Month: February 2020

The government formulated this act in 1974 to prevent the pollution of water by industrial, agricultural and household wastewater that can contaminate our water sources. Wastewaters with high levels of pollutants that enter wetlands, rivers, lakes, wells as well as the sea are serious health hazards.

Controlling the point sources by monitoring the levels of different pollutants is one way to prevent pollution, by punishing the polluter. Individuals can also do several things to reduce water pollution such as using biodegradable chemicals for household use, reducing the use of pesticides in gardens, and identifying polluting sources at work places and in industrial units where oil are or other petroleum products and heavy metals are used.

Excessive organic matter, sediments and infecting organism from hospital wastes can also pollute our water. Citizen needs to develop a watchdog force to inform authorities to appropriate actions against different types of water pollution. However, preventing pollution is better than trying to cure the problems it has created, or punishing offenders.

The main objectives of the Water Act are to provide for prevention, control and abatement of water pollution and the maintenance or restoration of the wholesomeness of water. It is designed to assess pollution levels and punish polluters. The Central Government and State Government have set up PCBs to monitor water pollution.

The Water Act, 1974 with certain amendments in 1978 is an extensive legislation with more than sixty sections for the prevention and control of water pollution. Among other things, the Act provides for constitution of central and State Boards for preventing water pollution, power to take water samples and their analysis, discharge of sewage or trade effluents, appeals, revision, minimum and maximum penalties, publication of names of offenders, offences by companies and Government departments, cognizance of offences, water laboratories, analysis etc.

Prevention and control of water pollution is achieved through a permit or ‘consent administration’ procedure. Discharge of effluents is permitted by obtaining the consent of the State Water Board, subject to any condition they specify. Any person who fails to comply with a directive of the State cannot, however, entertain in suit under this Act unless the suit is brought by, or with the sanction of the State Board.

Water Pollution Cess Act, 1977 According to this Act, anyone consuming water has to pay certain amount of cess depending on:

1. Whether the industry is using water for industrial cooling, spraying in mine pits or boilers feed,
2. For domestic purposes.
3. In processing, whereby water gets polluted and pollutants are easily biodegradable.
4. In processing whereby water gets polluted and the pollutants are not easily bio-degradable and are toxic.

Those industries that had installed a suitable treatment plant for the treatment of industrial effluents can get a rebate of 70 per cent on the cess payable.

• The Environment (Protection) Act, 1986 authorizes the central government to protect and improve environmental quality, control and reduce pollution from all sources, and prohibit or restrict the setting and /or operation of any industrial facility on environmental grounds. The Environment (Protection) Act was enacted in 1986 with the objective of providing for the protection and improvement of the environment. It empowers the Central Government to establish authorities charged with the mandate of preventing environmental pollution in all its forms and to tackle specific environmental problems that are peculiar to different parts of the country. The Act was last amended in 1991.
• The Environment (Protection) Rules lay down procedures for setting standards of emission or discharge of environmental pollutants.
• The objective of Hazardous Waste (Management and Handling) Rules, 1989 is to control the generation, collection, treatment, import, storage, and handling of hazardous waste.
• The Manufacture, Storage, and Import of Hazardous Rules define the terms used in this context, and sets up an authority to inspect, once a year, the industrial activity connected with hazardous chemicals and isolated storage facilities.
• The Manufacture, Use, Import, Export, and Storage of hazardous Micro-organisms/ Genetically Engineered Organisms or Cells Rules,1989 were introduced with a view to protect the environment, nature, and health, in connection with the application of gene technology and micro-organisms.

The Biological Diversity Act 2002 and Biological Diversity Rules

The Biological Diversity Act 2002 and Biological Diversity Rules provide for the conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of the benefits arising out of the use of biological resources and knowledge associated with it.

