India’s Digital Public Infrastructure (DPI)

Public infrastructure has been a cornerstone of human progress. The monopolisation of public infrastructure, which plagued previous generations, has manifested itself in the centralised nature of today’s digital infrastructure. Digital Public Infrastructure (DPI) can fulfil this need, though it faces several challenges.

What is the issue?

There is a disturbing trend of the weaponization of data and technology or Digital Colonisation (Hicks, 2019) resulting in a loss of agency, sovereignty and privacy.

Therefore, proactively deliberating on how to build good DPI is key to avoiding such challenges.

What Digital Public Infrastructure (DPI) is and what it does?

Three foundational sets DPIs mediate the flow of people, money and information.

First, the flow of people through a digital ID System.

Second, the flow of money through a real-time fast payment system.

Third, the flow of personal information through a consent-based data sharing system to actualise the benefits of DPIs and to empower the citizen with a real ability to control data.

These three sets become the foundation for developing an effective DPI ecosystem.

DPI in India

India, first country to develop all three foundational DPIs: India through India Stack became the first country to develop all three foundational DPIs digital identity (Aadhar), real-time fast payment (UPI) and a platform to safely share personal data without compromising privacy (Account Aggregator built on the Data Empowerment Protection Architecture or DEPA)

Techno-legal regulatory frameworks in India: Techno-legal regulatory frameworks are used to achieve policy objectives through public-technology design.

For example: India’s DEPA offers technological tools for people to invoke the rights made available to them under applicable privacy laws. Framed differently, this techno-legal governance regime embeds data protection principles into a public-technology stack.

DPI most feasible model: DPI has emerged as the most feasible model due to its low cost, interoperability and scalable design, and because of its safeguards against monopolies and digital colonisation.

Status and proceeds of Disinvestment

In the Union Budget for 2023-24, the government has set a disinvestment target of ₹51,000 crore, down nearly 21% from the budget estimate for the current year and just ₹1,000 crore more than the revised estimate.

Lowest Disinvestment target in years

It is also the lowest target in seven years.

The Centre has not met the disinvestment target for 2022-23 so far.

It has realised ₹31,106 crore to date, of which, ₹20,516 crore or close to a third of the budgeted estimate came from the IPO of 3.5% of its shares in the Life Insurance Corporation (LIC).

What is Disinvestment?

Disinvestment or divestment, in this context, is when the government sells its assets or a subsidiary, such as a Central or State public sector enterprise.

There are the three main approaches to disinvestment

Minority disinvestment: The government retains a majority in the company, typically greater than 51%, thus ensuring management control.

Majority disinvestment: The government hands over control to the acquiring entity but retains some stake.

Complete privatisation: 100% control of the company is passed on to the buyer.

Objectives of disinvestment

The following main objectives of disinvestment were outlined:

To reduce the financial burden on the Government.

To improve public finances.

To introduce, competition and market discipline.

To fund growth.

To encourage wider share of ownership.

To depoliticize non-essential services.

Institutional mechanism

Ans. DIPAM

The Union Finance Ministry has a separate department for undertaking disinvestment-related procedures called the Department of Investment and Public Asset Management (DIPAM).

Why need disinvestment?

Reduce money crunch: The government may disinvest in order to reduce the fiscal burden or bridge the revenue shortfall for that year.

Deficit financing: It also uses disinvestment proceeds to finance the fiscal deficit, to invest in the economy and development or social sector programmes, and to retire government debt.

Promote private ownership facilitation: Disinvestment also encourages private ownership of assets and trading in the open market.

Do away with loss-making: If successful, it also means that the government does not have to fund the losses of a loss-making unit anymore.

Other importance of disinvestment lies in the utilization of funds for:

Financing large-scale infrastructure development

Investing in the economy to encourage spending

For social programs like health and education

How has disinvestment fared in India?

Ans. Disinvestment in India has had mixed results.

Since the current government came to power in 2014, it has made significant progress in disinvestment, having raised a record ₹1.05 trillion (US$14.6 billion) for the fiscal year of 2017–18.

However, the government has also failed to reach its disinvestment targets in other years, due to various reasons such as market conditions, investor sentiment, and political opposition.

The government has also been criticized for not doing enough to find potential buyers for state-owned companies.

Despite this, recent years have seen several successful disinvestment deals, such as the strategic sale of Air India and the privatization of BPCL.

Issues with CPSEs through years

Inherent flaws in PSU’s: The entire PSU’s mechanism did not turn out as efficient as it ought to be, all thanks to the prevailing hierarchy and bureaucracy.

Lack of autonomy: Lack of autonomy, political interference, nepotism & corruption has further deteriorated the situation.

Revenue losses: Due to the expenditure on items such as interest payments, wages and salaries of PSU employees and subsidies, the Government is left with hardly any surplus for capital expenditure on social and physical infrastructure.

Lack of Competitiveness: In an era of LPG industrial competitiveness has especially assumed an important role, necessitating privatization or disinvestment of PSUs.

Poor performance: Despite the huge injection of funds in the past decades, the functioning of many public sector units (PSUs) has traditionally been characterized by poor management, slow decision-making procedures, lack of accountability, low productivity, unsatisfactory quality of goods, excessive manpower utilization etc.

 Kingdom of Vijayanagara

A British author has published a book telling of the fictionalised story of the Vijayanagara Kingdom. He took accounts of the poet named Pampa Kampana, who witnessed Vijayanagara’s many victories and defeats.

