Elections to the 14th Legislative Assembly of Karnataka are scheduled to be held on May 5, 2013. Of the 224 assembly constituencies that will go into polls, 36 are reserved for Scheduled Castes and 15 for Scheduled Tribes. Voting will take place in 50,446 polling stations across Karnataka [1.  Election Commission India]. In this blog, we analyse electoral trends between 1989 and 2008 and the performance of the current Karnataka Assembly.

Figure 1: Electoral trends since 1989, source: Election Commission of India, PRS.

 

In the last elections, held in 2008, the Bharatiya Janata Party (BJP) formed the government, winning 110 of the 226 seats in the Assembly. The BJP has steadily increased its seat share since 1989: it won four seats in 1989, 44 in 1999 and 79 in 2004. The Indian National Congress (INC) had a 179 seat majority in 1989 (79% of the assembly) which fell to 34 seats in 1994. The INC subsequently increased their tally from 65 seats in 2004 to 80 seats in 2008. However, the INC continued to have the highest share of votes polled (except in 1994) even as its share of seats decreased. The 1990s also saw the emergence of the Janata Dal (S) who won the 1994 elections with 115 seats. Janata Dal’s emergence is part of a broader theme of increased participation by regional parties in Karnataka. In 1989, 20 parties contested the elections, seven of which were national parties but in 2008, 30 parties contested, of which only five were national parties. Performance of the current Assembly As we approach the end of the term of the current Assembly, a brief look at its work from 2008 to 2013:

  • During its five-year-term, the Assembly sat for a total of 144 days, an average of 31 days each year. In comparison, the Lok Sabha in its current term sat for an average of 68 days per year. Among states, the Kerala Assembly sat for an average of 50 days, Haryana for 13 days and Rajasthan for 24 days, each year. Figure 2: Days of sitting - Karnataka assembly, source: RTI, PRS.

     

  •  Members of the Karnataka Assembly recorded an average attendance of 81 per cent for the whole term, broadly in line with the Lok Sabha attendance of 77 per cent. Nearly one in five members registered more than 90 per cent attendance. In comparison, members of the 11th Himachal Pradesh Assembly recorded an attendance of 95 per cent, while the attendance of the 12th Gujarat Assembly stood at 83 per cent.
  • Some of the significant Bills passed by the 14th Karnataka Assembly include the Karnataka Guarantee of Services to Citizens Bill and the Karnataka Ground Water (Regulation and Control of Development and Management) Bill.  In 2012, the Assembly also passed the Karnataka Prevention of Cow Slaughter and Preservation Bill.

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 was passed by Parliament on August 4, 2021.  It amends the Airports Economic Regulatory Authority of India Act, 2008.  This Bill was introduced in Lok Sabha during the budget session this year in March 2021.  Subsequently, it was referred to the Standing Committee on Transport, Tourism, and Culture, which submitted its report on July 22, 2021.

Typically, cities have one civilian airport which provides all aeronautical services in that area.  These services include air traffic management, landing and parking of aircraft, and ground handling services.  This makes airports natural monopolies in the area.  To ensure that private airport operators do not misuse their monopoly, the need for an independent tariff regulator in the airport sector was felt.  Hence, the Airport Economic Regulatory Authority (AERA) was established as an independent body under the 2008 Act to regulate tariffs and other charges (development fee and passenger service fee) for aeronautical services at major airports.  

For the remaining airports, these tariffs are determined by the Airports Authority of India (AAI), which is a body under the Ministry of Civil Aviation.  In addition, AAI leases out airports under the public-private partnership (PPP) model for operation, management, and development.  Before AERA was set up, AAI determined and fixed the aeronautical charges for all airports.  It also prescribed performance standards for all airports and monitored them.  Various committees had noted that AAI performed the role of airport operator as well as the regulator, which resulted in a conflict of interest.

The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.  The central government may also designate any airport as a major airport through a notification.  The Bill adds that the central government may group airports and notify the group as a major airport.  Thus, when a small airport will be clubbed in a group and the group is notified as a major airport, its tariff will be determined by AERA instead of AAI.  Note that AERA will not determine the tariff if such tariff or tariff structures or the amount of development fees has been incorporated in the bidding document, which is the basis for the award of operatorship of that airport.

The amendments under the Bill raise some concerns regarding the grouping of airports and the capacity of the regulator.

  • Grouping of airports: The Statement of Objects and Reasons of the Bill states that government will club together profit-making and loss-making airports and offer them as a package in PPP mode to the prospective bidders.  This may be a policy decision to revive loss-making airports.  With the passage of the Bill, AERA will treat a group of airports as one entity.  One of the ways in which tariffs may be structured for the grouped entity would be through cross-subsidies.  This would involve compensating loss-making airports with the revenue generated from the profit-making airports.  If such a model is used, it may increase the cost of services to the end-consumers of profit-making airports or could reduce the profitability of such airports.  The experiences from other sectors such as electricity show that cross-subsidisation may lead to pricing problems in long term. 
     
  • Capacity of the regulator: AERA was created to provide a level playing field in the aviation sector and resolve the conflict of interest that arises with AAI both operating and regulating tariffs at airports.  During the examination of the AERA Bill, 2007 by the Standing Committee, the Ministry of Civil Aviation informed the Committee that AERA should regulate tariff and monitor performance standards only at major airports.  Depending upon future developments in the sector, and as the regulator built its capacity, other functions could be subsequently assigned to the regulator.

As of 2020, there are 125 operational airports in India (includes international airports, customs airports, and civil enclaves).  The number of airports under the purview of AERA increased from 11 in 2007 to 24 in 2019.  For the remaining airports, tariffs are still determined by AAI.  In the last five years (2014 to 2019), air passenger traffic increased from 11.3 crore to 34.9 crore (which is an annual growth rate of 10%).  Till 2030-31, air traffic in the country is expected to continue growing at an average annual rate of 10-11%

Before 2019, an airport with annual passenger traffic of at least 15 lakh was considered a major airport.  In 2019, the AERA Act was amended to increase this threshold to 35 lakh.  The Statement of Objects and Reasons of the 2019 Bill stated that the exponential growth of the aviation sector has put tremendous pressure on AERA, while its resources are limited.  Therefore, if too many airports come under the purview of AERA, it will not be able to perform its functions efficiently.  Consequently, in 2019, the number of airports under the purview of AERA was reduced.  Now, with the passage of the 2021 Bill, AERA will have to again regulate tariffs at more airports as and when notified by the central government.  Thus, the capacity of AERA may be needed to be enhanced for extending its scope to other airports.

Table 1: List of major airports in India (as of June 2019)

Ahmedabad

Delhi  

Mumbai  

Amritsar  

Goa  

Patna  

Bengaluru  

Guwahati  

Pune  

Bhubaneswar     

Hyderabad  

Raipur  

Calicut  

Jaipur  

Thiruvananthapuram     

Chandigarh  

Kolkata  

Tiruchirappalli     

Chennai  

Lucknow  

Varanasi  

Cochin  

Mangalore  

Kannur 

Source: AERA website as accessed on August 2, 2021; PRS.