1.

INTRODUCTION

The Central Excise and Salt Act, 1944 (1 of 1944) was amended in 1991 to enable the Central Government to create the Consumer Welfare Fund where the money, which is not refundable to the manufacturers etc., shall be credited. The money credited to the Fund is to be utilized by the Central Government for the welfare of the consumers in accordance with the Rules framed. Consumer Welfare fund rules were notified on 25th November, 1992 Subsequently on the recommendations of the Central Consumer Protection Council, the Rules were further mended on 27th January, 1994 to make them more broad based. The rules were further amended on 16.06.94, 16.01.95 and 13.6.2002. The fund has been set up by the Department of Revenue. However, the Ministry of Consumer Affairs, Food and Public Distribution will operate it. The overall objective of the consumer Welfare Fund is to provide financial assistance to promote and protect the welfare of the consumers and strengthen the voluntary consumer movement in the country particularly in the rural areas

2.

SCHEMES & PROJECTS FINANCED FROM CONSUMER WELFARE FUND

CONSUMER CLUBS
This scheme was launched in 2002, according to which a consumer club shall be set up in each Middle/High/Higher Secondary school/college affiliated to a government recognized Board/University. This scheme has been decentralised and transferred to the Governments of States/UTs with effect from 1.04.2004. All interested NGO/VCOs shall apply to the Nodal Officer in the Food, PD & Consumer Welfare Department of the respective States/UTs. SCHEME ON PROMOTING INVOLVEMENT OF RESEARCH ORGANISATIONS, UNIVERSITIES AND COLLEGES This scheme has been launched with a view to sponsor research and evaluation studies in the field of consumer welfare to provide solution to the practical problems being faced by the consumers, to sponsor seminars/workshops/ conferences on the consumer related topics, and to have necessary inputs for the formulation of policy/programme/scheme for the protection and welfare of the consumers. The Indian Institute of Public Administration, New Delhi, has been identified as the nodal organization to administer the scheme, at the address given below: Prof. S.S. Singh, Consultant, Indian Institute of Public Administration (IIPA), I.P. Estate, Ring Road, New Delhi- 110002. Tel: 23702400.

NATIONAL CONSUMER HELP LINE

A National Consumer Helpline project has been established in collaboration with Delhi University, Department of Commerce. Consumers can call from any where in India to the number 1600-11-4000 from MTNL/BSNL lines free of charge and get advice regarding their problem as a consumer. The Helpline has been formally launched on 15.3.2005 on the World Consumer Rights Day and is functional on all working days from 9.30 A.M to 5.30 P.M. A Facilitation Center of the Help Line is also functioning at the Reception, Gate No: 6 of Krishi Bhawan from 9.30am to 5.30 am. MOU with the Delhi University CONSUMER ONLINE RESOURCES AND EMPOWERMENT CENTER FOR ONLINE COMPLAINT AND ASSISTANCE The CORE Center has been conceived to function as the most scientific and effective system of collection, dissemination and redressal of consumer related information and complaints. It was launched on the World Consumer Day i.e. on 15th March, 2005. The CORE Center consists of the following:a) National Resource Center; b) Online database/portal;

c) Network between Consumer Organizations, Consumer information Centers, Government and Non Government Organization. d) Online Complaint Registration and Mediation Mechanism. Consumers can now register their complaints in the CORE through the website www.core.nic.in.

PROJECT ON COMPARATIVE TESTING OF PRODUCTS 3. STATE CONSUMER WELFARE FUND AND MODEL GUIDELINES
The Department has decided to decentralize and transfer the Consumer Awareness and Consumer Club schemes to the State/UT Governments with effect from 1 st April, 2004. Consequently, it has been decided to facilitate the States/UTs to set up their own Consumer Welfare Fund by making a one-time contribution of an amount proportionate to the number of districts, by the Centre (Department of Consumer Affairs) and the State Government in the ratio 50:50 (Centre : State). In case of special category States, like North Eastern States, Sikkim, J&K ,Uttaranchal A&N Islands and Lakshdweep the ratio will be 90:10 (Centre : State). The State Government would be required to first make their contribution towards the fund in a separate head of account, and then apply to the Department for grant of Central share. The State CWF would be set up in the same pattern as the Central CWF, and will be a non-transferable, nonlapsable and non-plan fund outside the Consolidated Fund, and to be administered by a uniform guidelines drafted/approved by the Department.

