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Odisha Ranks Among Top Five States in Urban Governance, Reveals UGI 2024

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Odisha has emerged as one of the top five states in India in terms of overall urban governance, according to the recently released Urban Governance Index (UGI) 2024 by Praja Foundation. Ranking second in the country, Odisha secured an impressive 55 out of 100 points across key governance indicators. The UGI 2024 evaluated states on four major categories: empowerment of elected representatives, city administration, citizen engagement, and fiscal empowerment. Odisha performed exceptionally well in the empowered citizens category, scoring 21 out of 25 points, highlighting the state’s efforts to engage citizens in urban governance. Odisha also earned 16.44 points out of a total of 30 in fiscal empowerment, and 15.26 points in the elected representatives category. These scores reflect Odisha’s consistent efforts toward building a more inclusive and financially empowered urban governance structure. While Kerala topped the overall index with 59 points, Odisha’s strong performance placed it ahead of Maharashtra, Chhattisgarh, and Madhya Pradesh, which ranked third, fourth, and fifth, respectively. The UGI 2024 study, covering 42 indicators, provides valuable insights into how states are working to strengthen their urban governance. Odisha’s ranking reflects its focus on empowering its citizens and improving fiscal management, positioning the state as a leader in urban governance reforms. As urban governance continues to evolve in India, Odisha’s progress serves as a model for other states striving to improve their urban administrative practices and citizen engagement. Source: ET Now

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NCGG Launches 6th Public Policy Training Programme for Cambodian Civil Servants

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The National Centre for Good Governance (NCGG) has commenced its 6th training programme on Public Policy and Governance for Cambodian civil servants, fostering international collaboration in public administration. Running from September 23rd to October 4th, the two-week course is being held at NCGG’s Mussoorie campus in collaboration with India’s Ministry of External Affairs (MEA). This initiative aims to enhance governance practices in Cambodia by sharing India’s expertise in public administration. A total of 39 senior and mid-level civil servants from Cambodia, representing the Ministry of Economy and Finance and the Ministry of Industry, Science, Technology, and Innovations, are participating in the programme. The training serves as a platform for sharing best practices and discussing institutional reforms for effective governance. V. Srinivas, Director General of NCGG and Secretary of the Department of Administrative Reforms and Public Grievances (DARPG), presided over the programme’s inauguration. In his keynote address, he highlighted the long-standing partnership between India and Cambodia and emphasized the importance of capacity-building initiatives. Srinivas discussed how finance and technology can drive governance reforms, citing India’s Aadhaar system as a transformative model for ensuring transparency and accountability. Representing Cambodia, Ith Hunly, Deputy Director at the Ministry of Science and Technology Innovations, expressed gratitude for the impactful training. He emphasized the importance of the lessons learned in supporting Cambodia’s governance modernization efforts, particularly in institutional reforms and citizen engagement. This programme builds on an MoU signed in April 2024 between India and Cambodia to bolster civil service development. NCGG’s expanding international outreach, with upcoming initiatives for BIMSTEC and ASEAN nations, underscores India’s growing commitment to sharing its governance expertise globally. Source: India News Network

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Delhi Ranks 24th Among 31 Cities in Urban Governance Index, Praja Foundation Report Reveals

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Delhi has been ranked 24th out of 31 Indian cities in the Urban Governance Index (UGI), according to a report released by the NGO Praja Foundation on Thursday. Despite retaining its rank from 2022, Delhi’s score dropped from 33.8 to 32.11 on a scale of 1 to 100, signaling a decline in its urban governance performance. The biennial analysis attributed Delhi’s poor ranking to policy paralysis, non-formation of key municipal committees, and one of the least empowered mayoral positions among major cities. The city’s rank fell largely due to the non-formation of standing, subject, and zonal committees, as well as a lack of human resource data. Furthermore, other cities improved their scores, contributing to Delhi’s relatively lower ranking. The report is based on research conducted in 43 cities across 28 states and three Union territories, with 2,213 key stakeholders including elected representatives, administrators, academics, and civil society members participating. The UGI measures governance based on four pillars: empowered elected representatives, city administration, citizen involvement, and fiscal autonomy. These are further divided into 13 sub-themes and 42 indicators. The Praja Foundation report pointed out that despite municipal elections in December 2022, Delhi’s governance issues have persisted due to legal and political tussles. The city’s mayor, whose term lasts just one year, lacks executive power over the municipal commissioner and cannot appoint key committee chairpersons. Additionally, Delhi does not provide adequate training or salaries for councillors, and most mid- and senior-level positions in the civic body are filled through external appointments, limiting local authority. The report recommended the devolution of all 18 functions listed under the 12th Schedule of the 74th Constitutional Amendment Act to the Municipal Corporation of Delhi to empower the city administration. Currently, the civic body handles only four of these functions independently.

