A Report on Legal Framework in India for CSR

Submitted by,

Pandimurugan RM (09AB26)

Jos korian E ((09AB16)

Ifthikar ahmed S (09AB14)

Prabhu B(09AB28)
 Corporate Social Responsibility

INTRODUCTION

The concept of social responsibility among businessmen, particularly in India,

is not new and can be easily seen in the form of magnificent temples, high
mosques, large dharmshalas and great educational institutions. Indian
literature is full of incidents when businessmen have gone out of the way to
help extract kings and societies out of crises. Many Indian businesses are
known for staying one step ahead of the government, as far as the welfare of
employees and societies is concerned. Corporate Social Responsibility (CSR)
can be defined as the ‘ethical behaviour of a company/business towards
society’. It means engaging directly with local communities, identifying their
basic needs, and integrating their needs with business goals and strategic
intent. The government perceives CSR as the business contribution to the
nation’s sustainable development goals. Essentially, it is about how business
takes into account the economic, social and environmental impact of the way
in which it operates. Simply stated, CSR is a concept which suggests that
commercial corporations must fulfil their duty of providing care to the
society.

Why is there so much talk about CSR today?

As both businesses as well as governments have existed on earth since

ancient times, why are terms like ‘CSR’ and ‘Sustainable Development’ being
talked of now only for the last decade? The answer lies in the growing sizes of
businesses and the corresponding shrinking roles of governments. As the
people are now more educated and informed that their predecessors, their
expectations from corporate houses too have increased manifold. The advent
of scientific inventions and the dominance of democratic forms of
governance in most parts of the world have led to the exponential growth of
the middle class all over the world.

There are many countries in the world whose annual sales are more than the
Gross National Products (GNPs) of many countries. According to newspaper
analysis, the total annual revenue receipt of the retail chain, Wal-Mart is
greater than the economies of all but 30 of the world’s nations. In India too,
there is growing number of companies (in the private sector) whose revenue
receipts are more than Rs. 10,000 crore led by Reliance Industries Limtied
(RIL), which has crossed the figure of Rs. 90,000 crore. The level of these
receipts is more than the annual receipts of many smaller states. These
companies control a large part of earth’s resources, the price of which is paid
in the form of sacrifices by different sections of society. On the other hand,
governments are redefining their roles and are limiting themselves to
governance and facilitation. This development is sometimes dubbed as
symbolising a shift from state-centred policy to market-centred policy.

Even in a wholly globalised and integrated world with a borderless economy,

states have a role to play. People in democratic societies expect the
government to fulfil their basic needs. In the new, envisaged scenario, the
private sector would increase its role in the economy, while the government
would take care of service such as basic education, public health and basic
medical care. As success brings with it responsibility, the growing size and
clout of corporate houses has led to growing need for regulations. The reason
why CSR has assumed so much importance is ‘because corporate houses
intervene in so many areas of social life, they must be responsible towards
society and environment’.

Business Benefits of Corporate Social Responsibility:

Although economic considerations constitute the main driving factor in any
business activity, there is growing resistance against the conventional view
that business is chiefly a means for only improving the economic condition of
an individual or a group of individuals. The concept of CSR is qualitatively
different from the traditional concept of philanthropy. Traditional corporate
philanthropy dates back to the nineteenth century and emerged from factors
such as concern for the welfare of the immediate members of the corporate
body including employees and their families, a desire among entrepreneurs
to be a part of society and to establish a strategic relationship with the
government and, more importantly, local administration, and above all, the
aspiration to create several Trusts and similar bodies to hold and cross-hold
the owners’ holding in the enterprise, which incidentally would do some
charitable works as a face for the public.

The concept has changed a lot since then and with various developments
such as liberalisation of the economy during the last decade, lowering of tax
rates and the intention of the government to make the thing straight by
undoing cross subsidies, introducing systems of automatic approvals and
reducing regulatory intervention, corporate houses do not see any incentive
in working with self-created multiple agencies. The question which thus
arises is as to how CSR expenses can benefit corporate houses in ways other
than by increasing visibility.