Its key provisions aimed at achieving the above are:

• Prohibition on transfer of Indian genetic material outside the country, without specific approval of the Indian Government;
• Prohibition on anyone claiming an Intellectual Property Right (IPR), such as a patent, over biodiversity or related knowledge, without permission of the Indian Government;
• Regulation of collection and use of biodiversity by Indian nationals, while exempting local communities from such restrictions;
• Measures for sharing of benefits from the use of biodiversity, including transfer of technology, monetary returns, joint Research & Development, joint IPR ownership, etc.;
• Measures to conserve and sustain-ably use biological resources, including habitat and species protection, Environmental Impact Assessments (EIAs) of projects, integration of biodiversity into the plans, programmes, and policies of various departments/sectors;
• Provisions for local communities to have a say in the use of their resources and knowledge, and to charge fees for this; Protection of indigenous or traditional knowledge, through appropriate laws or other measures such as registration of such knowledge;
• Regulation of the use of genetically modified organisms; Setting up of National, State, and Local Biodiversity Funds, to be used to support conservation and benefit-sharing;
• Setting up of Biodiversity Management Committees (BMC) at local village level, State Biodiversity Boards (SBB) at state level, and a National Biodiversity Authority (NBA).

The Public Liability Insurance Act and Rules 1991 and Amendment, 1992

The Public Liability Insurance Act and Rules 1991 and Amendment, 1992 were drawn up to provide for public liability insurance for the purpose of providing immediate relief to the persons affected by accident while handling any hazardous substance.

The National Environmental Tribunal Act,1995, Amendment 2010

The Act has been created to award compensation for damages to persons, property, and the environment arising from any activity involving hazardous substances. The three major objectives of the Green Tribunal are

• The effective and speedy disposal of the cases relating to environment protection and conservation of forests and other natural resources. All the previous pending cases will also be heard by the Tribunal.
• It aims at enforcing all the legal rights relating to the environment
• It also accounts for providing compensation and relief to effected people for damage of property.

The salient features of amendment are as follows:

• Amendment provides an equal opportunity to any citizen of India to approach the National Green Tribunal.
• It ensures that the tribunal takes into consideration principles of Sustainable Development, Precautionary principles, Polluter Pays Principles and Inter generational Equity while hearing any appeal and giving judgements.

National Green Tribunal Act, 2010

Under the National Green Tribunal Act 2010 for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto. It is a specialized body equipped with the necessary expertise to handle environmental disputes involving multidisciplinary issues. The Tribunal shall not be bound by the procedure laid down under the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice.

The Tribunal’s dedicated jurisdiction in environmental matters shall provide speedy environmental justice and help reduce the burden of litigation in the higher courts. The Tribunal is mandated to make and endeavour for disposal of applications or appeals finally within 6 months of filing of the same. Initially, the NGT is proposed to be set up at five places of sittings and will follow circuit procedure for making itself more accessible. New Delhi is the Principal Place of Sitting of the Tribunal and Bhopal, Pune, Kolkata and Chennai shall be the other 4 place of sitting of the Tribunal.

The National Environment Appellate Authority Act,1997

The National Environment Appellate Authority Act has been created to hear appeals with respect to restrictions of areas in which classes of industries etc. are carried out or prescribed subject to certain safeguards under the EPA.

The Biomedical waste (Management and Handling) Rules,1998

The Biomedical waste (Management and Handling) Rules,1998 is a legal binding on the health care institutions to streamline the process of proper handling of hospital waste such as segregation, disposal, collection, and treatment.

The Environment (Siting for Industrial Projects) Rules, 1999

The Environment (Siting for Industrial Projects) Rules, 1999 lay down detailed provisions relating to areas to be avoided for siting of industries, precautionary measures to be taken for site selecting as also the aspects of environmental protection which should have been incorporated during the implementation of the industrial development projects.

The Municipal Solid Wastes (Management and Handling) Rules, 2000

The Rules apply to every municipal authority responsible for the collection, segregation, storage, transportation, processing, and disposal of municipal solid wastes.

The Ozone Depleting Substances (Regulation and Control) Rules, 2000

The Ozone Depleting Substances (Regulation and Control) Rules,2000 have been laid down for the regulation of production and consumption of ozone depleting substances.

The Batteries (Management and Handling) Rules, 2001

These rules shall apply to every manufacturer, importer, re-conditioner, assembler, dealer, auctioneer, consumer, and bulk consumer involved in the manufacture, processing, sale, purchase, and use of batteries or components so as to regulate and ensure the environmentally safe disposal of used batteries.

The Noise Pollution (Regulation and control) (Amendment) Rules, 2010

These rules lay down such terms and conditions as are necessary to reduce noise pollution, permit use of loud speakers or public address systems during night hours (between 10:00 p.m. to 12:00 midnight) on or during any cultural or religious festive occasion.

