Friday, 31 May 2013

Quotable Quote and Message of the Day

"Twp places are the most valuable in the World" The nicest place to be in someone's THOUGHT and the safest place is to be in someone's PRAYER

Thursday, 30 May 2013

Free Essays for Competitive Exams-Say no to Tobacco

Say no to Tobacco
(31st May is Anti Tobacco Day)

Nearly six million people across the world die because of direct or indirect use of tobacco every year and the figure could go up to eight million by 2030 unless urgent action is taken says WHO.   In India one out of 10 Indian adults dies of tobacco related diseases and Tobacco is cause for 1.5lakh cancers, 4.2 million heart diseases, and 3.7 million lung diseases every year. Our country has one of the highest rates of oral cancer. 

 According to Tobacco Intervention Initiative statistics, 4300 lakh tobacco is consumed in the form bidis, chewing tobacco, gutka and snuff and smoking cigarettes. Fourteen crore men and 4 crore women are addicted to tobacco in India according to official figures.  Over half of the male population around 57 per cent in the age group 15-49 years uses tobacco in some form and over one tenth of women in this age group also use tobacco. More than 5,000 youth in our country take to tobacco use every day.

The health ministry estimates that by 2020, tobacco will be responsible for 13% of all deaths in India and says that without any intervention, more than 38.4 million bidi smokers and 13.2 million cigarette smokers are likely to die prematurely. Second-hand smoke also remains a big problem. The misconception about certain tobacco products being safe also encourages many to consume tobacco in one or another form.

India launched the National Tobacco Control Programme in the 11th five year plan. It has ratified the WHO convention on tobacco control which recommends several strategies to reduce the demand and supply of tobacco.  India was among the first few counties to set up a chain of tobacco cessation clinics at the district level. Several legislations are also in place for reducing tobacco usage and manufacture. These include Regulations of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations of 2011, made under the Food Safety and Standards Act and Cigarette and other Tobacco Products (Packaging and Labelling) Amendment Rules, 2012. 

As  per  the Regulations of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations of 2011, made under the Food Safety and Standards Act,gutka, zarda, pan masala, gul, bajjar and such other toxic and addictive forms of chewing tobacco are mandated to be banned by various states.

Although 24 states and five union territories have so far banned gutka and paanmasala containing tobacco, there is a question mark over the implementation of the ban. Whether it is the capital Delhi or other town   where the ban is in place, gutka is being either sold openly or clandestinely in different names and pouches which is the people addicted to are even willing to pay a higher price.

            The Supreme Court had last month sought compliance reports from all state governments that have banned the sale and manufacture of gutka and paan masala containing tobacco.

 According to the new Cigarette and other Tobacco Products (Packaging and Labelling) Amendment Rules, 2012, notified on September 27, 2012, all tobacco product packs in the country are to carry new pictorial warnings which focussed in detail the portion of the human body affected by tobacco use.

The health ministry had also for the first time inserted the word 'Warning' in the new pictorial warnings and mandated that this word be printed in 'red' colour along with the messages - 'Smoking kills' and 'Tobacco kills'.

The new notification makes it mandatory for all tobacco makers both smoking forms and smokeless to maintain pictorial warnings in the states format and also to place the health warning in at least 40 per cent of the principal display area of the tobacco package.

At recent consultations several government and non-governmental organisations called for a complete ban on advertising, promotion and sponsorship of tobacco products in the country. The consultation was by HRIDAY (Health Related Information Dissemination Amongst Youth) and Voluntary Health Association of India (VHAI) in collaboration with the Health and Family Welfare ministry and the WHO Country Office for India. It was felt that despite the regulations, tobacco advertising, promotion and sponsorship is very rampant and youth-centric. The urgent need to strengthen the existing provisions of COTPA and a multi-sect oral and inter-governmental synergy was stressed to effectively implement a complete ban.

Advertising of tobacco products is restricted under the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003, (COTPA).