The KPMG International Survey of Corporate Social Responsibility Reporting,

20005 (www.KPMG.com), has identified the following drivers of corporate
responsibility in the order of their importance:
 (a) Economic considerations
(b) Ethical considerations
(c) Innovation and learning
(d) Employee motivation
(e) Risk management or risk consideration
(f) Access of capital or increased shareholder value
(g) Reputation or brand
(h) Improvement in market position (market share)
(i) Strengthened supplier relationship
(j) Cost saving
(k) Improved relationships with governmental authorities
(l) Other factors

LABOUR LAW

Why study labour law?

Labour law is not one legislation, but it is a cluster of legislations enacted and
amended by the government from time to time, covering the gamut of issues
relating to labour and its employment. Satisfaction and job security to the
labour and to check exploitation and oppression by the employer is the
essence of all these enactments.

In what way labour law is connected with CSR?

• A dedicated workforce is vital for the success of any organization.

• Employees are part of the society & treating them fairly will make the
firm socially responsible.

• Not just for the employers, but also the employees should make sure
that their actions are within the prescribed laws of the government.
This prevents the unwanted disputes between both the parties.

Note: A general misunderstanding is that labour laws are applicable for large
sized organizations.

There are various labour laws which were framed by the Indian government
which would enable the organization to function with minimum levels of
social responsibility. In this section we will discuss about some of the most
important laws regulated by the government.

The objectives of forming such rules are to

  To increase the employment opportunities to the eligible people,
thereby reducing unemployment levels.
 Solve industrial and labour disputes in the organization by forming a
trade unions and monitoring committees.
 Improve the working conditions of the labourers.
 To provide safety and security for the employees during and after
their working period through provident funds and pension schemes.
 Provide maternity benefits to women employees., etc

Who governs these laws?

• The central government has framed laws ensuring uniformity & parity
throughout the country.
• But the ultimate authority lies in the hands of the state government
to either accept a central law as it is or with suitable amendments.
• The state government can also enact their own law which suits them
best.
• However the regulation of labour in railways, mines, oilfields, defence
industries and industries of national importance like Navy, Military
and Air forces are directly under the union government

THE APPRENTICES ACT, 1961

Objectives: The apprentices Act of 1961 envisages to regulate and control the
training of apprentices and to supplement the availability of trained technical
personnel for the industry. The Act was amended in 1973 to provide for
practical training to the graduate engineers and diploma holders, thereby
improving their employment potential. However the appointment of
apprentices for the purpose of paying lower wages would be unfair labour
practice.

Scope and coverage: To the whole of India, applies to areas and industries
specified by the central govt.

Administrative authority: Apprenticeship councils, Council of technical

education etc., under the central & state governments.

Misconception: An apprentice is a trainee and not a worker of the employer.

An apprentice will not become a “workman” merely by operating machine
during his training. Generally provision of any labour law do not apply to
apprentices, except if the apprentices are working in a factory or mine, the
provisions relating to health, safety and welfare, prescribe under the
factories Act or mines Act shall apply to them alike any other worker.

CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986

Objectives: To prohibit the engagement of children

in certain occupations & processes that are unsafe
and harmful workers who are of tender age, and
aims at regulating the conditions of work of
children in certain other employments.
Scope and coverage: To the whole of India, applies to all establishments
where industrial processes are carried on.
Administrative authority: Child labour technical advisory committee (set up
by the central govt)
Prohibited occupations: Part A & Part B
Part A includes occupations like 1) Cinder picking, clearing of an ash pit or
building operation in railway premises, 2) Work in a catering establishment at
a railway station, involving the movement of vendor or any other employee
of the establishment, from ome platform to another or in and out of a
moving train, 3) Transports of passengers, goods or mails, work related to
construction of a railway station, 4) A port authorized within any port, 5)
Abattoirs and slaughter houses.
Part B includes 1) Bidi making, 2) Carpet weaving, 3) Cement manufacturing
including bagging thereof, 4) Cloth printing, dyeing and weaving, 5)
Manufacturing of matches, explosives and fire-works, 6) Mica-cutting and
splitting, 7) Shellac manufacture, 8) Soap manufacture, 9) Manufacture of
slate pencils 10) Wood cleaning, 11) Building and construction industry, 12)
Tanning, etc.
It’s interesting to see that the government indirectly posted almost all the
small industries where employability of children is predominant.

