing rent. PVR has more than 800 screens COVID-19 as a force majeure event. businesses increasingly invoke the in India and Sri Lanka. Anand Singhania, managing director force majeure clause—to either get a Hero MotoCorp, India’s largest of Magneto mall, may be clutching reprieve or even a waiver of contractual two-wheeler company, has held back at straws, but he is quick to point out commitments. Consider these: payments to vendors. this all-important detail: “Their (the In Uttar Pradesh, Punjab, Haryana, Even small businesses, such as crane renting firms) notices mention force Telangana, Madhya Pradesh and operators, are suffering. The Crane majeure even though the government Dadra and Nagar Haveli, discoms have Owners Association of India has 10 INDIA TODAY M AY 2 5, 2 02 0
UNCERTAIN TIMES A PVR theatre in New Delhi written to Union MSME min- is not robust, particularly house PIX ister Nitin Gadkari for relief, and shop tenancy agreements. flagging non-payment by clients He says one of his Delhi clients citing force majeure, among who had added ‘acts of govern- other grievances. ment’ to the force majeure clause The contracted players of in his agreement with a tenant Kolkata-based East Bengal FC will be insulated from losses due say they will move the Football to the lockdown. Players’ Association of India H against the club’s decision to olding an insurance policy revoke their contracts. may not guarantee relief. A Union finance ministry no- C.R. Mohan, national tification on February 19 said the head, property and risk engi- COVID-19 situation qualified as neering, Bajaj Allianz General a force majeure event, and gov- Insurance, says: “Who benefits RAJWANT RAWAT ernment contractors unable to from insurance on the basis of meet commitments due to supply force majeure will be determined disruptions from China would by the terms and conditions of be exempted from penalties. But the policy. The insurance com- the notice is quiet on whether pany will be paying only for the the same terms would apply risk against which it has taken to contracts between private premium.” Mohan underscores WHAT THE business entities. “The govern- ment’s attempt is to pre-empt another critical aspect. “Usually small businesses take policies LAW SAYS litigation. (A finance ministry like fire insurance for factories, memo directs all ministries to warehouses or stores because it is Force majeure is governed by treat disruption due to the virus mandatory to obtain bank loans. Section 32 of the Indian Contract outbreak as a natural calamity, But few go for a business inter- Act, 1872, and frees parties of contrac- providing relief to government ruption policy to cover losses due tual obligations in the event of a war, riot, epidemic or other ‘act of God’ contractors.) But it will apply to any reason.” (natural calamities). only to contracts where the Legal disputes appear highly government itself is a party,” says probable in the given situation. Section 56 of the Act relates to the Sunil Garg, CEO of Faridabad- Jeevesh Mehta, lead partner of ‘doctrine of frustration’, which refers to based law firm SSA Legal. “We Delhi-based law firm Maven Le- a change in circumstances that render it may also see public sector banks gal LLP Advocates and Consul- impossible to enforce a contract. “Par- extend reliefs such as deferral of tants, says, “The COVID-19 crisis ties use Sec. 56 when force majeure is [loan] instalments.” is well understood by all, so we not mentioned in their contracts,” says Can all businesses hope expect the focus to be on recon- legal expert Jeevesh Mehta. For instance, to get relief by invoking force ciliation. A large number of cases he says, if an event company had booked majeure? Jaspal Singh Sethi, may still reach the courts.” One a concert that was impossible to hold partner with the Delhi-based PS of his clients sent a legal notice to during the lockdown, it would be consid- Law Group, says, “Who gets re- a company that had contracted ered a ‘frustration of contract’ because lief and who does not depends on it to build a showroom, but then the contract cannot be executed. “In the terms of the contract.” Force wanted the contract nullified such a situation, the event company majeure will apply in the case when his client gave notice that would have to return any advance it of COVID-19 only if epidemics the lockdown would cause delay. may have taken.” are included under this clause “Each case will entail a different in the contract. Sethi points out set of problems. If parties fail that smaller entities could be in at reconciliation, there will be trouble as their legal paperwork litigation,” says Mehta. n M AY 2 5, 2 02 0 INDIA TODAY 11
