What’s in today’s article?

• Why in news?
• What is the Foreign Contribution (Regulation) Act (FCRA)?

Why in news?

The Ministry of Home Affairs (MHA) extended the validity of the Foreign Contribution (Regulation) Act (FCRA) registration of non-government organisations (NGOs) and associations till June 30.

The Ministry has extended the validity of NGOs at least nine times since 2020 as the applications could not be processed within the stipulated time frame.

Registrations of many NGOs are up for renewal since September 29, 2020. The registration, mandatory to receive foreign funds, is renewed every five years.

What is the Foreign Contribution (Regulation) Act (FCRA)?

• Background:
  • During the Emergency in 1976, the FCRA was enacted in response to concerns that foreign powers were interfering in Indian affairs by pumping money into the country through independent organisations.
  • The law sought to regulate foreign donations to individuals and organisations in order for them to function in accordance with the values of a sovereign democratic republic.
  • In 2010, the FCRA was amended to consolidate the law on the use of foreign funds and the Foreign Contribution (Regulation) Rules (FCRR), 2011, were notified.
    • It is implemented by the Ministry of Home Affairs (MHA), which canprohibit the use of foreign funds for any activities detrimental to national interest.
  • The law was amended again in 2020, giving the government tighter control and scrutiny over the receipt and use of foreign funds by non-governmental organisations (NGOs).
• Salient features:
  • The FCRA requires every person or NGO seeking to receive foreign donations to be:
    • Registered under the Act.
    • To open a bank account for the receipt of the foreign funds in State Bank of India, Delhi.
    • To utilise those funds only for the purpose for which they have been received and as stipulated in the Act.
    • To file annual returns and must not transfer the funds to another NGO.
  • The Act prohibits the receipt of foreign funds by
    • Candidates for elections, 
    • Journalists or newspaper and media broadcast companies, 
    • Judges and government servants, 
    • Members of legislature and political parties or their office-bearers, and 
    • Organisations of a political nature.
• Registration under FCRA:
  • NGOs seeking foreign funding must submit an online application in a prescribed format, along with the necessary documentation.
  • Individuals or organisations with specific cultural, economic, educational, religious, or social programs are eligible for FCRA registration.
  • Following the NGO's application, the MHA conducts background checks on the applicant through the Intelligence Bureau and processes the application accordingly.
  • The MHA must approve or deny the application within 90 days.
  • FCRA registration is valid for 5 years after it is granted. NGOs are expected to apply for renewal within 6 months of their registration expiry date.
• Cancellation of registration:
  • The government reserves the right to revoke any NGO's FCRA registration if it discovers a violation of the Act.
  • Registration can be revoked if -
    • The NGO has not engaged in any reasonable activity in its chosen field for the benefit of society for two consecutive years or if it has become defunct.
    • In the opinion of the Central Government, it is necessary in the public interest to revoke the certificate, etc.
    • An audit uncovers irregularities in an NGO's finances, such as the misutilisation of foreign funds.
  • No cancellation order can be issued unless the person or NGO involved has been given a reasonable opportunity to be heard.
  • Once an NGO's registration is cancelled, it is ineligible for re-registration for 3 years.
  • The ministry also has the authority to suspend an NGO's registration for 180 days pending an investigation and to freeze its funds.
  • All government orders can be challenged in the High Court.

Q1) What are non-governmental organisations (NGOs)?

Non-governmental organizations (NGOs) are independent organizations that are not established by the government. They are also known as civil society organizations. They are typically non-profit institutions that focus on social, cultural, environmental, and educational issues. They can be established on community, national, and international levels to serve a social or political goal.

Q2) What is Ministry of Home Affairs (MHA)?

The Ministry of Home Affairs, or simply the Home Ministry, is a ministry of the Government of India. It is mainly responsible for the maintenance of internal security and domestic policy. It is headed by Minister of Home Affairs.

Source: Government extends validity of FCRA registration of NGOs till June 30 | Indian Express

What’s in Today’s Article?

