April 28, 2021

Migrants who returned to urban areas earned five-times more than those who stayed back

Livelihoods: Migrant workers who returned to cities in search of work post the first lockdown earned approximately five-times more than those who decided to stay back. Furthermore, the lockdown-driven exodus affected migrant women more than men.

These findings are from a survey conducted by researchers from Yale University and the Inclusion Economics India Center at KREA University. They tracked 5,000 migrants across north and central India from April 2020 to February 2021 with a focus on Bihar and Chhattisgarh as ‘source states’.

According to the survey, only 45 percent of female migrants, and 55 percent of male migrants returned to their workplaces in urban India.

Male and female migrants who returned to their urban workplaces, after the first lockdown, managed to earn up to 90 percent and 72 percent of their pre-pandemic earnings respectively. On an average this came up to INR 2,355 a week or 85 percent of their earnings.

Compared to this, male and female migrants who stayed back in their villages earned only 23 percent and 13 percent of their pre-pandemic incomes. This translates into an overall average of up to INR 451 a week or 18 percent of their pre-pandemic incomes.

With the devastating second wave of COVID-19 threatening another migrant exodus, policy efforts need to be directed towards ensuring they stay in urban areas, with an extra focus on women migrant workers.

“Those who remained at home in rural areas were more likely to report being unemployed, reducing food consumption, mortgaging, or selling assets, spending down savings, and taking loans to make ends meet. To the extent it is possible to help those who returned to urban areas remain in cities through localised lockdowns, such as by providing economic support through employers and rations, we can protect migrants from another costly return to rural areas and enable a speedier economic recovery,” the report states.

Read this article to understand how labour rights have worsened post-lockdown.


May 20, 2021

Home Ministry extends validity period of FCRA registration certificates

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.


May 20, 2021

Corporate spending on oxygen support and medical equipment now counts as CSR

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.