UPFRONT instagram.com BOIS LOCKER ROOM SCANDAL BLACK MIRROR By KAUSHIK DEKA Illustration by NILANJAN DAS IT was towards the end of March and Prashant (name changed), an arts stream student in one of Delhi’s top private schools, had just finished his Plus 2 board exams and was all set to have “some fun”. But then COVID-19 and the lockdown spoilt all his plans and confined him to his room. Worse, the ‘fun’ has gone sideways and now he fears he’ll have to spend time in a police lock-up. Prashant was part of the now infamous Instagram group, ‘Bois Locker Room’, which came to light on May What happened in the 3 when a Delhi girl shared screenshots of the sexually explicit conversations in the group. The viral post had ‘Bois Locker Room’? students of Delhi’s prominent schools boasting about l In April, more than images are being shared their sexual escapades, sharing nude/ morphed pho- two dozen students l One girl posts a screen- tographs of girl students and bodyshaming them. “We from some of Delhi’s top shouldn’t have done what we did. It was a big mistake, but shot of the chat on her private schools become Instagram profile on May we are not criminals. There was no plan to rape anyone,” part of a private Insta- 3. It goes viral says Prashant, who will turn 18 in a few months. Delhi gram chatroom, where l Some others repost the Police cyber cell head Anyesh Roy corroborates this. The they discuss their sexual rape conversation, he confirmed, did not take place in the escapades, the physical chat, adding an unrelated Bois Locker Room; it was part of a Snapchat interaction, appearances of girls they Snapchat conversation know and share morphed between a boy and a girl, intriguingly between a girl and a boy. The girl, assum- photographs of some of where the girl, assum- ing the fake identity of a boy, was instigating the boy at ing the fake identity of a them nude the other end of the conversation to rape her to check his boy, is telling the boy to “strength of character”. The boy, thankfully, refused. l One boy, who is added rape her. This gets mixed But even though the ‘locker room’ boys did not plan a to the group, takes a up with the Bois Locker rape, the perverse sex talk did enough to hog the national screenshot of these Room conversation conversations and leaves headlines for a few days and refocus public attention on an l Two FIRs have been the group unsettling social problem that has a myriad dimensions: file filed. Police have de- l He tells his friends the proliferation of sexually explicit content on the inter- tained two participants net; the easy access teenagers and young adults have to it; about the chat group; of the chat group—an they contact the nine adult and a minor. the unregulated web traffic of this content via social media girls who are being com- Investigation is on. platforms; its effect on impressionable minds—and also mented on and whose how entrenched male privilege continues to (mis)shape gender stereotypes. In December 2019, eight students Advertising Business About How Search works
aged 13 and 14 were suspended from a school in Mumbai including removal of content that violated our commu- for the horrific content of their WhatsApp chats, which nity standards, and our ongoing efforts to create a safe included talk about “gang-banging” classmates. online experience for Instagram users,” a spokesperson So again we have it, the big question that pops up for Facebook, which owns Instagram, told india today. every time a scandal of this sort erupts. Is the digital But beyond the legal ramifications, the scandal has world we live in, more importantly the easy availabil- also exposed the communication breakdown among stu- ity of pornography, taking a heavy psychological toll dents, teachers and parents. Most schools tend to cover on children? Dr Suresh Bada Math, head of forensic up such incidents fearing a loss of reputation. Sunita psychiatry at NIMHANS in Bengaluru, says some stud- George, principal of Bombay Scottish School, says such ies do suggest that children could be more sensitive to instances are common across schools, but they aren’t sexually explicit material. Dr Nimesh Desai, chairman necessarily a gender issue. “The issue is about digital of the Institute of Human Behaviour and Allied Sciences ‘behaviour’ and long-term value education. Children (IHBAS)in Delhi, has a more nuanced view. He says share without thinking twice, without fear or concern individualistic pleasure-seeking behaviour is nothing for another. They know about digital footprints, but new. What has changed today are three things—ease habits and attitudes towards online behaviour cannot of access, repetitive media content and the engage- be changed overnight,” says George. Prashant maintains ment of all senses—and this is leaving a deeper impact that he was unaware of engaging in any criminal act. on the human psyche and behaviour. Children don’t “We were chatting among friends. We didn’t expect this even realise how it impacts their perception of what is to get out, so we typed whatever we felt,” he says. acceptable and what is not. “It isn’t about teaching them A moral values, but contemporary values. Issues of privacy, nd even though the principals and staff at the consent, understanding my pleasure has to stop when it Delhi schools involved argue that they can’t be impacts another person’s space. These