Who is a child labour?

Under the Act, “Child”; means person who has not completed the fourteenth
year of age. Any such person engaged for wages, whether in cash or kind, is a
child labour.

THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS

ACT, 1952
Objectives: A compulsory contributory fund for the future of the employee
after his/her retirement

Scope & coverage: To the whole of India except J & K, Applicable to

establishments employing 20+ people (excluding Contract labour,
Apprentices & Trainees)

Administrative authority: Central board of trustees set up by the central govt

in consultation with state govt

Exemption: The Act, however, does not apply to

A co-operative society employing however, does not apply to
a) A co-operative society employing less than 50 persons and working
without power.
b) A newly set-up establishment for an initial period of 3 years from the
date on which such establishment is, or has been set up, and
c) Any central/state government having scheme of provident fund or
pension

THE EMPLOYEES’ STATE INSURANCE ACT, 1948

Objectives : The main objective is to provide workers medical relief, sickness
cash benefits, maternity benefits to women workers, pension to the
dependents of deceased workers and compensation for fatal and other
employment injuries including occupational diseases, in an integrated form
through a contributory fund. Where a workman is covered under ESI scheme,
no compensation could be claimed from his employer under the workmen’s
compensation Act in respect of employment injury sustained by him.

Scope & coverage: To the whole of India except J & K, Applicable to

establishments employing 20+ people (excluding Contract labour,
Apprentices & Trainees)

Administrative authority: Central board of trustees set up by the central govt

in consultation with state govt .

THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF

VACANCIES) ACT, 1959

Objectives: The Act aims to provide for the compulsory notification of

vacancies to employment exchanges.

Scope & coverage: To the whole of India, applies to public sector wherein
25+ personnel are employed.

Administrative authority: Employment exchanges controlled by central

government.
Offences and penalties: The penalties leviable in respect of the various
offences under the Act are as follows:

Offence Penalty
1. Failure to notify vacancies to Fine up to Rs. 500 for the first
the prescribed employment offence and up to Rs. 1000 for every
exchange. subsequent offence.
2. Refusal to furnish the required Fine up to Rs. 250 for the first
information or return, or offence and up to Rs. 500 for every
furnishing false information or subsequent offence
return, or refusal to answer or
giving a false answer to any
question necessary for
obtaining any required
information, or impeding the
right access to relevant
records or documents.

THE EQUAL REMUNERATION ACT, 1976

Objectives: The Act provides for payment of equal remuneration to men and
women workers, for same work or work of a similar nature and for the
prevention of discrimination, on grounds of sex, against women in the matter
of employment. The applicability of the law does state govt not depends
upon the financial viability of the employer to pay equal remuneration as
provided by it.
Scope & coverage: To the whole of India and it applies to almost all kind of
establishments
Administrative authority: The central government has powers to make rules
and prescribe forms, etc, for the purposes of this Act. It may also give
directions to a state government as to carrying in to execution of the Act in
the state.

Exemptions: The provisions of the Act shall not apply under the following
circumstances:
a) When special treatment is given to employment of women under any
law or in connection with birth of a child, or in the terms and
conditions relating to retirement, marriage or death of women.
b) When the central or state government declares that in a particular
establishment the difference in regard to the remuneration of men
and women workers is based on a factor other than sex.

FACTORIES ACT, 1948

Objectives : The main objective of the factories Act are a) to regulate working
conditions in factories, and b) to ensure that basic minimum requirements for
the safety, health and welfare of the factory, workers are provided. Besides,
the Act envisages to regulate the working hours, leave, holidays, overtime,
employment of children, women and young persons, etc.

Scope & coverage: To the whole of India, and it applies to all factories
including govt factories.

Administrative authority: The state governments are empowered to make

rules for administering the provisions of the Act in their respective states.
THE INDUSTRIAL DISPUTES ACT, 1947

Definition of Industry:
‘Industry’ means any business, trade, undertaking, manufacture of calling of
employers and includes any calling, service, employment, handicraft or
industrial occupation or avocation of workmen.