Following are the salient features of the amendment:

• In the heading ‘PUBLIC ADDRESS SYSTEM’ the words ‘AND SOUND PRODUCING SYSTEMS’ shall be inserted.
• A loudspeaker or any sound producing system or a sound amplifier shall not be used at night time except in closed premises for communication within like auditorium, conference rooms, community halls, banquet halls or during public emergency.
• The noise level at the boundary of the public place where loudspeaker or public address system is being used the sound should not exceed 10dB above the ambient noise standards of that area or 75dB whichever is less.
• No horn shall be used in silence zones or residential areas at night except in emergency situations.
• Sound emitting construction equipments shall not be operated during night.

The water act 1974 was amended in 1988 and accordingly CPCB and SPCBs were formed after renaming the previously functioning central/state Boards for the prevention and contort of water. The new boards in the centre and state were also entrusted to look after air pollution besides their work to safeguard water from pollution.

CPCB:

Central Pollution Control Board function at New Delhi. It makes recommendations and advises the central government on pollution matters. It advises the pollution control division of the Ministry of Environment and Forests, New Delhi. The water and Air Acts, and other Acts related to environment from time to time are implemented through CPCB.

SPCB:

There are State Pollution Control Boards at various state capitals of the country to advise respective state governments to control and protect environment. Till 1989 all except the states of Manipur, Mizoram, Nagaland, Arunachal Pradesh and Sikkim have their SPCBs.

All SPCBs look after the interest of the respective states where they function. They implement the directives from CPCB and all Acts which are enacted from time to time. The SPCB has also branches at different towns in the states.

A person of repute in the field of environment or environmental scientists heads the SPCB as chairman. The SPCB has its own team of scientists and laboratories to check quality of air, soil and water of different samples collected from industrial areas.

The SPCB works with the rules framed by the state governments as well as by central government from time to time. The various provisions present in Water Act, Air Act and Environmental Protection Act are carried out by the industries and factories in the state with the supervision of SPCB. When necessary, SPCB sends experts to the concerned areas to monitor the implementation of various guidelines of the Act.

Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers. International trade allows countries to expand markets for both goods and services that otherwise may not have been available to it. It is the reason why an American consumer can pick between a Japanese, German, or American car. As a result of international trade, the market contains greater competition and therefore, more competitive prices, which brings a cheaper product home to the consumer.

Trade broadly refers to transactions ranging in complexity from the exchange of baseball cards between collectors to multinational policies setting protocols for imports and exports between countries. Regardless of the complexity of the transaction, trading is facilitated through three primary types of exchanges.

Trading globally between nations allows consumers and countries to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water. Services are also traded: tourism, banking, consulting, and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country’s current account in the balance of payments.

International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity of foreign direct investment (FDI), which is the amount of money that individuals invest into foreign companies and other assets. In theory, economies can, therefore, grow more efficiently and can more easily become competitive economic participants. For the receiving government, FDI is a means by which foreign currency and expertise can enter the country. These raise employment levels, and, theoretically, lead to a growth in the gross domestic product. For the investor, FDI offers company expansion and growth, which means higher revenues.

A trade deficit is a situation where a country spends more on aggregate imports from abroad than it earns from its aggregate exports. A trade deficit represents an outflow of domestic currency to foreign markets. This may also be referred to as a negative balance of trade (BOT).

Types of Trade

1. Home Trade (Internal Trade)

Internal trade is also known as Home trade. It is conducted within the political and geographical boundaries of a country. It can be at local level, regional level or national level. Hence trade carried on among traders of Delhi, Mumbai, etc. is called home trade.

Internal trade can be further sub-divided into two groups, viz.,

(i) Wholesale Trade

It involves buying in large quantities from producers or manufacturers and selling in lots to retailers for resale to consumers. The wholesaler is a link between manufacturer and retailer. A wholesaler occupies prominent position since manufacturers as well as retailers both are dependent upon him. Wholesaler act as a intermediary between producers and retailers.

(ii) Retail Trade

It involves buying in smaller lots from the wholesalers and selling in very small quantities to the consumers for personal use. The retailer is the last link in the chain of distribution. He establishes a link between wholesalers and consumers. There are different types of retailers small as well as large. Small scale retailers includes hawkers, pedlars, general shops, etc.