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G-20 Nations Agree on Major Reforms of Global Governance Institutions

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In a landmark agreement, the Group of 20 (G-20) nations have committed to pushing for reforms of key global governance institutions, including the United Nations (UN), the World Trade Organization (WTO), and multilateral lenders. The agreement marks the first formal joint effort by the world’s 20 largest economies to modernize institutions established in the post-World War II era. Following a month-and-a-half of negotiations, the G-20 will announce this reform push during a foreign ministers’ meeting proposed by Brazil at the sidelines of the UN General Assembly. The draft communique, seen by Bloomberg News, underscores the urgency to update these institutions to reflect today’s political, social, and economic realities. “There is a growing perception that the United Nations, the Bretton Woods Institutions, and the World Trade Organization are in urgent need of reform,” the communique states. It highlights the need to revamp governance structures to better represent the diversity of member nations and improve their ability to tackle contemporary global challenges. One of the central reform goals includes expanding the composition of the UN Security Council to enhance the representation of underrepresented regions and groups. Additionally, the G-20 emphasizes the importance of transparency, equitable geographic distribution, merit, and gender balance within the UN Secretariat. On the financial front, the G-20 is advocating for increased financing for developing nations to combat poverty and address issues like climate change. The reforms also call for a stronger representation of these nations in global financial decision-making. As for the WTO, the G-20 views it as indispensable to a functional global trade system. The group seeks reforms that enhance trade and investment policies, positioning them as key drivers of global economic growth and prosperity. Brazil’s President, Luiz Inacio Lula da Silva, who is presiding over the G-20 this year, has long championed these reforms, and the joint statement is seen as a significant step forward, even though no timeline for implementation has been agreed upon. Source: TOI

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UN Tourism Joins G20 Presidency to Discuss Future of Tourism Policies and Governance

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UN Tourism has partnered with the G20 Presidency to advance tourism policies and transform governance across the sector. At a side event held on the eve of the official G20 Tourism Ministers’ meeting, discussions centered on a new approach to tourism policy, focusing on people and the planet. Held under the Brazilian Presidency of the G20, the event saw high-level representatives from countries including India, Canada, Saudi Arabia, and Spain, as well as the Inter-American Development Bank. Participants highlighted the vital role tourism plays in economic growth and social inclusion, as well as its potential to contribute to the Sustainable Development Goals (SDGs) and reduce global inequalities. In his opening address, UN Tourism Secretary-General Zurab Pololikashvili praised Brazil’s focus on inclusion and sustainability, stating, “To transform our sector, we need new policies and governance models that place communities and the environment at the center of tourism development.” Brazil’s Minister of Tourism, Celso Sabino, echoed this sentiment, emphasizing the country’s commitment to sustainable tourism. “Sustainability is a priority for President Luiz Inácio Lula da Silva’s government. Responsible tourism that protects the environment, culture, and history is key to prosperous national development,” Sabino said. The G20 Tourism meeting was notably held in Pará, in the heart of the Amazon. Key takeaways from the event included: A call for new governance models that involve resident consultation, stronger coordination among government agencies, and partnerships with local authorities and the private sector. The need for targeted policies on gender equality, social inclusion, climate action, and regional development. The importance of improving the measurement of tourism’s impact on economic, social, and environmental dimensions, including the recent approval of the United Nations Statistical Framework for Measuring the Sustainability of Tourism. The G20 economies, which account for over 70% of international tourist arrivals, have demonstrated resilience post-pandemic, with countries like Saudi Arabia, Spain, and Turkey surpassing pre-2019 tourist levels. The discussions from this event will guide future strategies aimed at reshaping global tourism governance and policy. Source: UNWTO

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UN Unveils Key Recommendations for Global AI Governance

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The United Nations (UN) has released a landmark report proposing a global framework to address the risks and governance gaps associated with artificial intelligence (AI). Titled “Governing AI for Humanity,” the report outlines seven key recommendations to ensure that AI development aligns with human rights, ethical principles, and sustainable development goals. The report, prepared by a 39-member UN advisory body established last year, highlights the need for a multi-stakeholder approach, urging governments, private companies, civil society, and international organizations to collaborate on AI governance. These recommendations will be discussed at an upcoming UN summit later this month. In a video statement accompanying the report’s release, UN Secretary-General Antonio Guterres emphasized the importance of the document, calling it a “key milestone” in the UN’s ongoing efforts to ensure that AI serves the common good and benefits all of humanity. Among the proposals, the report calls for the creation of a global AI governance system that is inclusive, transparent, and accountable. It advocates for an international AI standards exchange and a global AI capacity development network to strengthen governance capabilities. The report also stresses the need to address AI-related risks such as bias, privacy violations, and job displacement. One notable recommendation is the establishment of a global AI fund to close gaps in governance capacity and collaboration. Additionally, the UN proposes forming a global AI data framework to enhance transparency and accountability in AI systems. The report also warns of the concentration of AI development in a few multinational companies, which could lead to the technology being imposed on populations without proper input or oversight. To support these governance efforts, the UN proposes the creation of a small AI office to coordinate and implement these recommendations. As AI continues to rapidly evolve, the UN’s report aims to ensure that it remains a force for good, aligning with global standards and benefiting all sectors of society. Source: CGTN