Objectives: This Act was enacted to secure industrial peace and harmony by
providing machinery and procedure for the investigation and ssettlement of
industrial disputes by negotiations instead of by trial of strength through
strikes and lock-outs. This legislation is calculated to ensure social justice to
both employers and employees and thereby promote industrial progress.

Scope & coverage: : To the whole of India, and it applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of
goods and services, irrespective of the number of workmen employed
therein, i.e. even in case of a single employee the Act shall apply.

Administrative authority: The central government is in charge of solving

disputes arising in industries under its control and the state govt has to
concern the rest.

THE PAYMENT OF WAGES ACT, 1936

Objectives: The Payment of Wages Act, 1936 was enacted with the object of
a) regulating payment of wages, imposition of wages and deduction of wages,
and b) eliminating all malpractices by laying down wage periods and time and
mode of payment of wages. The Act, therefore, ensures payment of wages in
a particular form at regular intervals without unauthorized deductions.

Scope & coverage: Extends to the whole of India and covers industries
notified by the Central or State governments.

Employees Entitled: The Act is applicable to the employees receiving wages

below Rs. 1600 p.m. Persons employed in a railway establishment, either
directly or through a contractor, are also covered under this Act.

Administrative authority: The Act is administered by the state governments

in their respective states. However, in case of railways, mines, oil-fields and
central air transport service, it is administered by the central government.
The central and state governments are empowered to appoint the inspectors
and payment of wages authority, and make rules for enforcement of the
provisions of the Act.

STATUTORY WARNINGS

• It’s a function which entails any organization

dealing with products which that are
 potentially harmful to the consumers to place statutory warnings on
the products as a word of caution
• Governed, controlled and monitored by the health ministry

MISLEADING ADVERTISEMENT

• If an advert deceives or likely to deceive its audience and affect their

economic decision making
• A misleading advertisement doesn’t necessarily be in written form. It
can be in verbal either directly or in telephone.
• Comparative advertisement – If an advertisement identifies itself with
its competitors

RIGHT TO INFORMATION ACT, 2005

• An Act to provide for setting out the practical

regime of right to information for citizens to
secure access to information under the
control of public authorities, in order to
promote transparency and accountability in
the working of every public authority
• public authority means any authority or body or institution of self-
government established or constituted
a) by or under the Constitution;
b) by any other law made by Parliament
c) by any other law made by State Legislature;
 d) by notification issued or order made by the appropriate
Government,
and includes
(i) body owned, controlled or substantially financed;
(ii) non-Government organization substantially financed,
directly or indirectly by funds provided by the appropriate
Government;

Obligations of Public Authorities: Every public authority shall maintain all its
records duly catalogued and indexed in a manner and the form which
facilitates the right to information under this Act and ensure that all records
that are appropriate to be computerized are, within a reasonable time and
subject to availability of resources, computerized and connected through a
network all over the country on different systems so that access to such
records is facilitated;

Pro-active Disclosure: Every public authority shall publish within one hundred
and

twenty days from the enactment of this Act-

i. Particulars of organization/ functions and duties

ii. Powers and duties of officers / employees

iii. Procedure followed for decision making

iv. Norms set for discharge of functions

v. Rules/regulations/instructions/manuals/records held

vi. Categories of documents held by it

vii. Arrangements for citizen consultations

viii. Details of boards, Councils, Committees, etc

 ix. Directory of officers and employees

x. Monthly remuneration received by officers and employees

xi. Budget, Plan and expenditure details

xii. Manner of execution of subsidy programs

xiii. Concession details

xiv. Details of material in electronic form held by the office

xv. Facilities available to citizens for accessing information

xvi. Details of PIO s

xvii. Such other information as prescribed.

xviii. And update these publications every year

These publications are updated every year.

Information on Policies and Decision

Publish all relevant facts while formulating important policies or

announcing decisions which affect the public

• Provide reasons for its administrative / quasi judicial decisions to

affected persons

Dissemination of Information

• Provide as much information suo motu (on its own motion) to the
public through various means of communications, including internet
 • Such that public sparingly resort to the use of the Right to Information
Act to obtain information.

• Published material may be made available to the public at a

reasonable price conforming to rules, if any, made under the Act.

