The Lokpal and Lokayuktas Bill, 2011 was passed by Lok Sabha yesterday. The Bill will be discussed next by Rajya Sabha. Unlike the Lok Sabha, where the UPA government holds a majority in the House, the composition is different in Rajya Sabha. As on 28th December 2011, the total strength of Rajya Sabha is 243 members . The UPA has a combined strength of 95 members in the House, well below the 50% mark. (Of course, there will be some absent members which will change the arithmetic a bit.) The passage of the Bill thus depends on the stand taken by other political parties and their numbers in the House. Here's how the figures stack up:
| Party | Numbers |
| Indian National Congress (INC) | 71 |
| Dravida Munnetra Kazhagam (DMK) | 7 |
| Nationalist Congress Party (NCP) | 7 |
| All India Trinamool Congress (AITC) | 6 |
| Jammu and Kashmir National Conference | 2 |
| Sikkim Democratic Front (SDF) | 1 |
| Rashtriya Lok Dal (RLD) | 1 |
| Total UPA | 95 |
| Bharatiya Janata Party (BJP) | 51 |
| Janata Dal (United) | 8 |
| Shiv Sena (SS) | 4 |
| Shiromani Akali Dal (SAD) | 3 |
| Total NDA | 66 |
| Communist Party of India (Marxist) | 13 |
| Communist Party of India (CPI) | 5 |
| All India Forward Bloc (AIFB) | 1 |
| Total Left | 19 |
| Bahujan Samaj Party (BSP ) | 18 |
| Biju Janata Dal (BJD ) | 6 |
| All India Anna Dravida Munnetra Kazagham (AIADMK ) | 5 |
| Samajwadi Party (SP ) | 5 |
| Rashtriya Janata Dal (RJD ) | 4 |
| Asom Gana Parishad (AGP ) | 2 |
| Bodoland People's Front (BPF ) | 1 |
| Indian National Lok Dal (INLD ) | 1 |
| Lok Janasakti Party (LJP ) | 1 |
| Mizo National Front (MNF ) | 1 |
| Nagaland People's Front (NPF ) | 1 |
| Telugu Desam Party (TDP ) | 4 |
| Nominated | 8 |
| Independent and others | 6 |
| Total | 243 |
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.
