There are indications that the Lok Pal Bill, 2011 is likely to be taken up for consideration and passing during the current Winter session of Parliament.  The Bill was introduced on Aug 4, 2011 in the Lok Sabha after a prolonged agitation led by Anna Hazare (see PRS analysis of the Bill).  It was referred to the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice (see PRS note on Committee Systems).  The Committee submitted its report on December 9, 2011.  The report includes 10 dissent notes from 17 MPs. (a)    Kirti Azad, Bal Apte, D.B. Chandre Gowda, Harin Pathak, Arjun Ram Meghwal, and Madhusudan Yadav. (b)   Ram Jethmalani (c)    Ram Vilas Paswan (d)   Shailendra Kumar (e)    Prasanta Kumar Majumdar (f)     Pinaki Misra (g)    A. Sampath (h)    S. Semmalai (i)      Meenakshi Natrajan, P.T. Thomas, and Deepa Dasmunshi (j)     Vijay Bahadur Singh Presently, the government and the Opposition are in the process of formulating their stands on various key issues such as inclusion of the Prime Minister, the lower bureaucracy and the role of the Central Investigation Bureau.  We provide a broad overview of the views of the members of the Committee on various key issues. Unanimity on issues On some issues, there was unanimity among the Committee members:

  • Constitutional status for Lokpal.
  • Immunity from prosecution for the MPs for any vote and speech in the House
  • Exclusion of judiciary from the ambit of the Lokpal.
  • Qualification of chairperson and Lok Pal members.
  • Selection process of Lok Pal members.
  • Lokpal should not have the powers to tap phones.

Dissent on issues Certain members of the Committee dissented on specific issues.  In Table 1, we list the issues and the reason for the dissent. Table 1: Recommendation of Standing Committee and dissent by individual MPs

Issues Standing Committee recommendations Points of dissent Dissenting MPs
Inclusion of Prime Minister Committee left the decision to Parliament stating that there are pros and cons to each view. -     PM should be included.  -     PM should be brought under the Lok Pal with some exceptions for national security, foreign policy, atomic energy etc. -     The decision to investigate or prosecute the PM should be taken by the Lok Pal with 3/4th majority. -  Prasanta Kumar Majumdar, A. Sampath.  -  Kirti Azad etc, Shailendra Kumar, Pinaki Misra.      
Grievance redressal mechanism Enact separate law for a grievance redressal mechanism. Include in the Lok Pal Bill. Kirti Azad etc, Ram Jethmalani, Shailendra Kumar.
Inclusion of bureaucracy Include Group B officers in addition to Group A. -     Include all groups of govt employees.  -     Include Group ‘C’. -     Do not include bureaucrats. -     Kirti Azad etc, A. Sampath.  -     Meenakshi Natrajan etc, Shailendra Kumar, Prasanta Kumar. Majumdar, Pinaki Misra, Vijay Bahadur Singh. -     Ram Vilas Paswan.
Lokayukta Single, central law to deal with Lok Pal and state Lokayuktas to ensure uniformity in prosecution of public servants. States should retain power to constitute Lokayuktas. -     S. Semmalai.
Private NGOs, media and corporate Include all entities with specified level of govt control or which receive specified amount of public donations or foreign donations above Rs 10 lakh. No private organsiations should be included. - Kirti Azad etc., Ram Vilas Paswan.
Composition of search and selection committees Selection Committee: In addition to PM and Speaker, it should include the Chief Justice of India, an eminent Indian unanimously nominated by the CAG, CEC and UPSC chairman and only Leader of Opposition of Lok Sabha.  Search Committee: Mandatory to constitute. Minimum 7 members with 50% members from SC/ST, OBC, minorities and women.   Selection Committee: PM, Minister, LoPs of both Houses, two judges and CVC. Search Committee: CJI, CAG, CEC, Cabinet Secretary, judges of Supreme Court and High Courts.  Selection Committee: PM, LoP in the Lok Sabha, one judge of SC and one Chief Justice of a HC, CVC, CEC and CAG. Search Committee: 10 members out of which 5 should be from civil society and 5 should be retired Chief Justice, CVC, CAG and CEC.  Half the members to be from SC/STs, OBCs, minorities or women. -  Kirti Azad etc.  -  Shailendra Kumar.
Removal of Lok Pal In addition to petitioning the President, a citizen should be allowed to approach the Supreme Court directly with a complaint.  If admitted, it would be heard by a 5 judge bench.  If President does not refer a citizen’s petition, he should give reasons. Investigation should be conducted by an independent complaint authority.  Heavy fines should be imposed in case of a false or frivolous complaint. Instead of the President, the Supreme Court should have power to suspend a member pending inquiry.    - Shailendra Kumar.
Role of CVC and CBI CVC should investigate Group C and D employees.  Instead of Lok Pal’s investigation wing, the CBI should investigate cases after inquiry by the Lok Pal.  CBI to have autonomy over its investigation.  Lok Pal shall exercise general supervision over CBI. CBI should be under the control of the Lok Pal.  The CBI Director should be appointed by the Lok Pal’s selection committee. The CVC should be under Lok Pal and the SVCs under the state Lokayuktas. -  Ram Jethmalani, Shailendra Kumar.  -  A. Sampath. -  Meenakshi Natrajan etc.
False and frivolous complaints Term of imprisonment should be maximum six months.  Amount of fine should not exceed Rs 25,000.  Specifically provide for complaints made in good faith in line with the Indian Penal Code. The term of imprisonment should not exceed 30 days. - Kirti Azad etc.
Article 311 Article 311 of the Constitution should be amended or replaced with a statute. The procedure adopted by the disciplinary authority should conform to Article 311. - Kirti Azad etc, Meenakshi Natrajan etc.   
Finance Lok Pal Bill states that all expenses of the Lok Pal shall be charged to the Consolidated Fund of India (no need for Lok Sabha clearance).  The Committee did not make any recommendation with regard to finances of the Lok Pal. Lok Pal’s expenses should be cleared by the Parliament.  Lok Pal should present its budget directly to Parliament rather than through a ministry. -  Kirti Azad etc.  -  Shailendra Kumar.
Sources: The Lok Pal Bill, 2011; the Department Related Standing Committee Report on the Lok Pal Bill, 2011 and PRS.

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.