About Vijayanagara Kingdom

The Vijayanagara kingdom has long been a subject of historical and political interest.

From their capital, now known as Hampi, on the banks of the Tungabhadra River, the kings of Vijayanagara at the peak of their power ruled over a territory of more than 360,000 sq. km.

Founded in 1336, the kingdom of Vijayanagara lasted for more than three centuries, a period in which it withstood multiple political stresses, and saw significant advances in art and economy.

It was one of the most powerful kingdoms in the sub-continent.

Its foundation

Over the course of its existence from 1336 to 1646, the kingdom saw various ups and downs.

Founded by Harihara I of the Sangama dynasty, Vijayanagara expanded from a strategic position on the banks of the Tungabhadra River.

By the 15th century, it had become a force to reckon with.

Rise under Krishna Deva Raya I

The kingdom reached its peak under Krishna Deva Raya (reign 1509-1529).

It is a period in which Vijayanagara enjoyed military superiority to its rival kingdoms such as the Bahmani Sultanate, the Golconda Sultanate and the Gajapatis of Odisha.

At its peak, the kingdom stretched from Goa in the Konkan coast to parts of southern Odisha in the east and all the way to the very tip of the subcontinent in the south.

Why the Vijayanagara history is so much celebrated?

Ans. Economic Prosperity

Monetized economy: Coins were minted by the state as well as by merchant guilds using gold, silver, copper and brass, and their value depended on material weight.

Control over key commodities: The Empire’s principal exports were pepper, ginger, cinnamon, cardamom, myrobalan, tamarind timber, anafistula, precious and semi-precious stones, pearls, musk, ambergris, rhubarb, aloe, cotton cloth and porcelain.

Maritime trade: While the economy of the kingdom was largely dependent on agriculture, trade thrived in its many ports on either coast. Traveller Abd al-Razzaq Samarqandi chronicled how the ports of Mangalore, Honavar, Bhatkal, Barkur, Cochin, Cannanore, Machilipatnam, and Dharmadam saw traders from Africa, Arabia, Aden, the Red sea, China and Bengal and also served as ship building centres.

Vijayanagara’s contributions to culture and architecture

(1) Literary development

The Vijayanagar Empire was also known for its flourishing culture and literature.

The court was home to many poets and scholars, who wrote in both Sanskrit and Kannada.

The emperor Krishnadevaraya was himself a noted poet, authoring works such as the Amuktamalyada and the Jambavati Kalyanam.

The Vijayanagar Empire also patronized the arts, which led to a flourishing of music, dance, and painting.

(2) Architectural development

Vijayanagara’s capital Hampi is a UNESCO World Heritage Site today, known for its sophisticated fortifications as well as innumerable temples and other architectural marvels.

From accounts of foreign travellers, by the beginning of the 16th century, Hampi-Vijayanagara was probably the second largest urban settlement on the planet (after Beijing) and among the most prosperous.

The most impressive architectural feat of the Vijayanagar Empire was the iconic Vitthala temple complex in Hampi.

This complex consists of a temple dedicated to the god Vitthala, a large audience hall, and a stone chariot shrine.

The Prasanna Virupaksha temple of Bukka I and the Hazara Rama temple of Krishna Deva Raya are striking examples of Vijayanagara’s characteristic style and intricate artistry.

Causes of its decline

Military defeats: The first major defeat for the empire was the Battle of Talikota in 1565, in which the Vijayanagara Empire was defeated by a coalition of Muslim sultanates. This major defeat drastically weakened the Vijayanagara Empire and led to a period of political instability and civil war.

Economic disruption: This was further worsened by the Deccan Sultanates’ policy of destroying Vijayanagara’s economy and trade networks. This ultimately resulted in the loss of the empire’s political power and reduced its ability to defend itself from further attacks.

Internal conflict: Other contributing factors included internal divisions between the ruling families and the rise of local governors who declared their independence.

Various travellers details of Vijayanagara kingdom

Vasco da Gama: The first encounter with the Vijayanagara Empire by a European traveller was by the Portuguese explorer, Vasco da Gama, who visited the kingdom in 1498, and was the first to recognize its wealth and power

Nicolo Conti: The Italian traveller Nicolo Conti visited the kingdom in 1420 and documented his journey in a book titled “Viaggio in India”. He wrote about the grandeur of the cities and the wealth of the kingdom

Lack of Quorum in Lok Sabha

The Lok Sabha began a discussion on the general Budget but the House had to be adjourned before the scheduled time due to lack of quorum.

What is Quorum?

Quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that assembly.

Article 100 of the Indian Constitution states that the quorum to constitute a meeting of either House of Parliament shall be one-tenth of the total number of members of that House.

This means that the quorum of Lok Sabha (Lower House) is 55 and that of Rajya Sabha (Upper House) is 25.

Who decides the Quorum?

The quorum is usually decided at the beginning of the session and if it is not present when a vote is taken, the vote is invalid.

In the event of inadequate quorum, the Speaker or the Chairman can adjourn the House or suspend the sitting till the quorum is present.

Challenging a Quorum

Furthermore, the quorum can be challenged by any member of the House.

In the event that the quorum is challenged, the Speaker or the Chairman can direct that a count of the members present be taken.

If the quorum is not present, the House is adjourned. However, if the quorum is present, the business of the House is resumed.