It is also established that a majority of smokers as many as 70 per cent  desire to quit, but only 30 per cent of them actually try each year, and only 3 to 5 percent actually succeed in quitting, states WHO. 

The theme of this year World No Tobacco Day is: Ban tobacco advertising, promotion and sponsorship.

A comprehensive ban of all tobacco advertising, promotion and sponsorship is required under the WHO Framework Convention for Tobacco Control (WHO FCTC) for all Parties to this treaty within five years of the entry into force of the Convention. Evidence shows that comprehensive advertising bans lead to reductions in the numbers of people starting and continuing smoking. Statistics show that banning tobacco advertising and sponsorship is one of the most cost-effective ways to reduce tobacco demand and thus control its usage.

The objective of 2013 campaign is also drive local, national and international efforts to counteract tobacco industry efforts to undermine tobacco control, specifically industry efforts to stall or stop comprehensive bans on tobacco advertising, promotion and sponsorship.

Of the six million people who die of tobacco related diseases every year globally more than 600 000 are non-smokers dying from breathing second-hand smoke.

The ultimate goal is to contribute to protect present and future generations not only from these devastating health consequences, but also against the social, environmental and economic consequences of tobacco use and exposure to tobacco smoke.

So until all forms of consumption of tobacco cease through regulations and laws the goal of tobacco free India cannot be fulfilled. There is therefore a need for all stake holders in public health to coordinate their effort for everyone to emphatically say No To Tobacco. 

Free essays for Competitive Exams-Schemes Providing Subsidised Food grains

Schemes Providing Subsidised Food grains


      Government of India makes allocation of foodgrains under Targeted Public Distribution System (TPDS) for Below Poverty Line (BPL) families and Antyodaya Anna Yojana (AAY) families @ 35 kg per family per month. Beneficiaries for the scheme are identified by the States on the basis of 1993-94 poverty estimates of Planning Commission and March 2000 population estimates of Registrar General of India.  


The Department of Food & PD also makes allocation of food grains at BPL prices for the following welfare schemes implemented by various Ministries/Departments of the Government of India as well as State Governments/UTs:


The Mid Day Meal Scheme is implemented by the Ministry of Human Resource Development. The Scheme covers students of Primary & Upper Primary Classes in the Government Schools/Schools aided by Government and the Schools run by local bodies. Food grains are supplied free of cost @ 100 gram per child per school day where cooked/processed hot meal is being served or 3 kgs per student per month where foodgrains are distributed in raw form. 


This Scheme is implemented by the Ministry of Women & Child Development. The food grains allotted under this Scheme are utilized by the States/UTs under Integrated Child Development Services (ICDS) for providing nutritious/energy food to children in the age group of 0-6 years and expectant/lactating women.


      The Ministry of Women and Child Development administers the scheme at the central level and State/UT Governments implement the scheme.  The SABLA Scheme has been launched on 19.11.2010 by merging two schemes namely Nutrition Programme and Adolescent Girls (NPAG) and Kishori Shakti Yojana (KSY) in to a single scheme and proposed to be implemented in 200 selected districts across the country.  The Scheme aims at empowering adolescent girls of 11-18 years by improvement of their nutritional and health status and upgrading various skills like home skills, life skills and vocational skills.  It also aims at equipping the girls on family welfare, health hygiene etc. and information and guidance on existing public services along with aiming to mainstream out of school girls into formal or non-formal education. The requirement of food grains under the scheme for nutrition is @ 100 grams of grains per beneficiary per day for 300 days in a year. 

This Scheme is implemented by the Department of Food and Public Distribution through the State Governments/UTs. To meet the requirement of Hostels/Welfare Institutions, viz., N.G.Os/Charitable Institutions, an additional allocation of foodgrains up to 5% of the BPL allocation of each State/UT is made to States/UTs at BPL rates under this Scheme.  


      This Scheme is implemented by the Department of Food and Public Distribution through the State Governments/UTs. Under this Scheme, all residents of the hostels having 2/3rd students belonging to SC/ST/OBC are given 15 kg. foodgrains per resident per month .