• Why in News?
• Internet Shutdowns in India
• Comparing India’s Position with the Global Trends
• Laws Invoked by the Union Government to Suspend Internet
• Criticism of the Indian Government
• Way Ahead for the Indian Government

Why in News?

For five years in a row, India has topped the globe in imposing internet bans, accounting for over 60% of all blackouts reported between 2016 and 2022.

Though the State imposed internet shutdowns in the last decade have cited national security and threats to public order, rights groups have criticised these shutdowns.

Internet Shutdowns in India

• According to data collected by the Software Freedom Law Centre (SFLC), the Indian government imposed a total of 780 shutdowns between 2014 and 2023.
  • Data shows India shut down the internet for over 7,000 hours in 2023.
• Internet disruptions in India accounted for more than 70% of total worldwide economic losses in 2020.
• Shutdowns increased during the protests against the Citizenship Amendment Act in 2019, the abrogation of Article 370 in 2019, and the introduction of Farm Bills in 2020.
• Regionally, J&K saw the highest number of shutdowns (at 433) in the last 12 years.
  • The longest blackout in 2023 took place in Manipur from May to December, amid ethnic clashes.
  • As of February 15 this year, internet shutdowns were active in Haryana amid the farmers’ protests.

Comparing India’s Position with the Global Trends

• According to the latest Freedom House report, global internet freedom has declined for the 13th consecutive year, and the environment for human rights online has deteriorated in 29 countries.
• The majority of internet outages in the last decade in India were localised to specific districts, cities and villages.
• The trends differ globally: protests are the most common reason for internet shutdowns, followed by information control and political instability.

Laws Invoked by the Union Government to Suspend Internet

• According to the Indian Telegraph Act, Indian States and UTs can impose an internet shutdown only in case of a “public emergency” or in the interest of “public safety”.
  • However, the law does not define what qualifies as an emergency or safety issue.
• Between 2015 and 2022, the biggest share of content censored was done under Section 69A of the IT Act by the Ministry of Electronics and IT and the Ministry of Information and Broadcasting.
• URLs were blocked due to links to organisations banned under the Unlawful Activities (Prevention) Act.

Criticism of the Indian Government

• The Union government invoked powers under British-era laws to suspend mobile internet as Punjab farmers are holding protests in Delhi.
• Activists have pointed out that India failed to meet the ‘three-part test’ in imposing blackouts in J&K and Manipur.
• Under international law, to block any access to content or invoke coercive measures that violate people’s fundamental rights, countries should check -
  • If the action is provided for by law;
  • Pursues a legitimate aim; and
  • Follows standards of necessity and proportionality.

Way Ahead for the Indian Government

• The Supreme Court, in the landmark Anuradha Bhasin v. Union of India case, reiterated that internet shutdowns violate fundamental rights to freedom of expression.
  • According to the apex court, shutdowns lasting indefinitely are unconstitutional.
• Governments must make shutdown orders public, a provision poorly complied with.

Q1) What is Section 69A of the IT Act?

Section 69A of the IT Act 2000 empowers the Government to block information from public access under specific conditions of: interest of sovereignty and integrity of India, security of the State, friendly relations with foreign States or public order, etc.

Q2) How is the right to access the internet recognised in India?

According to the Supreme Court of India, the right to access internet was a fundamental right under Articles 19(1)(a) and 19(1)(g) of the Constitution, which provide protection to freedom of speech and expression as well as the freedom to engage in any profession/ business/ occupation via Internet.

Source: Measuring Internet freedom in India in the last 10 years | Forbes India

What’s in Today’s Article?

• Why in the News?
• About GeM Portal
• Objectives of GeM Portal
• Who Can Register on GeM Portal as Buyers & Sellers?
• Advantages of GeM Portal
• Challenges of GeM Portal
• News Summary

Why in News?

The procurement of goods and services through the Centre’s Government e-Market (GeM) portal has crossed Rs 4 trillion so far, this fiscal year.