• Disseminate Information through notice boards, news papers, public

announcements, media broadcasts, the internet or any other means.

Transfer of Misdirected Requests

The Public Authority has to transfer requests for information

(i) which is held by other public authorities or

(ii) the subject matter of which is more closely connected with another
public authority
(iii) Transfer requests to the other public authority within five days of
receipt of request
(iv) Inform the applicant immediately about such transfer
Note:
• An applicant making request for information shall not be required to
give any reason for requesting the information or any other personal
details except those that may be necessary for contacting him
• Information including commercial confidence, trade secrets or
intellectual property will not be provided

Environment Laws

Conservation, preservation and development of environment and

ecology involve several regulatory, measures for prevention of air and water
pollution, diversion of forest lands etc. A constitutional and legal framework
has been evolved in the country through the relevant provisions in the
constitution of India.

Constitutional Provisions

The Indian constitution provides federal form of government. Part Xl

of the constitution governs t he division of legislative and administrative
authority between the centre and the states. Article 246, divides the subject
areas for legislation into 3 lists, union list, state list and concurrent list. The
union list contains subjects over which the union has exclusive powers of
legislation( e.g. atomic energy and mineral resources, treaties, agreements and
conventions with foreign countries, shipping and navigation on inland
waterways, marine shipping and navigation, defence, foreign affairs , railways,
national highways , banking, insurance, Interstate trade and commerce etc.).
The state list comprises the subjects over which the state has exclusive
jurisdiction ( e.g. public health and sanitation, hospitals and dispensaries,
water supplies, irrigation and canals, agriculture, fisheries etc.). The
concurrent list enumerates the subject on which both the union and the state
legislative have concurrent jurisdiction, but in case of conflict between the
state and the centre the latter would follows ( e.g. economic and social
planning, population control and family planning, factories , boilers etc.)

The Wild Life Protection Act, 1982:

In 1972 India adopted a comprehensive national law under the article

252 to prevent the fast decline of wild animals and birds. The wildlife act
provides the fast decline of wild animals and birds. The act provides two
pronged conservation strategy:

 Specified endangered species are protected regardless of

location.
  All species are protected in designated areas, called sanctuaries
and national parks.

An amendment to the act in 1982, introduced provisions permitting the

capture and transportation of wild animals for scientific management of
animal populations. Comprehensive amendments to the present act in 1991
envisaged establishment of a central zoo authority to regulate the management
and functioning of zoos. The new provisions also recognized the needs of
tribals and forest dwellers and introduced changes to advance their welfare.

The Water Act, 1974:

The purpose of this act is to ensure that the rivers, streams and other
sources of drinking water and water for support for fish life or for use in
irrigation are not allowed to be polluted by the discharge of domestic and
industrial effluents. The act provides the establishment of a central board for
the prevention and control of water pollution and also state boards to deal
effectively with the problem of water pollution in the country and provides
deterrent penalties for contravention of the provisions of the act. The act also
adopts setting up of laboratories to enable the boards to assess the extent of
pollution lay down standards and establish guilt or default.

The act was amended in 1978 to remove certain practical difficulties

faces in its implementation. It was further amended in 1988 renaming the
boards as central/state pollution control boards so that they may deal with both
water and air pollution control. This act left many grey areas that were
difficult to administer. The act does not cover ground water contamination.
Municipalities which are primarily responsible for treating residential wastes
remain free from direct liability.” This act does not give the victim right to go
to the courts to punish the offending units and the charges can be bought to the
courts only by the boards.
The case of Coca Cola factory at Plachimada, Palakkad is an apt example in
which the company is charged guilty by the local people for contaminating the
ground water. The farmers around the plant stopped cultivation due to severe
shortage of water. This was another thunderbolt on the farmers that took away
their daily little earnings. (For more details refer to the article ‘COCA-COLA
QUIT PLACHIMADA; QUIT INDIA’)

The Forest Act, 1980:

The purpose of this act is to put check on indiscriminate exploitation

and diversion of forest land for non-forest purposes. After this act it is
mandatory for the state governments to submit formal proposals for the
declaration of de-reserved, and for declaration of the reserved forests for
approval. The act was amended on 1988 to incorporate stricter penal
provisions against violators. The important amendments are as follows:

 No forest land or any portion thereof may be cleared of trees

which have grown naturally in that land, for the purpose of
using it for afforestation without prior approval of the central
government.