      This Scheme is implemented by Ministry of Rural Development. Indigent senior citizens of 65 years of age or above who, though eligible for old age pension under the National Old Age Pension Scheme (NOAPS) but are not getting the same, are covered under this Scheme and 10 kgs. of foodgrains per person per month are supplied free of cost.   


This Scheme is implemented by Department of Food and Public Distribution through the State Government of Orissa. The Scheme is being implemented in eight KBK Districts of Orissa covering 2 lakh beneficiaries andfoodgrains (rice) at BPL rates are being allocated to State Government of Orissa.  Cooked food containing, inter alia, rice-200 gms, dal (pulse)-40 gms and vegetables-30 gms is provided daily in the diet of each EFP beneficiary by the State Government.  


Village Grain Bank Scheme was earlier implemented by the Ministry of Tribal Affairs in 11 States. However, since 24.11.2004, the scheme is being implemented by the Department Food & Public Distribution. 

The main objective of the scheme presently being implemented is to provide safeguard against starvation during the period of natural calamity or during lean season when the marginalized food insecure households do not have sufficient resources to purchase rations.  Such people in need of food grains will be able to borrow food grains from the Village Grain Bank. The grain banks are to be set up in food scarce areas like the drought prone areas, the hot and cold desert areas, tribal areas and the inaccessible hilly areas which remain cut off because of natural calamities like floods, etc. These villages are to be notified by the concerned State Government/Union Territory. The scheme envisages inclusion of all willing BPL/AAY families in the villages to be identified by   the State Government in food deficit areas. The quantity to be lent and the period of repayment is to be decided by the Group themselves.  Village Panchayat/Gram Sabha, Self Help Group for NGOs etc. identified by the State Governments are eligible for running the Grain Banks.

Free Essays for Competitive Exams-Yuva Saathi - Young Volunteer Guide Training Programme

Yuva Saathi - Young Volunteer Guide Training Programme

National Museum Institute has started a new training program- Yuva Saathi- youth volunteer guides. The programme is aimed at training the Volunteers in taking guided visits of the school groups and family groups at the National Museum. She said that she was happy to see that youngsters are enthusiastic and willing to be associated with National Museum
The Yuva Saathi training programme aims to train young people in the field of heritage, museum education, public communication and creative learning in order design and conduct tours for young visitors to the museum. It also aims to enhance the sense of belonging towards our collective heritage and leadership towards preserving and sharing it.

The trainees will be trained to fulfill the specific needs of Young Visitors to National Museum. In museum, young visitors learn when their interests are motivated and engaged. The programme proposes to equip the Guides to make National Museum a place of learning and fun for the young visitors and their accompanying adults.

The programme includes –historical perspectives, introduction to museum, guided gallery talks and tours for all the galleries of National Museum, communication and creativity skills, design and facilitation skills, heritage trails and self development –initiative etc. The medium of transaction would be bilingual, Hindi English.

National Museum Institute (NMI) is a Deemed University and offers MA and PhD Programmes in Museology, Conservation and Art History. The Department ofMuseology has been involved in Research Projects in the field of Museum Education for many years. The department has worked with various audience categories like school children, children from minority faith schools, specially challenged children, under-privileged children, teacher-trainees’, teachers etc.  exploring museums’ potential for them. Considering NMI’s long experience in the field of museum education, the task of designing and developing the Yuva Saathi training programme was entrusted to the department of Museology, National Museum Institute. This is the first time a comprehensive training program for youth volunteers is being undertaken by the institution.

National Museum, as is well known, is the first premier museum of National importance to be set up in the post-independence India. Today its collection consists of about 2, 00,000 works of art, both of Indian and foreign origin, representing almost all disciplines of art, archaeology, sculpture, paintings, epigraphy, numismatics, decorative arts, jewellery, textiles and anthropology.