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Arvind Kejriwal Resigns as Chief Minister, Atishi to Take Over

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Arvind Kejriwal, leader of the Aam Aadmi Party (AAP), has stepped down as the Chief Minister of Delhi, submitting his resignation to Lt Governor VK Saxena. Kejriwal’s decision came after recent political developments, and Atishi, a senior AAP leader and minister, has been selected by the party to succeed him. At a meeting with AAP legislators, Kejriwal proposed Atishi’s name, which was unanimously accepted by all present. Following her selection, Atishi met with Lt Governor Saxena to formally stake her claim to the Chief Minister’s post. Addressing the media after her meeting, Atishi remarked, “This is the first time in history that a Chief Minister steps down, asserting that the verdict of the people matters more than the court’s decision. The people of Delhi still see Arvind Kejriwal as their rightful leader, and they will bring him back in the next elections.” Atishi, a key figure in AAP since its inception and a trusted aide of Kejriwal, is set to take her oath in a special Assembly session on September 26-27. There will be no Deputy Chief Minister, and Atishi, who represents Kalkaji constituency, will manage a broad array of portfolios, including education, finance, and public works. Delhi Minister Gopal Rai praised Atishi’s appointment, noting the challenges AAP faces from “misuse of agencies aimed at destabilizing the government.” He said Atishi has the dual responsibility of serving the two crore citizens of Delhi while countering the political opposition. Atishi’s rise comes as a pivotal moment in Delhi’s political landscape. Known for her academic background as an Oxford graduate and a Rhodes Scholar, Atishi has been instrumental in improving Delhi’s education system. She gained prominence as the party’s public face during the AAP leadership’s legal challenges and Kejriwal’s arrest in the liquor policy case. Atishi’s immediate task will be to lead AAP into the upcoming Assembly elections, expected in February next year, and continue the party’s focus on governance and development for the people of Delhi. Source: India Today

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Arunachal Pradesh Cabinet Approves Major Reforms for Holistic Development and Governance

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The Arunachal Pradesh Cabinet, led by Chief Minister Pema Khandu, approved several landmark decisions during a meeting held on Monday. The meeting focused on the “Reforms 3.0” initiative, which aligns with Prime Minister Narendra Modi’s vision for a developed India and a developed Arunachal Pradesh. The Cabinet reviewed and reaffirmed 24 action points, initially laid out in its first meeting on June 13, 2024. These points form the foundation of the state’s ambitious governance reforms, aimed at improving the quality of life for citizens, addressing youth aspirations, and fostering development through increased investments. The government emphasized a “whole-of-government” approach to ensure the successful implementation of these action points, stressing the need for department collaboration and technological interventions. Key decisions were made to streamline various sectors, including health, governance, and recruitment processes: Health Sector Boost: The state government highlighted its commitment to improving health infrastructure. Over the past eight years, initiatives have been launched to ensure affordable, accessible, and quality healthcare for all. The Cabinet approved amendments to the Arunachal Pradesh Health Service Rules, 2000, and framed recruitment rules for newly created posts like Director of Medical Education and Director of Family Welfare. Additionally, 10 new Nursing Superintendent posts were created, and the ‘Arunachal Pradesh Allied and Health Care Council Rules, 2024’ were approved. Governance and Recruitment Reforms: To enhance transparency and efficiency, the Cabinet approved amendments to various recruitment rules, including those for Group-A, B, and C posts. Changes were made to the minimum qualifying marks for ex-servicemen in Group-C posts to address the issue of vacant posts reserved for this category. The Arunachal Pradesh Staff Selection Board Rules, 2018, were also amended to include the APSSB in the selection process for Meritorious Sportspersons, ensuring compliance with central policy guidelines. Legal and Fire Services: The Cabinet approved amendments to recruitment rules for public prosecutors to align with new criminal laws, including the Bharatiya Nagrik Suraksha Sanhita 2023 and Bharatiya Nyaya Sanhita 2023. The recruitment rules for Sub Fire Officers in the Department of Fire and Emergency Services were also updated to meet current requirements. These comprehensive reforms are expected to bring transformative changes to Arunachal Pradesh’s governance, health, and administrative sectors, driving progress and development across the state. Source: India Today

