'Obscure policy as good as no policy'

Q&A/ Rajesh Tandon, founder, PRIA

. Excerpts:

What does the Cabinet approval of the new NGO policy broadly imply?

It is the first time the government has made such a policy. Secondly, the policy gives a most inclusive definition to NGOs. A wide range of organisations engaged in public service based on cultural, scientific, social and educational considerations, informal groups, charitable organisations' networks and even the All India Management Association are included.

What are the main changes you foresee now?

The purpose of the policy is to create an enabling environment for NGOs. The Registration of Societies Act and the Income Tax Act need to be modernised and rationalised.

This is acknowledged in the policy. It says the government will examine measures to facilitate, rationalise and liberalise registration laws. Income tax exemption covers all those registered as a society. So even those who do no charity are getting tax exemption.

What about the Foreign Contribution Regulation Act Amendment Bill, which is facing criticism?

The FCRA concerns only those who get foreign funds. The policy says it will review it in consultation with a joint consultative group, including NGOs. It means NGOs will have a say in matters that concern them.

Will state governments now change their registration laws?

We hope so and we will campaign for it. In Tamil Nadu, for instance, the government amended its registration law to force a government official on the board of every NGO! This was after funds came pouring in after the tsunami. It is the worst example of interference and is meant to lead to greater involvement of the government in NGOs as has happened with cooperatives.

In Uttar Pradesh, NGOs have to renew their registration every five years. In Uttarakhand, every NGO was asked to re-register. So we need a model law made by the Centre to be adopted by all states.

But before all that, the policy has to be disseminated in all states. The prime minister himself should announce it and write to all the chief ministers. An obscure policy is as good as no policy.

What about credibility norms and setting standards for NGOs?

One size does not fit all. Especially when it comes to setting credibility norms for NGOs. The Institute of Chartered Accountants said recently that international standards should be adopted. One cannot say that if PricewaterhouseCoopers audits an NGO, the problem is solved. A small group working in a remote village can't ever afford such practices.

So what is the solution?

We are taking the initiative at VANI (a group of 2,000 NGOs) by setting up a group of experts to devise ways to apply different approaches to different types of NGOs.

For more, visit https://bsmedia.business-standard.comwww.pria.org