Free essays for Competitive Exams-NSIC Rapid Incubation Model – Turning Job Seekers into Job Creators

NSIC Rapid Incubation Model – Turning Job Seekers into Job Creators

Unemployment is a colossal problem and in most developing countries. Self-employment generation, by way of creating new small enterprises, is perhaps the fastest process by which one gets employed and gives employment to other unemployed youth.

Enterprise development is one of the thrust areas for economic development of any country, which can be achieved by way of providing hand-holding support to budding entrepreneurs. NSIC has developed a unique model of rapid technology incubation for setting up new small enterprises, creating self-employment opportunities by imparting training in entrepreneurship building and skill development to unemployed persons who intend to set up their small enterprises or seek employment opportunities. The Incubators envisage transformation of unemployed youth into budding entrepreneurs in just three months’ time. The Incubators intend to provide training in several trades in manufacturing of product and service sectors. Incubators provide an opportunity to first generation entrepreneurs to acquire skill on basic technical trades and gain exposure in all areas of business operation such as business skill development, identification of appropriate technology, hands-on experience on working projects, project / product selection, guidance to spot opportunities, commercial aspects of business, etc. Supply of machinery and credit support are arranged to the trained, budding entrepreneurs for setting up Micro and Small Enterprises through tie-up with financial institutions. Once established, the entrepreneur generates employment opportunities for others. 

This model has been found to be appropriate for developing countries. The model has also been applied for patenting by NSIC. The patent application has already been published by the Patent Office Journal on 8th July, 2011.


·         Self-employment generation among aspiring start-up entrepreneurs.
·         Accelerate creation of new enterprises.
·         Extend integrated support by way of providing hands-on training on working projects.
·         To boost the development of small enterprises in manufacturing sector.


The selected candidates are put through a comprehensive training programme of 12 weeks’ duration (part-time) covering the following:

·           Classroom training on entrepreneurship skill development
·           Hands on practical training on live manufacturing projects
·           Guidance for project report preparation
·           Guidance on preparation of fund proposal to banks
·           Support services to start business

 Programme Deliverables

I) Counseling (One Week)

Counseling is a process of selection of candidates. The success of any enterprise establishment programme largely depends on the selection of right participants having enough potential to start their enterprise after the trainingprogramme. For selection of prospective entrepreneurs, the information can be disseminated to people of identified town/village by way of any local media i.e. newspapers, pamphlets, awareness meetings and / or through professional and academic institutions. Therefore, the broad guidelines for selection of the potential candidates are:-

The candidates should have adequate space to establish the enterprise, ability to provide margin money and possess basic entrepreneurial traits.

Minimum qualification: The candidate should have attended at least 10 years of schooling.

Preference to be extended to those with higher qualification particularly having some knowledge / technical background in industry/business.

II) Entrepreneurship Orientation (Two Weeks)
During this period, the trainees are imparted knowledge on business process, entrepreneurship quality and motivation, business law, accounting procedure etc. The course content for the training covers the following:
Definition of business and kinds of businesses.
Local conditions for setting up small enterprises such as availability of raw material, skills available, demand for various products and services, availability of infrastructure and logistics including transportation etc. 
Entrepreneurial quality and motivation
Product selection and opportunity guidance
Business laws
General banking
Basic book keeping and accounting
Working capital management
Product costing and pricing
Role of banks
Role of government institutions and other promotional agencies
Procedures for the setting up of enterprise
Approvals needed for setting up new enterprises
 Guidance for the preparation of project/profile  report

III) Hands on Training on machines in ICSEE (Four Weeks)

After completion of entrepreneurship orientation programme, each trainee would select one project of his/her interest which is intended to be established by the respective trainee. Hands-on training is provided on the selected machine / project as detailed below:

Hands-on working on selected project to gain detailed knowledge about operating the machines.
Acquiring technical knowledge about the machines installed.
  Raw material availability and its consumption plan.
 Understanding the production process.
 Understanding the quality control process of the finished products.
Understanding packaging of the finished product.
Understanding basic maintenance needs of the machines.
Understanding preventive measures to be taken.

