Cabinet Decisons Current Affairs

Cabinet approves MoU between India and Japan in field of Silk Industry

The Union Cabinet has approved Memorandum of Understanding (MoU) between India and Japan for collaborative research in the field of silkworm and silk industries. The MoU was signed between Central Silk Board (CSB), India and National Institute of Agrobiological Sciences (NIAS), Japan in November 2016.

Key Facts

The MoU was of scientific and technological nature. Its aim was to initiate Collaborative Research for developing prolific bivoltine hybrids of silkworm suitable for Indian tropical conditions. Its purpose was to help in developing prolific hybrid silkworms, which will improve quality standards and manufacturing capacity of Indian sericulture industry to enhance exports of silk and silk products. It is expected that subsequent to MoU, Indian Textiles and Apparel Industry will be able to produce world class silk and silk products. The improvement of quality and productivity will ultimately increase export of silk products.

India’s Silk Industry

India’s Silk Industry is world’s second largest after China. The total production of silk in India stood at around 23,000 tonnes in the year 2011-12. India produces four varieties of silk produced, viz. Mulberry, Eri, Tasar and Muga. About 80% of silk produced in country is of mulberry silk, majority of which is produced in the three southern States of Karnataka, Andhra Pradesh and Tamil Nadu. Sericulture Provides gainful occupation to around 63 Lakh persons in rural and semi-urban areas in India. About 97% of raw silk in India is produced in five Indian states of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal and Jammu and Kashmir.

Tags:

Union Cabinet approves ordinance to pay salaries by cheques

The Union Cabinet has approved a draft ordinance to empower states and allow industries to pay workers’ wages digitally, through a direct bank transfer to accounts or by cheque in a bid to encourage cashless transactions.

The draft ordinance proposes changes to the Section 6 of the Payment of Wages Act, 1936 to encourage cashless transactions. It will need the President’s assent to become law as per article 123 of the Constitution.

Key Facts
  • It will allow industries to pay wages to workers earning up to Rs. 18,000/ month, without taking their explicitsalary consent as required under present Act.
  • However, wage payment through the banking system will only be optional, until State governments or Union Government come up with a notification for specific industries since Labour is in the concurrent list.
  • The present law (1936 Act) states that all payment of wages should be in cash. Under it has mandatory provision asking employers to obtain written permission of the worker to pay either by cheque or by crediting wages to his or her bank account.
Comment

The payment of wages through cheque or DBT of employed persons has twin motives  i.e. it will reduce complaints regarding non-payment or less payment of minimum wages and serve purpose of digital and less cash economy. The move is significant in view of the Union Government is promoting cashless transactions after its decision to scrap the old high value Rs. 500 and Rs. 1,000 currency notes. Earlier Payment of Wages (Amendment) Bill, 2016 introduced in the Lok Sabha during 2016 winter session but was not cleared owing to the impasse in Parliament.

Tags:

123