March 3, 2021

NITI Aayog recommends reducing food security law coverage to save on subsidies

Rights: Government think tank NITI Aayog has recommended reducing the coverage of population served under the National Food Security Act (NFSA) 2013 in order to save INR 47,229 crore in subsidies annually.

The recommendation is reportedly part of a discussion paper that has been circulated to concerned departments.

Under the Act—which presently covers 67 percent of the country’s total population—approximately 70.35 crore persons from priority households or those who hold ration cards, are entitled to five kilos of food grains per person per month, and each Antyodaya Anna Yojana household, covering approximately 9.01 crore persons, is entitled to 35 kilos of food grains per month.

The Planning Commission, which was replaced by the NITI Aayog in 2014, had determined the state-wise coverage ratio of the NFSA based on the rural and urban coverage ratio of 75:50. This was done using the National Sample Survey Household Consumption Expenditure coverage under food security law survey data for 2011-12. The coverage ratio has not been revised since the law came into effect on July 5th, 2013.

The NITI Aayog discussion paper estimates that if the rural-urban coverage ratio remains the same at 75:50, then updating the population numbers from Census 2011 to the present level (projected population in 2020) will expand the total number of people covered in the NFSA from the existing 81.35 crore to 89.52 crore.

On the other hand, if it is reduced to the recommended ratio of 60:40, the number of persons served will come down to 71.62 crore. Therefore, apart from reducing the coverage, the think tank has also recommended updating the population level which is currently based on Census 2011.

The paper suggests using the savings from the reduction in food subsidy  for “other important areas of concern such as health and education, especially in the present pandemic time”.

Read this article on how improving crop insurance schemes for farmers can help achieve food security and reduce poverty in the country.


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.