 IV) Market Survey (1 Week)

 Visit to markets for raw materials and finish products.
 Study the availability and quality of raw materials.
Hold discussions with bulk buyers and other purchasers.
Understanding competition in the market.
 Understanding price and demand of the product in the market.
Study the established market for finished product.
 Make a market survey report.

V)   Project Report Preparation (1 Week)

During this week, the trainees prepare the project report, which should contain the following:

Market survey
Details of the project
Details of the plant, machineries and other fixed assets
Fixed capital
 Working capital (Raw material cost, salary and wages, utility and overheads)
Breakeven point
Cost of the project
Sources of finance
Profit and loss statement
Cash flow statement
Projected balance sheet for the next five years
Re-payment of loan statement

VI) Formal approvals and registrations (1 Week)

To establish the project, identification of various approvals needed such as pollution control, special clearances in case of food products, quality control or any other approvals etc. wherever applicable.
To discuss with the authorities concerned.
Form-filling and submission of application.
 Follow up for approvals.
Submission of application and follow-up with the bank for credit availability.

VII) Monitoring and follow-up

The graduated trainees are monitored continuously. A candidate-wise report is maintained and updated on monthly basis.

Uniqueness of the Rapid Incubation Model

The Rapid Incubation Programme provides on-the-job training to prospective entrepreneurs. The programme has been developed to include classroom and practical hands-on training on working projects installed in the incubator. NSIC also facilitates in machinery / credit sourcing for trainees in the post-training phase. As a part of the post-training support, assistance is also provided to candidates in procurement of equipment and machinery for selected projects and installation and commissioning of projects. Online placement assistance is also provided to candidates seeking job opportunities.
The unique features of the Rapid Incubation Programme are:

Contribution to local economic development
Reducing unemployment
Low investment per employment generated as compared to investment in employment generation in large industries.
Assist in import substitution in least developed countries
Open to all irrespective of age and gender.
Provides actual business environment for trainees without incurring any capital expenditure.
Transformation of unemployed person into a budding entrepreneur in just three months.
Training and support services under one roof.
Creation of a large number of enterprises in a short span of time.
Cost effective method for establishment of new enterprises.

Quotable Quote-Message of the Day

Keep a tight security on your mind, so that only positive thoughts are allowed to enter & only words of wisdom are allowed to exit 