2. Foreign Trade

External trade also called as Foreign trade. It refers to buying and selling between two or more countries. For instance, If Mr. X who is a trader from Mumbai, sells his goods to Mr. Y another trader from New York then this is an example of foreign trade.

External trade can be further sub-divided into three groups, viz.,

(i) Export Trade

When a trader from home country sells his goods to a trader located in another country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in China.

(ii) Import Trade

When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. For e.g. a trader from India purchase goods from a trader located in China.

(iii) Entrepot Trade

When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade. In brief, it can be also called as re-export of processed imported goods. For e.g. an indian trader (from India) purchase some raw material or spare parts from a japanese trader (from Japan), then assembles it i.e. convert into finished goods and then re-export to an american trader (in U.S.A).

Importance of Trade

(i) Growth of the Economy

Trade Provide growth to the economy because when trade started in any country it brings new opportunities to people. Which also brings money in public. So, trade is the most important pilar for growth of any economy.

(ii) Provide Global Presence

When a country started trading in the domestic and International market. Global reach started automatically because the people of other countries started buying the product. So, trade provides global presence to the economy.

(iii) Helps in Civilizations

When trade started in any country it helps in improving personal growth of the people because trade run in a systematic way. So, when trade starts it does not only give to the people it also teach them administrations.

(iv) Provide High Quality Products

When trade starts it brings high compositions as well. when the compositions it remove monopoly of the products. In last when trade started it provide high quality products to the consumers.

(v) Trade improves financial performance

Once trade brings it started providing tax to the goverments. This allows them to augment the returns they achieve on their investments into research and development.

ADVANTAGES OF TRADE

(i) Maximum utilization of natural resources

Trade helps each country to utilize their natural resources in effective ways to produces high-quality products at the cheapest rate. Wastage of resources automatically reduced because once trade starts it brings high skilled employees.

(ii) Trade encourages market competition

When more brands come in the market competitions increase that gives more options and quality to the consumers at a low price and remove monopoly. Example; In India there are a lot mobiles brands has came that is providing more options and quality to the custumers.

(iii) Trade develops sympathies

Trade develops sympathies and creates common interests between trading country. It also exchange the ideas traditions, customs. This promotes international understanding and peace among the people. if war starts it can be remove by people love and understanding.

 (iv) Advantages of large-scale production

When the trade started it does not only use home country but also export to other countries. This leads to larger production of the product and advantages of large production can be a benefit to all the countries.

(v) Increase in efficiency

Trade helps to country to increase their productivity because trade brings high productivity machine and best technology to the host country. This increases the efficiency and benefits to the consumers all over the world.

DISADVANTAGES OF TRADE

(i) Economic Dependence on Developed Economies

The developing economies have to depends on the developed economies because developed economies provide funds, technologies machines etc. to developing nations for trades, most of the undeveloped economy in Asia and Africa are directly depend on European countries.

(ii) Political Dependence

Most of the time trade encourages slavery. Trade affects the political decisions of the country because they become a big pillar of country of their financial support. So, it starts occupying the country’s decisions. Basically it happens in backward economies.

(iii) Creates Monopoly

When big companies come in developing nations they invest money and manpower in huge quantity. So, it affects local business and creates a monopoly in the industry. Example When Amazon came to India it has effect a lot of local business.

(iv) Fear of loosing jobs

Loosing jobs is also a big fear for local skilled and educated employees.because when a big company leaves the country it fired employees in huge quantity. which creates crisis in economy.

Trade means exchange of goods. What difference, then, does it make to the theory of trade whether these goods are made in the same country or in different countries?

Why is a separate theory of international trade needed? Well, domestic and foreign trade are really one and the same.

They both imply exchange of goods between persons. They both aim at achieving increased production through division of labour.

There are, however, a number of things which make a difference between foreign trade and domestic trade and necessitate a separate theory of interna­tional trade.

They are as under:

(i) Immobility of Factors of Production

Labour and capital do not move freely from one country to another as they do within the same country. “Man”, declared Adam Smith, “is, of all forms of luggage, the most difficult to transport”. Much more so when a foreign frontier has to be crossed. Hence differences in the cost of production cannot be removed by moving men and money, the result is the movement of goods.