 No state government or other authority may issue orders

directing that any forest land or portion thereof may be
assigned by way of lease or otherwise to any private person or
to any authority, corporation, agency or any other organisation
not owned, managed or controlled by government without prior
approval of the Central Government.

The Air Act, 1981:

The preamble of the Air act states that the act represents an
implementation of the decisions made at the UN conference on the Human
Environment held at Stockholm in 1972. The act defines air pollution as “any
solid, liquid or gaseous substance present in the atmosphere in such
concentration as may be or tend to be injurious to human beings or other living
animals or plants, property or environment. Under this act, all industries
operating within designated air pollution control areas must obtain consent
(permit) from the state boards. The state is required to prescribe emission
standards for industry and automobiles after consulting the central board and
noting ambient air quality standards. The 1987 amendment strengthened the
enforcement machinery and introduced stiffer penalties.

The functions of the SPCB also includes inspection of any control

equipment, industrial plant or manufacturing process and to give directions to
persons as it may consider necessary to take appropriate measures for
prevention, control or abatement of air pollution. The SPCB’s few of the
necessary powers in consultation with the state governments are:

a.) Impart instruction for ensuring standards for emission from

automobiles
b.) May approach to court for preventing persons from causing air
pollution.
c.) The boards can direct the closure or prohibition of any industry
operation or the storage of regulation of supply of electricity
water or any other service.

The Environment Act, 1986:

The mission statement of this act is drawn from the decisions taken at
the Stockholm conference in June 1972. According to this act environment
includes, “water, air, and land and the interrelationship, which exists among
these components”. The act envisages establishment and recognition of
government and appointment of government analysis for the purpose of
analysis of samples of air, water, soil or other substances sent for analysis to
any environmental laboratory established or recognized under the act. The
Union Government under this act has empowered the Central pollution
Control Board to enter ant place and inspect any plant, equipment, machinery,
manufacturing or other processes, materials or substances.

The Public Liability Insurance Act, 1991:

This law has been enacted to provide for public liability insurance for
the purpose of giving immediate relief to the persons affected by accident
occurring while handling any hazardous substance and matters connected
therewith or incidental there to hazardous substances would mean any material
or preparation which is defined as hazardous material under the environment
(protection) Act, 1986, and exceeding such quantity as may be specified, by
notification, by the central government. This act stipulates that every owner
shall takeout before he starts wants handling any hazardous material, one or
more policy and renew it from time to time before the expiry of the validity.
Rule II illustrates that owner shall contribute to Environmental Relief Fund a
sum equal to premium.

Pollution Reduction Abatement And public Policy, 1992:

The policy for pollution reduction and abatement was framed by the
MoEF in 1992. This act has its roots from the UN conference on
Environmental and Development held at Rio de Janeiro which came out with
the following objectives of environment policy:

 To reverse the tendency to treat environment as a free good.

 To shift towards the integration of social and environmental

costs into economic costs.
  To involve market principles in the framing of economic
instruments and policies to pursue sustainable development.

The National Environment Tribunal Act, 1995:

The main purpose of this act is to provide for strict liability for
damages arising out of any accident occurring while handling any hazardous
substances and for the setting up of National Environment Tribunal for
efficient and disposal of cases arising from such accident, with a view to
giving relief and damages to persons, property and the environment.

Hazardous Waste Management:

The issue of safe disposal of toxic and harmful liquids, solids, and
sludge has been addressed by Regulations for disposal of hazardous wastes.
The environment Protection Act, 1986 is the enabling legislation under the
authority if which the Ministry of Environment and Forest (‘MoEF’) has
prescribed three sets of rules regarding hazardous wastes/chemicals, these are:

1. The manufacture, storage and import of Hazardous Chemicals

Rules of November 1989, motivated by the desire to prevent
industrial accidents, these rules distinguish chemicals based on the
level of potential hazard.

