Morning Brief: Cabinet Nod To 6 Month Maternity Leave; ISIS Routed In Libya; Vietnam Dares China

CABINET DECISIONS

#1 The Union cabinet has approved a proposal that seeks to double the maternity leave to women employees from three to six months. Commissioning mother (one who gets a baby via surrogate mothers) and adopting mother would also get 12 weeks of maternity benefits.

But is this move really woman friendly? R. Jagannathan writes that ‘while it is always good to give mothers more time with their newly-borns, the chances are that this change will work against their long-term fight for equality in the workplace and against giving their partners an equal share of responsibility around the home and in bringing up children.’

The government may table the Maternity Benefit (Amendment) Bill, 2016 in Parliament today.

#2 In a move to improve the ease of doing business, the union cabinet has approved the liberalisation norms for the non-banking finance companies (NBFCs). It also did away with minimum capital requirements.

So far, only investments in 18 specified NBFC activities were permitted under the automatic route. Now, all activities can come under the automatic route provided they are regulated by any of the financial sector regulators.

LEGISLATIVE CAPSULE

#1 The Lok Sabha passed the Factories (Amendment) Bill, 2016, yesterday which includes a provision to increase the cap on overtime in factories, doubling from current 50 hours to 100 hours in a quarter and to 125 hours under special circumstances through a special notification.

This is still below the International Labour Organisation prescribed upper limit of 144 hours. But even this was too much for the opposition. It walked out of the House before the bill was passed saying the amendment was pro-corporate.

#2 The Lok Sabha also passed the Taxation Laws (Amendment) Bill, 2016. It seeks to exempt land banks of erstwhile public sector undertakings from a levy of capital gains tax when transferred to the government.

This will also pave the way for the textile sector getting tax sops. Earlier, 240 days of employment in the sector was necessary to earn tax sops but now this has been reduced to 150 days keeping in mind the seasonal nature of the sector.

VIETNAM DARES

Vietnam has discreetly shipped its new mobile rocket launchers capable of striking China’s runways and military installations from the mainland into position on five bases in the Spratly islands. Of 14 of these islands, six are occupied by Vietnam. China occupies none but claims indisputable sovereignty over the islands and nearby waters.

Vietnam wanted to fortify its bases as it expected tensions to rise in the wake of the landmark international court ruling against China. The court found no legal basis to China’s sweeping historic claims to much of the South China Sea.

XI’s PURGE

Since the day he took office, Chinese President Xi Jinping has been constantly trying to concentrate power in his hands. China watchers believe that he is well on his way to becoming the country’s all-powerful dictator.

In his latest move, he has announced a reorganisation of the Communist Youth League, essentially purging the organisation. The news assumes importance because in China there are only two ways one can get ahead in the Communist Party and rise to a position of importance: First, by being born into a family of influential party officials and second through one’s own merit via the Youth league.

Xi’s purging of the league has now closed one path to power via which self-made, entrepreneurial, merit-oriented officials could rise to the top.

ISIS LOSING

US-backed pro-Libyan government militias claim that they have seized the Islamic State’s last stronghold in the country, the city of Surt. According to Libyan news agencies, while the militia fighters were still hunting remnants of the Islamic State forces hiding in residentialneighbourhoods in Surt, they have taken the heavily fortified Ouagadougou Center, which the IS had used as its headquarters.

The dreaded terrorist organisation has suffered retreats in Syria and Iraq. It has lost vast chunks of its territory in the past one year. If the latest claims from Libya are true, it would be a major setback for ISIS which had grand plans to expand in the North Africa region.

MUST READ OP-EDS

Nitish Kumar’s Police Collector Raj: The state’s draconian law for enforcing the liquor ban merits censure.

Irom Sharmila’s Future In Politics: A sharp divide between the majority Meiteis and the tribals in the hills surrounding the valley is threatening to tear the state apart. And Sharmila, a Meitei herself, has never offered any imaginative solutions.

Floodplains And Flash Floods: Indian cities need much improveddrainage to deal with the challenge faced by urban centres on the floodplains.

SWARAJYA SPECIAL

Nemesis Is Heading Towards PSU Banks At Express Speed: Coming digital disruption in the banking sector will render many PSU banking behemoths uncompetitive. If they​ continue to resist this change and take things slowly, they’ll soon have to shut shop with no choice in the matter.

We hope you enjoyed reading our morning brief. Have a great day ahead!

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