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Reports suggest that a debt restructuring plan is being prepared for power distribution companies (discoms) in seven states - Uttar Pradesh, Punjab, Rajasthan, Haryana, Andhra Pradesh, Tamil Nadu and Madhya Pradesh. According to some estimates, the combined outstanding debt for discoms is Rs 2 lakh crore. Discoms have been facing heavy losses. According to a Planning Commission Report, the cost of supplying electricity increased at a rate of 7.4 per cent annually between 1998-99 and 2009-10. The average tariff has also increased at an annual rate of 7.1 per cent over the same period. However, the report shows that the average tariff per unit of electricity has consistently been much lower than average cost of supply per unit. Between 2007-08 and 2011-12, the gap between average cost and average tariff per unit of electricity was between 20 and 30 per cent of costs.
Average cost and average tariff per unit of electricity (Rs per kWh)
|
Year |
Unit cost |
Average tariff per unit |
Gap between cost and tariff |
Gap as percentage of unit cost |
| 2007-08 |
4.04 |
3.06 |
0.98 |
24% |
| 2008-09 |
4.6 |
3.26 |
1.34 |
29% |
| 2009-10 |
4.76 |
3.33 |
1.43 |
30% |
| 2010-11 |
4.84 |
3.57 |
1.27 |
26% |
| 2011-12 |
4.87 |
3.8 |
1.07 |
22% |
Source: “Annual Report 2011-12 on the Working of State Power Utilities and Electricity Departments”, Planning Commission State discoms have been losing money due to higher costs than revenues, as well as high transmission and distribution (T&D) losses. The commercial losses for discoms in India (after including subsidies) increased from Rs 16,666 crore in 2007-08 to Rs 37,836 crore in 2011-12. Reports suggest that the restructuring plan being prepared will be worth Rs 1.2 lakh crore in short-term liabilities. Half of the proposed amount would be issued as bonds by the discoms, backed by a state government guarantee. Banks and financial institutions would reschedule the remaining Rs 60,000 crore of debt, with a moratorium of three years on payment of the principal amount. State governments that adopt the financial restructuring plan would not recover any loans given to discoms before they start showing profits. Under a proposed transition finance mechanism, the central government would reimburse 25 per cent of the principal amount of bonds to states that fully implement the plan. Also, states that achieve a reduction in T&D losses above a targeted level in three years may be given grants. Newspaper reports also suggest that states will have to prepare plans for eliminating the gap between the average cost and average tariff per unit of electricity.
Yesterday, the Governor of Karnataka promulgated the Karnataka Protection of Right to Freedom of Religion Ordinance, 2022. The Ordinance prohibits forced religious conversions. A Bill with the same provisions as the Ordinance was passed by the Karnataka Legislative Assembly in December 2021. The Bill was pending introduction in the Legislative Council.
In the recent past, Haryana (2022), Madhya Pradesh (2021), and Uttar Pradesh (2021) have passed laws regulating religious conversions. In this blog post, we discuss the key provisions of the Karnataka Ordinance and compare it with existing laws in other states (Table 2).
What religious conversions does the Karnataka Ordinance prohibit?
The Ordinance prohibits forced religious conversions through misrepresentation, coercion, allurement, fraud, or the promise of marriage. Any person who converts another person unlawfully will be penalised, and all offences will be cognizable and non-bailable. Penalties for attempting to forcibly convert someone are highlighted in Table 1. If an institution (such as an orphanage, old age home, or NGO) violates the provisions of the Ordinance, the persons in charge of the institution will be punished as per the provisions in Table 1.
Table 1: Penalties for forced conversion
|
Conversion of |
Imprisonment |
Fine (in Rs) |
|
Any person through specified means |
3-5 years |
25,000 |
|
Minor, woman, SC/ST, or a person of unsound mind |
3-10 years |
50,000 |
|
Two or more persons (Mass conversion) |
3-10 years |
1,00,000 |
Sources: Karnataka Protection of Right to Freedom of Religion Ordinance, 2022; PRS.
Re-converting to one’s immediate previous religion will not be considered a conversion under the Ordinance. Further, any marriage done for the sole purpose of an unlawful conversion will be prohibited, unless the procedure for religious conversion is followed.
How may one convert their religion?
As per the Ordinance, a person intending to convert their religion is required to send a declaration to the District Magistrate (DM), before and after a conversion ceremony takes place. The pre-conversion declaration must be submitted by both parties (the person converting their religion, and the religious converter), at least 30 days in advance. The Ordinance prescribes penalties for both parties for failing to follow procedure.
After receiving the pre-conversion declarations, the DM will notify the proposed religious conversion in public, and invite objections to the proposed conversion for a period of 30 days. Once a public objection is recorded, the DM will order an enquiry to prove the cause, purpose, and genuine intent of the conversion. If the enquiry finds that an offence has been committed, the DM may initiate criminal action against the convertor. A similar procedure is specified for a post-conversion declaration (by the converted person).
Note that among other states, only Uttar Pradesh requires a post-conversion declaration and a pre-conversion declaration.
After the religious conversion has taken place, the converted person must submit a post-conversion declaration to the DM, within 30 days of the conversion. Further, the converted person must also appear before the DM to confirm their identity and the contents of the declaration. If no complaints are received during this time, the DM will notify the conversion, and inform concerned authorities (employer, officials of various government departments, local government bodies, and heads of educational institutions).
Who may file a complaint?
Similar to laws in other states, any person who has been unlawfully converted, or a person associated to them by blood, marriage, or adoption may file a complaint against an unlawful conversion. Laws in Haryana and Madhya Pradesh allow certain people (those related by blood, adoption, custodianship, or marriage) to file complaints, after seeking permission from the Court. Note that the Karnataka Ordinance allows colleagues (or any associated person) to file a complaint against an unlawful conversion.
*In Chirag Singhvi v. State of Rajasthan, the Rajasthan High Court framed guidelines to regulate religious conversions in the state.