2. Hazardous Waste Management and Handling Rules of

December 1989 aimed at solid and semi solid hazardous wastes.

3. The rules on Hazardous Micro – organisms / Genetically

Engineered Organisms 1989 are directed at the biotechnology and
associated environmental threat.

Salient Features of the Amendment to Rules of 1989:

1. Broader definition of Hazardous Waste.

2. Responsibilities of Occupier and Operator of a Waste Management
Facility: The occupier was held responsible for handling of the wastes and
in cases where the occupier was different from the operator of waste
management facility, the responsibility of occupier was limited to
providing all the necessary and factual information to the operator.

3. Grant of Authorisation: SPCB are expected to process authorisation

application for disposal of hazardous waste within 90 days.

4. Identification of disposal sites: It places the responsibility for

identification of disposal sites on the shoulders of the occupier, industrial
associations, as well as the State Governments whose delays/inability was
a major reason for lack of disposal infrastructure all over the country.

5. Designing and setting-up of disposal facility: Not only the set-up and
operation details be incorporated in the design exercise, but the closure and
post closure activity too should be detailed at the design stage.

6. Import, Export and Trans-boundary transport of hazardous wastes:

Rule 11 of the rule 1989 has been amended to categorically stage that”
import of hazardous waste from any country to India and export of
hazardous waste from India to any country for dumping or disposal shall
not be permitted”.

7. Illegal Traffic of hazardous wastes: Rule 15 has been newly introduced

to address the movement of Hazardous Waste from or to India. In case of
illegal movement the provision is made to ship the waste back of the
exporter or exporting country within 30 days or the waste is to be disposed
of within 30 days from the date of loading.

IMPORTANCE OF TAXATION
"It was only for the good of his subjects that he collected taxes from them,
just as the Sun draws moisture from the Earth to give it back a thousand
fold" –
                                    --Kalidas in Raghuvansh eulogizing KING DALIP.

To tax (from the Latin taxo; "I estimate") is to impose a financial charge or
other levy upon a taxpayer (an individual or legal entity) by a state or the
functional equivalent of a state such that failure to pay is punishable by
law.

Money provided by taxation have been used by states and their functional
equivalents throughout history to carry out many functions. Some of these
include expenditures on war, the enforcement of law and public order,
protection of property, economic infrastructure (roads, legal tender,
enforcement of contracts, etc.), public works, social engineering, and the
operation of government itself. Governments also use taxes to fund
welfare and public services. These services can include education systems,
health care systems, pensions for the elderly, unemployment benefits, and
public transportation. Energy, water and waste management systems are
also common public utilities. Colonial and modernizing states have also
used cash taxes to draw or force reluctant subsistence producers into cash
economies.

Governments use different kinds of taxes and vary the tax rates.

This is done to distribute the tax burden among individuals or classes of

the population involved in taxable activities, such as business, or to
redistribute resources between individuals or classes in the population.
Historically, the nobility were supported by taxes on the poor; modern
social security systems are intended to support the poor, the disabled, or
the retired by taxes on those who are still working. In addition, taxes are
applied to fund foreign aid and military ventures, to influence the
macroeconomic performance of the economy (the government's strategy
for doing this is called its fiscal policy), or to modify patterns of
consumption or employment within an economy, by making some classes
of transaction more or less attractive.

A nation's tax system is often a reflection of its communal values or/and

the values of those in power. To create a system of taxation, a nation must
make choices regarding the distribution of the tax burden—who will pay
taxes and how much they will pay—and how the taxes collected will be
spent. In democratic nations where the public elects those in charge of
establishing the tax system, these choices reflect the type of community
that the public and/or government wishes to create. In countries where the
public does not have a significant amount of influence over the system of
taxation, that system may be more of a reflection on the values of those in
power.

The resource collected from the public through taxation is always greater
than the amount which can be used by the government. The difference is
called compliance cost, and includes for example the labour cost and other
expenses incurred in complying with tax laws and rules. The collection of
a tax in order to spend it on a specified purpose, for example collecting a
tax on alcohol to pay directly for alcoholism rehabilitation centres, is
called hypothecation. This practice is often disliked by finance ministers,
since it reduces their freedom of action. Some economic theorists consider
the concept to be intellectually dishonest since (in reality) money is
fungible. Furthermore, it often happens that taxes or excises initially levied
to fund some specific government programs are then later diverted to the
government general fund. In some cases, such taxes are collected in
fundamentally inefficient ways, for example highway tolls
Taxation has four main purposes or effects: Revenue, Redistribution,
Repricing, and Representation.