must be taught to held accountable for what students do at home, children,” says Desai. there is now an acceptance that teachers and parents There is also debate on how social media platforms need to come together to sensitise their wards about pri- are adding to this menace, thanks to the legal opacity vacy, personal and shared spaces and a digital decorum in fixing accountability. Cyber law experts are demand- alert to the dangers of the online universe. “Parents need ing a revision of IT laws to make intermediary social to be involved a great deal more. If you are giving your platforms such as Facebook, Instagram and Twitter children access to a phone, you must also guide them on more accountable. Instagram, the intermediary in this its potential misuse,” says George. case, has removed the chat group, but many are of the Experts agree that parenting plays a key role in miti- view that this is not enough. “The responsibility doesn’t gating the harmful effects of explicit content. Parents end in deleting the group. Evidently, there was lack of must discuss sex, sexuality, gender-related issues with due diligence. Appropriate action must be taken against children and take steps to ensure there is a sensitive Instagram as it can be seen that the service provider approach towards these. “Children don’t understand the abetted the commission of these violations,” says cyber nature of social media. Open conversations around gen- law expert Pavan Duggal. The Delhi Police cyber cell der, sex, internet behaviour are as important as conver- registered an FIR on May 4 under multiple provisions of sations about diet or academics,” says Dr Upasana Chad- the Indian Penal Code, 1860, and Information and Tech- dha, a Delhi-based psychologist, adding that it is always nology Act, 2008, but has not pressed charges against the survivors of slut-shaming, blackmail or sexual abuse Instagram. The police has arrested the who seek therapy. It is rare to find an group administrator, an 18-year-old, “Children don’t offender doing so because they are and interrogated several members. understand the always being defended and often don’t Supreme Court lawyer Neela even realise their actions have caused gravity of social Gokhale says the perpetrators must be media. Open conver pain to another. But even as the law booked under the Protection of Children takes its course, the change must begin from Sexual Offences (POCSO) Act, sations around with parents talking to their children 2012, as the crime involves objectifica- gender, sex, internet and being categorical about what is tion of minors. The Delhi Commission behaviour are and is not acceptable—both in the real for Women (DCW) has also issued important today” and virtual world. And it must involve Instagram a notice. “We have responded Dr UPASANA CHADDHA sons as much as daughters. n to it, informing the DCW of our actions, Psychologist with Sonali Acharjee M AY 4,Privacy Terms 2 02 0 INDIA TODAY Settings 13
UPFRONT GUEST COLUMN AJAY BIJLI THE SHOW MUST GO ON H aving been in the cinema industry for the past 30 interventions are in order, and here are my recommendations years, I do have passionate views about its place in our for all stakeholders: lives as the most affordable and enjoyable out-of-home Following the example of other countries, the government entertainment, as also on reviving the fortunes of this industry. should consider: i) wage subsidies for the non-operational I’ll get to the specifics of how to engineer this revival presently period; ii) a waiver of GST—if not an exemption from all taxes but don’t judge my views by the title of this piece. (GST, show tax, LBT)—for a year after resumption of opera- The catastrophes of the past century did not prepare us tions; iii) interest-free loans for three years with a one-year for the depredations of this pandemic. Countries, govern- moratorium; iv) bringing COVID-19 within the ambit of force ments and world leaders are improvising solutions on the majeure provisions. run, and have responded disparately. But the so-called toss-up The film industry has a big role in ensuring that new mov- between lives and livelihoods baffles me. Without a doubt, ies continue to come to the big screen. OTT platforms, which life comes first, but livelihoods too need existed before COVID and will no doubt urgent attention. In a recent article in the thrive after, will never be able to bring Financial Times, Martin Wolfe writes: 60 per cent of the revenues the theatri- “Maintaining the lockdown and saving cal business generates. Besides, as Adam the economy are mutually compatible; it’s Aron, CEO of AMC Entertainment, artic- not a matter of protecting people or the ulated in a letter to the head of Universal: economy, but of protecting people and “Theatrical releases boost publicity, posi- the economy.” The trade-off between lives tive word-of-mouth, critical acclaim and and livelihoods is indeed a false binary. downstream revenues”. I fully understand the measures Cinema operators too need to reimag- taken