Wednesday, 29 May 2013

Free Essays for Competitive Exams-Nursing Sick Units Back to Health

Nursing Sick Units Back to Health

Once blue chip Central Public Sector Enterprises (CPSEs) like BSNL, Air India, Hindustan Cables Ltd andFertiliser Corporation of India today stand testimony as to how not changing with the changing times and technology could change their fate and turn them into sick units.
However, there has been always a silver lining in this regard as the government has been relentlessly making efforts to revive maximum number of sick public sector units (PSUs) to take the country's growth engine forward. This was possible with the help of revival packages provided by the government to these units.
            With this aim, the Government set up the Board for Reconstruction of Public Sector Enterprises (BRPSE) in December 2004 to advise the government, inter-alia, on the measures to restructure/revive, both industrial and non-industrial CPSEs.
            Since then cases of around 67 sick CPSEs have been referred to BRPSE up to October 2012, out of which the Board has made recommendations in respect of 62 cases, while returning five cases to the concerned ministries for further examination.
No wonder, there has been significant improvement in the overall condition of these enterprises since 2004. In comparison to 90 sick CPSEs in March 2005, there were 66 sick PSUs in March 2012. As per the BRPSE recommendations, of these cases, 45 were accepted for revival by the Government.
Most of the remaining cases are awaiting nod for revival while in case of  45 cases accepted for revival, 14 have already turned around including Bharat Pumps and Compressors, Cement Corporation of India, HEC, Andrew Yule and MECON and making profits while others have been infused with revival packages.
The companies for which revival packages have been approved include Hindustan Shipyard, HMT and Scooters India.
            As the CPSEs operate under dynamic market conditions, it is quite natural to see ups and downs in their performance.
            As far as the reasons for losses and sickness in CPSEs are concerned it varies from enterprise-to-enterprise. While in some cases, the cause is historical. In case of textile companies which were taken over from private sector on socio-economic considerations could not be modernised quickly.
Likewise other enterprises in the engineering and refractories sector too failed to modernise. Still others like some consumer goods companies and the new ones, turned sick over the years on account of inadequate job orders, high man-power cost, lack of finance, technological obsolescence, high input costs and competition from cheap imports.
In addition, other problems common to most sick and loss-making PSUs have been poor debt-equity structure, weak marketing strategies and slow decision-making process.          
             As one such policy initiative, the Sick Industrial Companies (Special Provision) Act, 1985 (SICA) brought the CPSEs under its purview in 1991 (made effective from 1992). Under the provisions of the SICA,CPSEs with at least five years of registration whose accumulated losses are equal to or have exceeded their net worth may be referred to the BIFR. During the last twenty years -- between 1992 and 2011, 63 CPSEs have been referred to BIFR.    
The government has made several attempts to overcome "sickness" in these CPSEs through various policy initiatives.
The strategies for revival/restructuring of sick CPSEs include financial restructuring involving investment by the government in the form of equity participation, loans, waiver of debt etc and business restructuring which includes change of management, hiving off viable units from CPSEs for formation of separate company and closure of unviable units, besides formation of joint ventures.
The other strategies include manpower rationalisation by shedding excess manpower and introduction of voluntary retirement schemes.
            The contribution of each and every company is significant as CPSEs are considered as the backbone of the economy and are equal partners in the nation building.
As on March 31, 2012, there were 260 CPSEs in the country. These companies contributed Rs 1.6 lakhcrore to the central exchequer by way of taxes, duties, interest on loans and dividend, amounting to 21.4 per cent of government's revenue receipts.

Free Essays for Competitive Exams-Competition Commission of India - 4 Years of Enforcement of Competition Law

Competition Commission of India - 4 Years of Enforcement of Competition Law

Free and fair competition is one of the pillars of an efficient market economy.  Competition has become a driving force in the global economy. May 19, 2009 changed the paradigm of doing business in India. That is the day the enforcement of the Competition Act was started by the Competition Commission of India. During its brief existence of about 4 years, CCI has come a long way. Though relatively short in terms of life span, the Competition Law is hugely significant as a building block for economic development and rising levels of economic welfare.

Evolution of Competition Law in India

              India was among the first developing countries to have a competition law in the form of the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. The MRTP Act was designed to check concentration of economic power, prohibit restrictive or unfair trade practices and control of monopolies. Then came 1991, which has proved to be a watershed in the history of India’s economic development. The new India required new rules.Hence, the need for a new competition law. Accordingly, the Competition Act was passed in 2002 and amended in 2007. The Competition Commission of India (CCI) was established on March 1, 2009 as an autonomous body comprising of a Chairperson and six members. An appellate body Competition Appellate Tribunal was also set up in May 2009 with final appeal lying to the Supreme Court of India. Subsequently, the MRTP Act was repealed, MRTP Commission established under that act was abolished and its pending cases were transferred to the CCI. Sections 5 & 6 relating to Merger & Acquisition were notified in June, 2011.

Developments Over the Past 4 Years 
Since the notification of provisions of sections 3 and 4 relating to anti-competitive agreements and abuse of dominance in May 2009, CCI has received more than 350 matters and passed final orders in more than 260 cases. The forms of enforcement include a wide range of anti-competitive issues like cartels, bid rigging, abuse of dominance, after markets etc.