The main purpose is revenue: taxes raise money to spend on armies, roads,
schools and hospitals, and on more indirect government functions like
market regulation or legal systems.

A second is redistribution. Normally, this means transferring wealth from

the richer sections of society to poorer sections.

A third purpose of taxation is repricing. Taxes are levied to address

externalities: tobacco is taxed, for example, to discourage smoking, and a
carbon tax discourages use of carbon-based fuels.

A fourth, consequential effect of taxation in its historical setting has been

representation. rulers tax citizens, and citizens demand accountability from
their rulers as the other part of this bargain. Studies have shown that direct
taxation (such as income taxes) generates the greatest degree of
accountability and better governance, while indirect taxation tends to have
smaller effects.

An important feature of tax systems is the percentage of the tax burden as

it relates to income or consumption. The terms progressive, regressive, and
proportional are used to describe the way the rate progresses from low to
high, from high to low, or proportionally. The terms describe a distribution
effect, which can be applied to any type of tax system (income or
consumption) that meets the definition. A progressive tax is a tax imposed
so that the effective tax rate increases as the amount to which the rate is
applied increases. The opposite of a progressive tax is a regressive tax,
where the effective tax rate decreases as the amount to which the rate is
applied increases. In between is a proportional tax, where the effective tax
rate is fixed, while the amount to which the rate is applied increases. The
terms can also be used to apply meaning to the taxation of select
consumption, such as a tax on luxury goods and the exemption of basic
necessities may be described as having progressive effects as it increases a
tax burden on high end consumption and decreases a tax burden on low
end consumption.

IMPORTANCE OF EXPORT AND IMPORT:

International trade allows countries to exchange good and services with the
use of money as a medium of exchange. Several advantages can be
identified with reference to international trade. However international
trade does have its limitations as well.

• Greater variety of goods available for consumption – international trade

brings in different varieties of a particular product from different
destinations. This gives consumers a wider array of choices which will not
only improve their quality of life but as a whole it will help the country
grow, which is a perfect market.

• Efficient allocation and better utilization of resources since countries

tend to produce goods in which they have a comparative advantage. When
countries produce through comparative advantage, wasteful duplication of
resources is prevented.It helps savethe environment from harmful gases
being leaked into the atmosphere and also provides countries with a better
marketingpower.

• Promotes efficiency in production as countries will try to adopt better

methods of production to keep costs down in order to remain competitive.
Countries that can produce a product at the lowest possible cost will be
able to gain a larger share in the market. This will help standards of the
product to increase and consumers will have a good quality product to
consume.

• More employment could be generated as the market for the countries’

goods widens through trade. International trade helps generate more
employment through the establishment of newer industries to cater to the
demands of various countries. This will help countries bring down their
unemployment rates.

ROLE OF CORPORATE

Corporate play an important in economic growth through this. Hence the

corporate should invest in projects that promotes export. And also they
should look for projects which can reduce imports.

ROLE OF GOVERNMENT

Government encourage these by providing various plans and schemes.This

includes subsidies, tax exemptions, etc for exports.Financial assistance and
tax holidays for R&D projects which will reduce imports.

BALANCING DEVELOPMENT

When any economy develops, the development may not be same

throughout the economy. Some states are highly developed, some are
underdeveloped, some are partially developed. There comes the need to
balance or distribution of development in the economy. The people living
in this area cannot get equal opportunity what the people in developed area
gets.
ROLE OF CORPORATES:

Hence corporates have the ability to narrow down this gap by investing in
the backward areas. Provide employment for the people and developing
the basic infrastructure will improve the life standards of this people.

Government encourage this activities by providing various benefitting

schemes. Tax exemptions for investments and donations made in rural
areas. Tax holiday in the profits upto 10 years or 20% of their income for
industries located in these areas.