This testifies to the portal’s unique digital capabilities and functionalities that have facilitated greater efficiency, transparency, and seamlessness in public procurement.

About GeM Portal

• Government e-Marketplace, shortly known as GeM, is a digital platform that enables buying and selling of goods and services.
• It is the Public Procurement Portal for procurement of goods and services for all Central Government and State Government Ministries, Departments, Public Sector Units (PSUs) and affiliated.
• The portal was launched in August 2016, by the Ministry of Commerce & Industry.
• The purchases through GeM by Government users have been authorised and made mandatory by Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.
• The sole purpose of GeM is to enhance efficiency; transparency and speed in public procurement.

Objectives of GeM Portal

• To increase efficiency, transparency and speed in public procurement.
• To provide multiple modes of procurement like direct purchase; bidding with reverse e-auction; e-bidding and direct reverse auction.
• To make ministries/ government departments to mandatorily procure goods and services from the portal.
• To enable efficient price discovery; economies of scale and dissemination of best practices.

Advantages of GeM Portal

• For Buyers:
  • A higher range of product varieties is available on the portal which enhances the customer’s choice.
  • Transparency of price and listing of various products for individual categories of goods as well as services.
  • Price comparison of multiple suppliers.
  • User-friendly dashboard for buying; monitoring supplies as well as payment.
• For Sellers:
  • Sellers gets easy access to the National Public Procurement market.
  • Direct access to various government departments and government organizations.
  • Easy access to participate in bids/ reverse auction.
  • In case of rejection of goods, the seller will be able to view the reason for said rejection.

Challenges of GeM Portal

• Registration/Onboarding Process:
  • The biggest challenge faced by informal sector women workers is the onboarding process.
  • These workers rarely have the requisite documentation (especially GSTIN or PAN cards) to onboard on GeM.
  • Further, the current registration process is lengthy and requires large amounts of documentation.
  • Recommendation:
    • The registration process needs to be streamlined and rationalised.
    • For example, steps taken by the MSME Ministry to streamline common registration processes for GeM, TReDS and Udyog Aadhaar through their Udyam Portal is a move in the right direction.
    • Likewise, reducing the documentation burden to a minimum and allowing the option of completing one’s registration without a PAN card or GSTIN (which can be progressively added later) could benefit more informal sector enterprises to participate on GeM.
• Government Pricing Mandate:
  • Many product/service offerings are not feasible for our members due to low mandated prices set by various government departments.
  • The current system on GeM also mandates a compulsory minimum discount of 10%, even on small order quantities.
  • Coupled with GST and shipping charges, this makes the cost to suppliers prohibitive.
  • Most enterprises struggle to cover their overheads, let alone make a tenable profit.
  • Recommendation:
    • Procurement through GeM should be more dynamically priced taking into consideration market rates and estimates from previous orders.
    • Apart from lifting such pricing mandates, the restriction of compulsory discounts and match prices to bulk orders is another way of making the fulfilment of government orders feasible for many low-margin micro and small enterprises.
• Location Matching:
  • The available bids are often for distant locations, which not only eliminates the limited profit margin, but also starts cutting into the cost of production.
  • Recommendation:
    • Matching government orders to local vendors is a first step towards rectifying this issue.
    • This will also reduce the time taken and distance covered by products and services due to shipping in keeping with the ideals of the Vocal For Local campaign.

Conclusion

By creating access to market, GeM has been exceptionally successful in breaking down the cartel of established and renowned service providers, paving way for small domestic entrepreneurs to participate in government tenders from anywhere at any time.

Q1) What is e-Shram Portal?

Central Government has developed eShram portal which is a centralized database of unorganized workers seeded with Aadhaar.

Q2) Does FCI procure paddy or rice?

The Food Corporation of India (FCI) along with state agencies undertakes procurement of paddy and wheat under price support scheme. Paddy is procured and converted into rice through milling.

Source: Procurement through centre’s GeM portal crosses Rs 4 trillion mark in FY24 | PIB