by the Indian government so far to ine the theatre experience to allay people’s contain the spread of the virus. But the fears—measures are being planned world extended lockdown has also resulted in a over and we should adopt best practices, huge economic crisis—jobs have been lost among them: i) staggered programming and many businesses are either vanish- To resolve any stress to help maintain physical distance and ing or have reached a point of no return. glass barriers at transaction points; ii) between malls and After nearly six weeks of the lockdown, limiting physical interaction by digitising the lives-or-livelihood question is still theatres, the pandemic all payments, pre-packaging F&B items poignant, some would argue, but the gov- should be declared a from a truncated menu and promoting ernment has responded to the clamour to force majeure event self-service iii) medical check-ups for save the economy and a phased re-open- staff, deep cleaning and ULV sanitising ing is finally under way. of surfaces (a ULV or ‘ultra-low volume’ However, a simple go-ahead to resume operations is no cleaning protocol can create an anti-bacterial layer that lasts panacea for our economic woes; a lot more needs to be done. up to 30 days); iv) strong internal/ external communication to The worst-hit industries need some relief and a stimulus pack- maintain hygiene and answer customer queries. age to save them from irrecoverable long-term damage. In order to resolve any stress between malls and theatres, Coming to my own industry, exhibition cinema is the the real estate end of the industry, the pandemic should be entertainment staple for India and, in volume terms, the declared a force majeure event, and as Atul Ruia, managing largest in the world. No other country, including the US and director of Phoenix Mills, put it: only a certain “reasonable- China, has an annual turnover of 1,500 films and 1.5 billion ness” can ensure that the new arrangements don’t damage tickets! Content is one leg of our industry and real estate— either entity. shopping centres and malls—the other. Directly and indirectly, At the end of the day, after all the necessary precautions we employ over 400,000 people, and a slackening of content have been taken, it will be down to the consumer to ensure the creation for the big screen will have a domino effect on a lot show goes on. The safe confines of our homes cannot deliver of skilled jobs. On the other hand, as anchor tenants, if cin- the social experience we crave and need. n emas and multiplexes stop attracting audiences, it will impact the viability of malls and shopping centres. Some immediate Ajay Bijli is the chairman and managing director of PVR Ltd 14 INDIA TODAY M AY 2 5, 2 02 0 Illustration by RAJ VERMA
FOCUS EDUCATION VIT leads the change during the pandemic T he spread of COVID -19 is on the rise. In light of the current situation, Vellore Institute of Technology, Bhopal (VIT), School of Computing Science and Engineering (SCCE) has organised an online National Level Hackathon, ‘HackCoVIT 2020’. Aimed at helping people during the global pandemic, students up to Undergraduate level participated and exhibited their skills, from across 127 institutions from 19 different states in the event. The participants were given 32 problem statements, under five diverse themes to conceive solutions. Jury members included eminent leaders from companies like Google, Microsoft, Philips, Thomson Reuters, Robert Bosh, Payoda Technologies, thought-works, and Stealth mode. In a first, the institution has also released an advisory to become digitally safe during the corona crisis. The Division of Cyber Security and Digital Forensics, VIT Bhopal, working closely with the G Viswanathan Chancellor - VIT characters, with a combination of upper and lower Jury members included case letters, numeric and special characters is also helpful. One must also keep revise security keys and eminent leaders from wifi passwords and brush up softwares regularly. These guidelines are issued in the public interest companies like Google, by IPS Maithili Sharan Gupta (DGP, Police Reforms, Microsoft, Philips, Madhya Pradesh and Shishir Kumar Shandilya, Division Head of Cyber Security and Digital Forensic Kadhambari AVP - VIT Thomson Reuters, at VIT Bhopal University along with a team of B.Tech Cyber Security second year students. Robert Bosh, Payoda Police Academy in Bhopal describes precautionary The VITEEE (VIT Engineering Entrance Examination) measures such as practicing a zero-trust policy Technologies, thought- for admission to Engineering programmes this year while online, updating video conferencing software to their latter versions, keeping your passwords safe, works, and Stealth is scheduled for July 29 to August 2, 2020. It will be held in 119 cities across India and all central and and limiting unnecessary downloads to be safe from mode. state government regulations on social distancing scammers. Using strong passwords with at least 12 and hygiene will be strictly followed.