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 SEBI Levels Playing Field for FVCIs with New Governance Norms

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The Securities and Exchange Board of India (SEBI) has issued new norms that bring foreign venture capital investors (FVCIs) under the same regulatory framework as foreign portfolio investors (FPIs). This move marks a significant overhaul of the registration and governance framework for FVCIs, aiming to establish greater parity between the two investor categories. Under the updated norms, effective from January 1, 2025, FVCIs will be required to delegate their registration and governance processes to designated depository participants (DDPs), aligning with the current requirements for FPIs. The amendments also mandate FVCIs to disclose details of beneficial ownership under the Prevention of Money Laundering Act, enhancing transparency and compliance. Key changes include revisions to registration and eligibility criteria, application requirements, the rationalization of registration costs, and the introduction of a renewal fee. Previously, SEBI managed the registration and due diligence processes directly, but these responsibilities will now be handed over to DDPs. This change reflects SEBI’s broader strategy to reduce its direct involvement in the day-to-day operations of intermediaries, allowing the regulator to concentrate more on policy-making and regulatory oversight. Gazal Rawal, Partner at Cyril Amarchand Mangaldas, noted that while the changes may increase compliance burdens for DDPs amid ongoing regulatory adjustments, they will ultimately enhance governance and transparency. She added that the application process for FVCIs is expected to be streamlined in the future, similar to FPIs, with registration, PAN allotment, and KYC for bank and dematerialized accounts to be managed through a common form. Legal experts see these reforms as an effort to replicate SEBI’s success in delegating responsibilities to DDPs for FPIs. “New concepts like notifying the DDP of material changes, renewal of registration, and the imposition of late fees for renewal have been introduced for FVCIs. This move aligns SEBI’s approach to reduce its direct operational involvement with intermediaries,” said Ritul Sarraf of Nishith Desai Associates. Interestingly, restrictions under Press Note 3 on foreign direct investment from land-bordering countries and additional disclosure requirements for FPIs do not appear to apply to FVCIs, signaling nuanced regulatory considerations. The updated norms come after a year-long consultative process, providing stakeholders ample time to adapt. In 2023-24, 28 new FVCIs were registered, bringing the total to 279 as of March 2024, with investments increasing by 12% year-on-year to Rs 53,922 crore, predominantly in the information technology sector. SEBI’s revamped framework is expected to streamline processes, enhance transparency, and bring FVCIs and FPIs onto an equal regulatory footing, reinforcing India’s commitment to a robust and transparent investment ecosystem. Source: Business Standard  

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MCA Notifies ₹2,000 Crore Deal Value Threshold for Mergers and Acquisitions

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The Union Ministry of Corporate Affairs (MCA) has introduced a significant update to India’s merger and acquisition regulations by notifying the deal value threshold (DVT) provision under the Competition (Amendment) Act, 2023. Effective from September 10, this new rule mandates that all mergers or acquisitions with a deal value exceeding ₹2,000 crore must undergo review by the Competition Commission of India (CCI) if the target company has substantial business operations in India. This move aims to address potential gaps left by traditional asset or turnover-based thresholds, especially in the context of high-value transactions within digital markets. By incorporating the DVT, the MCA intends to provide additional scrutiny to ensure that large digital deals do not escape regulatory oversight merely because they do not meet conventional financial criteria. Alongside the DVT provision, new rules under the Competition (Minimum Value of Assets or Turnover) Rules have been introduced, offering a safe harbour for certain combinations. Transactions involving enterprises with assets below ₹450 crore and turnover less than ₹1,250 crore are exempt from CCI approval, thereby easing regulatory burdens on smaller deals unlikely to pose anti-competitive risks. The CCI has also updated its regulations under the Competition Commission of India (Combinations) Regulations, 2024, detailing how deal value is to be calculated. All forms of valuable consideration—whether direct, indirect, immediate, deferred, or non-cash—are included. This encompasses payments related to covenants, technology assistance, intellectual property rights, branding, and other inter-connected transactions within two years of the deal. The updated regulations also specify filing fees for different types of combinations: ₹30 lakh for Form I filings and ₹90 lakh for Form II filings. If a combination’s market share exceeds specified thresholds, a more detailed review (Form II) is mandated to assess its impact on competition. The newly notified regulations will have an overriding effect on all other regulations under the Competition Act related to mergers and combinations, reinforcing the importance of these updates. The amendments, passed by the Lok Sabha in 2023, are intended to modernize India’s merger control regime by introducing a more comprehensive assessment criterion focused on deal value, particularly relevant to rapidly evolving digital and tech markets. This regulatory overhaul marks a critical step in aligning India’s competition framework with global standards, ensuring fair competition and protecting the interests of consumers in an increasingly digital economy. Source: Times of India

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