On the contrary, between regions within the same political boundaries, people distribute themselves more or less according to opportunities. Real wages and standard of living tend to seek a common level, though they are not wholly uniform. As between nations, however, these differences continue to persist for wages and check population movements. Capital also does not move freely from- one country to another. Capital is notoriously shy.

(ii) Different Currencies

Each country has a different currency. India for instance, has the rupee, the U.S.A. the dollar, Germany the mark, Italy the lira, Spain the peso, Japan the yen, and so on. Hence, buying and selling between nations give rise to complications absent in internal trade.

(iii) Restrictions on Trade

Trade between different countries is not free. Very often there are restrictions imposed by custom duties, exchange restric­tions, fixed quotas or other tariff barriers. For example, our own country has imposed heavy duties on import of motor cars, wines and liquors and other luxury goods.

(iv) Ignorance

Knowledge of other countries cannot be as exact and full as of one’s own country. Differences in culture, language and religion stand in the way of free communication between different countries. On the other hand, within the borders of a country, labour and capital freely move about. These factors, too, make internal trade different from international trade.

(v) Transport and Insurance Costs

Then costs of transport and insurance also check- free international trade. The greater the distance between the two countries, the greater are these costs. Wars increase them still more.

Thus, comparative immobility of labour and capital, restric­tions on trade, transport and other costs, ignorance, and differences in language, customs, laws and currency systems make international trade different from domestic trade and necessitate a separate theory of international trade.

India’s internal trade is many times larger than its foreign trade. This is because of the vastness of the country, its varied climate and diverse natural resources. Unfortunately, adequate and reliable statistics are not available to make an exact estimate of the volume and composition of internal trade. Statistics of bank clearances of goods and traffic carried by railways serve only as a rough estimate of the extent of internal trade.

The figures of bank clearances are not a reliable index of either the volume or the extent of internal trade. Similarly, the railway statistics are not dependable. The amount of goods carried by railway largely depends upon the prevailing conditions of trade and on the degree of competition from road transport services.

Regarding the extent of internal trade before independence, the Sub-Committee of the National Planning Committee (NPC) made the following observations- “It would be safe to assume that our internal trade is not less than Rs. 7000 crores in 1940. This figure may be contrasted with the size of our external trade which is about Rs. 500 crores.”

Since independence, internal trade has increased appreciably due to developmental planning in the country. In the course of five year plans, a balanced expansion of internal trade has taken place as a result of planned development of transport, communication and banking.

Some indication of the magnitude of internal trade in the country is given by the goods traffic and earnings from goods carried on the Indian railways. Over the years, the revenue-earning goods traffic on Indian railways has increased from 732 lakh tonnes in 1950-51 to 9691 lakh tonnes in 2010-11. The earnings from goods carried have increased from Rs. 139crorein 1950-51 to Rs. 67761 crore in 2010-11.

Similarly, the increase in the length of National Highways (NHs) and the number of goods vehicles also indicate a boost in the internal trade. The length of NHs has increased from 20 thousand km to 82 thousand km in 2010-11. The number of goods vehicles increased from 82 thousand to 7074 thousand in the same period during 1950-51 to 2010-11.

The internal trade of India can be classified under five broad heads-

(a) Rail-borne trade

(b) River-borne trade

(c) Coastal trade

(d) Trade borne on other craft

(e) Trade by air. Information on rail-and-river-borne trade is collected on the basis of the invoices of railway and streamer companies.

For this purpose, India is divided into a number of trade blocks, roughly representing the states of the Indian Union. The chief port towns of Bombay, Calcutta, Cochin, and Madras are constituted as separate blocks. The number of trade blocks since 1977 is 38.

Characteristics of India’s Internal Trade

1. Internal trade is carried on within the boundaries of one country.
2. In this form of trade goods are carried on from one place to another place through railways and roadways.
3. In this form of trade payment is made or received in local currency.
4. In internal trade wide choice of goods are available.
5. In this type of trade payments can be made in cash, cheque and draft.
6. In this form of trade generally license need not be obtained, whereas it is a must in foreign trade.
7. In this type of trade, local rules and regulations have to be followed.

Problems in India’s Internal Trade