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COVER STORY L E A D E S S AY MODI’S NEW SWADESHI DEAL The prime minister unveils a Rs 20 lakh crore financial stimulus and vision of self-reliance. But will it revive India’s Covid-stricken economy? By RAJ CHENGAPPA P rime Minister Narendra Modi has the uncanny knack of turning ad- versity into opportunity. When he began his address to the nation on May 12—his fifth since he imposed an unprecedented nationwide lockdown—most expected him to dwell on how his government was handling the COVID-19 pandemic and on plans for an exit strategy. After all, the number of coronavirus cases since the country went into lockdown on March 25 had risen from 564 to 70,756, and over 2,293 Indians had died of the disease. The lockdown had already been extended twice and will complete 55 days on May 17 when the third phase ends. Yet, half the country’s 733 districts remain in the red and orange zones where most of the restrictions on movement will continue into Lockdown 4.0. With these districts accounting for as much as half of India’s GDP, the prospects for economic revival look bleak. More ominously, there are no signs of the infection curve flattening to indicate that the virus has been effectively contained. Rather than highlight these concerns as expected, the of Rs 20 lakh crore, equivalent to 10 per cent of the GDP, prime minister instead chose the occasion to present a to revive India’s Covid-stricken economy. This is almost soaring vision of India’s ability to emerge as a strong, self- double the amount most experts had been demanding reliant nation that will also be a world leader. To quell the at the beginning of the lockdown. Terming the package rising sense of disbelief his words may have provoked, he Atmanirbhar Bharat Abhiyan (Self-reliant India cam- talked money, announcing a financial stimulus package paign), Modi also promised to undertake “quantum” Illustration by NILANJAN DAS M AY 2 5, 2 02 0 INDIA TODAY 17
COVER STORY L E A D E S S AY reforms for the economy. “Our responsibility to make the nance with the Bharatiya Janata Party’s ideological moor- 21st century the century of India will be fulfilled by the ings. Its parent body, the Rashtriya Swayamsevak Sangh pledge of a self-reliant India. This will be a new vow for (RSS), has long proclaimed the need for a ‘Swadeshi’ or every Indian,” he declared. home-grown model of economic development as a project Inevitably, the Opposition ripped into Modi’s speech. close to its heart. However, lest the slogan be construed Congress leader Jairam Ramesh tweeted, “The prime as signalling an insular turn, Sitharaman was quick to minister did what comes to him best—Maximum Packag- clarify that Mission Swadeshi was not about turning away ing, Minimum Meaning. It was a case of classic NAMO: from the world. “When the prime minister said self-reliant No Action Messaging Only.” India,” she said, “he did not want to make India an isola- tionist country. The intention is to take local brands and H owever, that the prime minister meant make them global. To have the capability to build enter- business was evident from the very next prises that will help the world.” Indeed, some observers day as his finance minister, Nirmala Sith- saw the swadeshi tag as a cover to pre-empt resistance araman, began daily announcements of from Sangh Parivar organisations over some of the bold financial packages and reforms. By May reforms he proposed to unveil. 15, she had listed Meanwhile, given the distinctly packages for urban Nehruvian ring to both self-reliance migrants and farmers and sectors such and swadeshi, many industrialists fear as Micro Small and Medium Enter- prises (MSMEs), real estate and power. OBSERVERS FEEL THE a Great Leap Backward. As Ramesh Vaswani, an industrial consultant, More is expected for the education, SWADESHI TAG IS A said, “It symbolised a system of manu- coal mining and manufacturing sec- tors in the coming days. While many COVER TO PRE-EMPT facturing that followed outdated and antiquated practices, governed by the in the MSME sector were unhappy RESISTANCE FROM heavy hand of bureaucracy. Self-reli- that they did not receive any direct fi- nancial support, other experts criti- THE SANGH PARIVAR ance and the protectionist policies of the past saw industries turn inefficient cised the government’s stimulus pack- OVER THE BOLD both in terms of production and costs, ages for relying more on easing of credit facilities and moratoriums on REFORMS PM MODI making consumers suffer. It would be a non-starter if this government goes loans rather than infusing hard cash PROPOSED TO UNVEIL back to that.” Piyush Goyal, the Union benefits directly to the needy as many minister of commerce and railways, advanced countries had done (see ac- however, dismissed all fears of the gov- companying reports). ernment turning protectionist. Speak- Yet despite the complaints, the prime minister’s ad- ing at a university