4. EVALUTION REPORT ON THE SCHEMES OF CONSUMER AWARENESS, DCIC AND JAGRITI SHIVIR YOJANA
The Department has undertaken evaluation of the Consumer Awareness, Jagriti Shivir Yojana and District Consumer Information Center schemes by an independent agency in order to streamline the schemes, study their utility and make modifications. On the basis of the Report it has since been decided to discontinue these Schemes. Hence these schemes are not in operation at present.

National Action Plan for Consumer Awareness and Redressal and Enforcement of Consumer Protection Act, 1986
Consequent upon the decision taken in the 50th National Development Council (NDC) meeting held on 21.12.2002, Consumer Protection was identified as a thrust area, and the Department of Consumer Affairs has been assigned Evolving a National Action Plan for Consumer Awareness and Redressal and Enforcement of Consumer Protection Act, 1986. It is relevant to mention here that during the 10th Plan Department received approval of Rs. 27.20 crores only for consumer protection and related activities under Plan. The Department has proposed enhancement of this allocation of Rs. 312 crores during the Plan period, as per details at Annex-I and proposes following National Action Plan; 1. Undertaking Consumer Awareness programmes: Educating more than 100 crore of people of various categories on various subject matters of consumer interest which are being dealt with by different Ministries/Departments is a gigantic task and the same cannot be undertaken as a sustained national programme unless the Planning Commission approves a substantial budget. Therefore, Department of Consumer Affairs has proposed an allocation of Rs.200 crores during the 10th Plan period for generating and strengthening consumer awareness in the country. A media Plan has also been prepared in consultation with DAVP during this Plan period for Rs. 200 crores and is enclosed at Annex-II. With the existing annual allocation of Rs. 3.10 crores for Consumer Protection Department is having, a regular 15 minutes weekly radio programme on AIR, a recently started video programme of 30 minutes on Doordarshan. In addition an educational video programme for school children on CD has been prepared and print publicity is undertaken occasionally. These programme will be continued.

