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OBCs earning over Rs 6 lakh annually won't get quotas

[email protected] (TNN)
March 16, 2013

OBCs_EaringNew Delhi, Mar 16: OBCs earning over Rs 6 lakh annually will not be eligible for reservations in jobs and education with a group of ministers on Friday deciding to raise the 'creamy layer' bar from Rs 4.50 lakh as part of the revision done every four years.

The increase, however, marks a setback for the 'backward lobby' of ministers that blocked the proposal for fixing creamy layer at Rs 6 lakh in the Cabinet last June, arguing it did not reflect the fall in value of currency and inflation. 'Creamy layer' is the income limit beyond which OBCs are not eligible for quotas.

A group of ministers headed by P Chidambaram is learnt to have weighed in favour of retaining the income level suggested by social justice ministry that ran into resistance in the Cabinet last year. It included HRD minister Pallam Raju, social justice minister Selja and MoS in PMO V Narayanasamy.

While there were murmurs that the bar be raised further, the finance minister argued that keeping the quota net too high would crowd out the genuinely poor and the needy among backwards.

The higher the income ceiling, more the people would qualify for reservations with a greater inclusion of affluent sections. It is seen to disadvantage the poor among OBCs.

While the creamy layer would be final only once approved by the Union Cabinet, Narayanasamy's presence in the GoM suggests a sense of finality.

Narayanasamy, along with petroleum minister Veerappa Moily and overseas Indian affairs minister Vayalar Ravi, had opposed the Rs 6 lakh proposal in the Cabinet, saying it be at least Rs 7 lakh. The resistance forced the prime minister to refer the issue for consultations.

The Chidambaram-led ministerial panel's move to keep a "uniform Rs 6 lakh salary bar" is way below the recommendation made by National Commission for Backward Classes that it should be Rs 12 lakh in urban areas and Rs 9 lakh in rural areas.

The social justice ministry is learnt to have rebuffed NCBC on various counts. It argued against dual creamy layer for rural and urban areas, and questioned the panel for not doing due diligence.

The income ceiling was introduced at Rs 1 lakh in 1993 and was revised to Rs 2.50 lakh in 2004 and Rs 4.50 lakh in 2008.

As against NCBC's suggestion of Rs 12 lakh that reflected Mandal satraps' long-held aversion for the concept of creamy layer, the Centre seems to have been deterred by the backlash of a huge hike.

While there can be judicial challenge arguing that setting the bar too low is designed to neutralize the income ceiling, there are fears in the ruling dispensation that quota for rich OBCs would lead to demands from upper castes that their poor too be given reservations.

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News Network
July 1,2020

New Delhi, Jul 1: Jet fuel or ATF price on Wednesday was hiked by 7.5 per cent, the third increase in a month, while petrol and diesel rates were unchanged for the second day in a row.

Aviation turbine fuel (ATF) price was hiked by Rs 2,922.94 per kilolitre (kl), or 7.48 per cent, to Rs 41,992.81 per kl in the national capital, according to a price notification by state-owned oil marketing companies.

This is the third straight increase in ATF prices in a month. Rates were hiked by a record 56.6 per cent (Rs 12,126.75 per kl) on June 1, followed by Rs 5,494.5 per kl (16.3 per cent) increase on June 16.

Simultaneously, non-subsidised cooking gas LPG rates were increased by Re 1 to Rs 594 per 14.2-kg cylinder in the national capital. Prices were up by Rs 4 in other metros mostly because of different local sales tax or VAT rate.

On the other hand, petrol and diesel prices were unchanged for the second day in a row.

This, after diesel rates scaled a new high after prices were hiked 22 times in just over three weeks.

In Delhi, a litre of petrol comes for Rs 80.43 per litre, while diesel is priced at Rs 80.53 per litre.

Rates vary from state to state depending on the incidence of local sales tax or VAT.

While the diesel price had been hiked on 22 occasions since June 7, petrol price had been raised on 21 occasions.

The cumulative increase since the oil companies started the cycle on June 7 totals to Rs 9.17 for petrol and Rs 11.14 for diesel.

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Agencies
August 6,2020

Mumbai, Aug 6: Former Reserve Bank of India governor Raghuram Rajan said on Thursday that overly focusing on what sovereign rating agencies think can take one's eyes off what needs to be done for the economy.

"It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that," Rajan told the Global Markets Forum.

India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government's measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody's cut India's rating and outlook in early June followed closely by a change in outlook from Fitch.

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year and is widely expected to cut rates by another 25 bps later on Thursday.

"The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government's court to do more," Rajan said.

He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.

"And I think that's where it has to focus its attentions, because resources, as you well know, are limited in India today."

Recently analysts, however, have cited the growing possibility the RBI may prefer to pause and cut rates only at its October meeting.

Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.

"What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus," Rajan said.

"And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy".

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News Network
March 26,2020

New Delhi, Mar 26: The total number of people who have been confirmed positive for COVID-19 in India has risen to 649 in India, including 593 active cases and 42 people who have been cured or discharged from hospitals, according to the recent update by the Union Ministry of Health and Family Welfare (MoHFW) on Thursday morning.
The death toll due to the novel coronavirus in the country has reached 13, the official data reported. There have been 3 more deaths due to COVID-19 reported in the country since last evening.
An 85-year-old woman in Gujarat died yesterday while with the passing away of a 65-year-old woman, Madhya Pradesh reported its first COVID-19 death. Tamil Nadu also reported its first death in the state yesterday due to the deadly infection.
According to report from the Indian Council of Medical Research (ICMR) India had tested 24,254 people as of 8 p.m. on March 25.
The country is now in its second day of a 21-day lockdown that was announced by the Prime Minister Narendra Modi on Tuesday to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.
The central government had on Wednesday announced that it will provide 7 kg ration to 80 crore people in India. The Centre also said that it has earmarked Rs 1.80 lakh crores for providing wheat at Rs 2 per kg and rice at Rs 3 per kg
"Union Cabinet has decided to provide wheat at Rs 2 per kg which is worth Rs 27 per kg and rice at Rs 3 per kg which is worth Rs 37 per kg. A total amount of Rs 1 lakh 80 thousand crores is being spent for the cause. The amount will be given in advance to the states for the coming 3 months," Union Minister Sadananda Gowda said yesterday.
Those shops which are catering to essential services will continue doing so during the 21-day nationwide lockdown.

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