event soon after, he clarified, “Self-reli- dress sent out three major signals on how he plans to ance is about working and engaging with the world from conduct the twin battles of containing the coronavirus and a position of strength. It’s about your own self-confidence, reviving the flailing Indian economy in the months ahead. that you are not dependent or overly-dependent on the On the health front, he indicated that India would have to rest of the world. It’s about the confidence of the nation learn to live with COVID-19 and that it was imperative to that you can produce quality products in a cost-effective resume economic activity. As he put it: “Ladenge bhi aur manner, that you can compete with anybody in the world badhenge bhi (We will fight, and we will grow).” When it even with the disadvantages we face.” came to relief, he made it evident that there would be no The Sangh Parivar affiliates india today spoke to free lunches for anyone except the truly needy and the gov- were vehement that they were not going down the path ernment would instead fund measures that would encour- Nehru and Indira Gandhi followed. Ashwani Mahajan, age sustainable growth. Most importantly, by enunciating convenor, Swadeshi Jagran Manch (SJM), which wields the goal of self-reliance, the prime minister signalled a considerable influence in government policy-making, fundamental resetting of his government’s economic said, “The RSS had consistently opposed the Congress de- vision to meet the challenges posed by a Covid-stricken pendence on the public sector in the initial 40 years after world where no one knows how long the pandemic will Independence and was even against bank nationalisation. last and when life will return to normal. The fact is, after its model failed, the Congress did not fall Self-reliance is a vision that has always been in conso- back on domestic private entrepreneurship to deliver but 18 INDIA TODAY M AY 2 5, 2 02 0
WITH A CALL FOR SELF-RELIANCE, MODI IS RESETTING INDIA’S ECONOMIC VISION TO MEET THE CHALLENGES POSED BY A COVID- HIT WORLD THE BIG PICTURE Prime Minister Narendra Modi during his May 12 televised address to the nation preferred foreign ones without trusting our own people Donald Trump’s victory, he believes, was an outcome of to do so. The prime minister’s self-reliance campaign puts the diminishing trust in globalisation to deliver and the the trust back in the people of India—that’s the differ- growing consensus that patriotism and nationalism were ence.” Mahajan is, in many ways, echoing the philosophy better answers to economic development. The pandemic propounded by the SJM’s founder, the late Dattopant only sharpened that distrust, with every country waging Thengadi. In his book, The Third Way, Thengadi wrote, its own battle to stem its spread. The other reason Guru- ‘Swadeshi is the outward practical manifestation of pa- murthy advances is: “When the prime minister began his triotism. Patriotism is not considered isolationism nor are first term, he hadn’t attained the kind of stature he now patriots against internationalism. Their pleas for national has on the global stage: a confident, mature world leader self-reliance are not incompatible with internationalism backed by the importance of India’s economic growth.” provided the latter is on equal footing with due regard to Those who work closely with Modi say nothing he says the national respect of every country.’ or does is casual or impulsive—there is much deliberation and consideration behind his every move. The process A ccording to S. Gurumurthy, editor of of formulating both a relief and reform package, india Thuglak and a key Sangh ideologue, the today learns, had been in the works for weeks even as the swadeshi model of development holds pandemic raged on. To his credit, Modi had sensed that that “there has to be a cultural underpin- coronavirus would emerge as a threat in January itself, ning to economic development unlike the soon after the World Health Organization had first noti- western model that insists on one size fits fied the virus outbreak on January 5. When he first men- all”. So, why did Modi require a pandem- tioned the virus at a cabinet meeting, Nitin Gadkari, his ic to launch the swadeshi model and not do so in his first colleague, recalls that most of them didn’t take the threat term itself? Gurumurthy suggests two reasons. Globalisa- too seriously but weeks later would acknowledge to Modi tion, he says, works only if there is mutual trust between that he was spot on. nations, but has been in retreat in the past decade or so As early as January 25, Modi got his principal secre- because the distrust between nations, particularly after tary, Dr P.K. Mishra, to convene an inter-ministerial meet- the 2008 economic meltdown, made it unsustainable. ing of officials from the external affairs, home, health and M AY 2 5, 2 02 0 INDIA TODAY 19
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