2. Strengthening Consumer Grievance Redressal Machinery: (i) Strengthening Infrastructure of National Commission: In terms of the provisions of sections 9 and 20 of the Consumer Protection Act, 1986, the responsibility for setting up of the National Commission and also for providing necessary infrastructure and staff rests with the Central Government. The National Consumer Disputes Redressal Commission (NCDRC) which is the apex consumer court, has been functioning since 1988 at New Delhi in Janpath Bhavan. The present accommodation provided by the Ministry of Urban Development is grossly inadequate to meet their requirements of office space. It has no parking facilities and is situated in a highly crowded area, which is not at all convenient for the consumers. In view of this it was felt necessary to have a separate building for the National Commission, commensurate with the status it deserves as it is a five member Commission presided over by a retired Judge of the Supreme Court and the appeal against their decision lies before Supreme Court. With the amendment of the Consumer Protection Act, 1986 in December, 2002 now National Commission can have additional benches. The second Bench has started functioning w.e.f. 24th September, 2003. Two addiotnal posts of Members in the Commission have been created with the notification of the Consumer Protection (Amendmet) Rules, 2004 vide GSR No. 175(E) dated 5th March, 2004 which will enable the Department to have third bench of the Commission shortly. For these Benches further accommodation is needed. On the request of the Government, Ministry of Urban Development had allotted a piece of land at INA Complex at the cost of Rs.27 lakhs. As per the estimates provided by CPWD, Rs.11 crores is required for completion of the building, against which Planning Commission had agreed to provide Rs.6.50 crores in the 10th Plan . The gap of Rs. 4.50 crores is required to be met for full construction of Upabhokta Bhavan. (ii) Holding Circuit Benches of National Commission: National Commission is located at Delhi and consumers from all the country have to come to delhi with their cases. For the convenience of consumers, it has been decided that National Commission will hold Circuit Benches for a period of 23 weeks in different States. Arrangements are being worked out in consultation with State Govts. which are required to provide for basic facilities and infrastructure for the purpose. (iii) Strengthening Consumer Forums: In so far as the consumer forums at the State levels are concerned, though the responsibility for establishment of these forums in the States as well as providing all necessary infrastructure for their effective functioning rests with the State Governments, in view of the financial position of the States, many of the States are not able to meet even the minimum infrastructural requirements of the Consumer Forums which affect the efficiency of the forums. Therefore, the Planning Commission had allocated Rs.61.80 crores during 1995-99 at the rate of Rs.50 lakhs for each of 32 State Commissions and Rs.10 lakhs each for 458 District Forum which were functioning in 1995 to strengthen their infrastructure as a one-time grant so as to supplement the efforts of the State Governments. Since 1995, 113 district forums and three State Commissions have been added in newly created Districts/States. States are repeatedly asking for additional funds to enable them to provide proper infrastructure for all the consumer forums. In view of above position Department proposes for the following; (a) For strengthening the infrastructure of Forums created after 1995 a sum of Rs.19.20 crores may be allocated @ Rs.75 lakhs for each the three State Commission and @ Rs.15 lakhs for each the 113 District Forum (b) A sum of Rs.1.62 crores is proposed to strengthen infrastructure for U.Ts of Andaman N. Islands, Daman & Diu and Chandigarh as they could not draw full amount on previous occasion. (c) A sum of Rs. 30.90 crores is proposed to further assist @ Rs.5 lakhs for each District Forum and @ Rs.25 lakhs for each State Commission which were covered under the one-time grant allocated during the year 1995 . (d) In order to establish complete interlinking of computer networking of consumer courts, namely, National Commission, 35 State Commission and 571 District Forums for its monitoring and accessing various kinds of data and for the effective functioning of these forums in the interest of consumers, a sum of Rs. 27.39 crores is proposed as per the estimates worked out by NIC. 3. Strengthening Standards Laboratories of Weights & Measures: The Department of Consumer Affairs also administers the Standards of Weights & Measures Act, 1976 and Standards of Weights & Measures Enforcement Act, 1985 for regulating all the weighing and measuring instruments used in trade and commerce. In the interest of consumers, it is, therefore, necessary that these instruments are accurate so that the consumers get the right quantity, which they pay for. Any inaccuracy in weighing and measuring instruments used by the trade and commerce would lead to loss to the consumer in general to the extent of thousands of crores.

Therefore, the weighing and measuring instruments are controlled by periodical checking against the Standards of Weights & Measures as required to be maintained. The enforcement of the provisions of the Acts and Rules, however, rests with the State Governments. They are not able to effectively calibrate against the standards required to be maintained in their State Standard Laboratories (secondary standards) by upgrading the standards which were mostly purchased during 1960s due to the financial constraints. Non replacement of the Standards results in inaccuracy in measurements in trade and a huge loss to the consumers in crores of rupees on day to day basis. It is, therefore, absolutely necessary that the State Weights & Measures Laboratories are upgraded by providing one set of standard balances to each laboratory so that it may serve as a bench mark and all other standards used in the State could be calibrated against them. There are 102 secondary standard laboratories functioning in different States of the country which need urgent upgradation to protect the interest of the consumers. The Central Government has already upgraded the standards for 9 laboratories located in different areas through Consumer Welfare Fund (CWF). It is proposed to provide funds for one-time grant of Rs.14 crores @ Rs.15 lakhs for providing one set of standard balances per secondary standard laboratory for strengthening the remaining 93 State Standard Laboratories in the 10th Plan in a phased manner.