            Under Sections 5 & 6 of the Competition Act, more than 120 notices have been received and disposal rate has been more than 95%.  All the notices were cleared within the self-imposed limit of 30 days wherein the Law allows a period of upto 210 days for clearing the notices. 
Major Sectors Covered under Various Orders of CCI 
       The sectors that have been covered are as diverse as infrastructure, finance, entertainment, IT, telecom, civil aviation, energy, insurance, travel, automobile manufacturing, real estate and pharmaceuticals etc.

Cement is a crucial input in construction industry vital for economic development of the country. CCI imposed a penalty of approx. Rs.6700 crore on eleven cement manufacturers and their trade association for behaving like a cartel.

The cement manufacturers and their trade association have subsequently preferred an appeal before the COMPAT.   Even while the hearing continues in the case, COMPAT has directed the cement companies to deposit 10% of the penalty imposed by CCI.  This is a significant development in the process of enforcement of Competition law in the country. 

Earlier, in another case with major ramifications for consumers the Commission had imposed a penalty of approx. Rs. 630 crore on DLF, a major real estate player. It was found that it had abused its dominant position by imposing arbitrary and unreasonable conditions on the apartment owners. Subsequently, CCI issued an order modifying the terms and conditions of the agreement signed by the companies with its investors to ensure that the terms and conditions between the buyer and seller were fair and transparent. This order may well become the harbinger of change in the real estate sector for the benefit of consumers.

Suo Moto Actions
The CCI not only hears and investigates cases based on the information received by it, but it also takes suo moto action wherever it finds that a prima facie violation of Competition Act has been committed. 

       In 2011, the Commission had taken suo-moto cognizance of the reported manipulation of the bids by manufacturers of LPG cylinders for supplying cylinders to the Indian Oil Corporation. A penalty of more than Rs.187crore  was imposed on parties to the bid rigging.

Many more such notices have been sent by CCI in the Petroleum sector, Agricuture sector etc. taking cognisance suo-moto. 

Role of Trade Associations 
An area of focus which suggested itself based on matters which were enforced is the role of trade associations. CCI’s experience in handling cases of anti-competitive agreements suggest that the trade associations can also, either due to ignorance or deliberately, get involved in acts of commission or omission which can fall foul of various economic legislations. 

Competition law treats the activities of trade associations much like any other form of cooperation between competitors. For competition law purposes, decisions or recommendations of trade associations are treated as agreements between its members and law may be breached even when they are not binding on the members. 

The very first case investigated by CCI related to actions of a trade association. CCI imposed a nominal penalty of Rs. 1 lakh each on 27 film producers on charges of colluding through an association to exploit multiplex owners. 

There have been number of cases involving the associations in the Pharmaceutical sector/Film production etc where CCI has passed orders against the associations and asked them to “cease and desist” from activities that may be anti-competitive in nature. 

Public Procurement and Competition Law 

Another issue which has been of paramount concern to CCI has been the dimension of public procurement. Public procurement is a contentious issue vis-à-vis application of competition law due to a number of factors. Competition Act does not make a distinction between a public and private enterprise. As such, public enterprises, which are generally the big procurers, are subject to competition assessment.

       In recent months, the Commission has decided a number of matters, including cartelization in government contracts. Penalties have been imposed on firms to discourage the anti-competitive practices and abuse of dominance. Wherever, after inquiry, it has been found that competition could be enhanced if certain policies of government were modified, the Commission has suggested changes in such policies.

Orders have been passed in more than 21 cases wherein SOEs and Government Departments were a party. Some of these include Oil Companies, Railways etc. 

CCI has been taking up the issue with the public procurement agencies and has had number of interactions with the nodal officers of more than 50 Ministries/ Departments to ensure that the practices followed in the public procurement are in compliance with the letter and spirit of the Competition Act.

Four years is a very small period to judge the effectiveness of a new legislation.  However, as the developments of the past four years suggest, Competition Commission of India is set to change the rules of the game and play the role of a watchdog to check anti-competitive practices in the market. The Competition Act and the culture of competition are slowly but definitely finding their feet in India.